By: Jack Dobbin
For its tenth anniversary LendIt has been rebranded as Fintech Nexus, a change that signifies the evolution of the fintech landscape from providing solutions for single-channel problems to an interconnected web of data providers, digital integrators, and as-a-servicers. Pick a term from column A, match it with a term from column B:
|Column A||Column B|
Whichever combination you picked, you can find a company here at Fintech Nexus that does that Thing.
As this industry has become more sophisticated and specialized, lenders, issuers, and banks have reaped the benefits. No longer do underwriting teams have to rely on first-generation credit files. Resources don’t have to be squandered building an app or servicing portal from the ground up. These innovations allow financial companies to pass the benefits along to their customers, providing credit solutions to previously underbanked customers and efficient access to those who have come to expect it. As LendingClub CEO Scott Sanborn said, “It would be great if someone could make it easier to make good financial decisions.”
But despite how excited all these financial companies are to discuss these innovations and put them into practice, that same enthusiasm rarely comes through in marketing to customers – the same customers who are the primary beneficiaries of these innovations. Why don’t credit providers and banks more heavily feature the tech improvements they’ve made in their customer and prospect touchpoints? Take for example OppLoans – whose Chief Risk and Analytics Officer Chris McKay discussed the virtues of using bank transactional data to paint a better risk picture of the subprime customer in a Fintech Nexus panel session. They are providing loans with better rates to customers who would never have qualified under historical underwriting models with traditional credit data. This is great for subprime customers who need a loan!
But how is this being communicated through marketing? Prioritize giving customers a value proposition to get excited about. Here’s a great example from Petal, whose CEO Jason Gross was on the same panel:
Competiscan Entry ID: 2022-03-25-4246
Petal puts their “new approach to credit” front and center: they are looking beyond the traditional credit score by using banking history to offer customers “more credit at better rates.” It’s the same tech other credit issuers are using – but their creative is transparent with the tech and celebrates the benefits.
The tech innovations happening in the financial industry – and that are highlighted here at Fintech Nexus – should serve as differentiators in crowded marketplaces. Make sure that they are being captured and celebrated in your primary marketing campaign.