What innovative growth hacking methods are fintech startups using to scale rapidly?

By Victor Adewole

If we were to take a chronological look at the evolution of marketing strategies in the financial industry in Nigeria, we would encounter interesting times, especially around the early 2000s.

This was when media marketing and community marketing, or outreach, were gaining momentum and becoming a trend many banks had to follow.

Remember the classic TV commercials from the likes of Skye Bank (I Wish)? Or the street dance displays that were organised by the likes of UBA to convert petty traders and other roadside merchants into customers?

As much as those forms of marketing can be considered effective in the present time, they can only bring minimum growth and passive customers because they are stale.

What changed?

The times did. There has been a significant change in the entire social ecosystem, affecting both businesses and consumer behaviour over time. The rise of social media, tech, and digital marketing has taken over whatever marketing that TV commercials alone can provide.

That form of marketing can be limiting because of the continuous decline in the number of people who actively watch TV in this digital time. A recent survey by my team showed that viewers between the ages of 13-37 would sit in front of a TV only because of a reality show.

This is why many brands clamour to advertise on the Big Brother Naija network —because during this period, most people turn their attention to the TV. However, this is just a market trend and should not make up the entirety of a brand’s marketing strategy. Fintech startups are incorporating innovative strategies matching the digital era to scale the global market.

How digital marketing strategies have driven the adoption of fintech services globally

First of all, what is fintech? Fintech, short for financial technology, is the use of innovative and disruptive technology to deliver financial services.

Fintech startups face two significant challenges presently: fierce competition and market expansion. It is from these challenges that the leveraging of digital marketing was developed. With digital marketing on social media platforms, fintech companies can now reach a wider audience, expanding the areas where their services can be adopted.

One problem that digital marketing is solving for fintech startups is geographical limitation, which can stifle the impact their businesses can provide.

This is why there is a rise in fintech startups that are not physically located today. Neobanks, like credit-led mobile bank FairMoney, are beginning to co-exist with traditional commercial banks, catering to individuals and businesses seeking innovative 100% banking options.

More of these fintech startups gaining advantageous recognition and preference over traditional banks are Opay, Flutterwave, Piggyvest, Carbon, and Paga, among many others. These banks do not have physical outlets but have used innovative offerings advertised to the public through digital marketing strategies to scale rapidly.

So, what innovative growth hacking methods are these startups using?

1. Social Media: All these brands have a well-managed social media page where they can attract followers and interact with customers and potential customers. One of the first things a potential customer does before patronising a brand is to check its social media pages. These brands understand this consumer behaviour and are leveraging it.
2. Website Traffic: Brands use social platforms to drive traffic to their websites by adopting an extensive internal linking approach, utilising SEO strategies, and infusing call-to-actions that are most likely to convert. These platforms could range from Twitter, Instagram, or Telegram to emails.
3. Content Marketing: Content is a potent tool for upscaling startups. This is why companies are becoming more innovative and creative with the content they publish on social media. If well-established companies like Apple, Samsung, and Coca-Cola are leveraging content marketing, why not startups? However, the major hack is creating high-quality content related to your brand’s audience.
4. Influencer Partnerships: According to Aspire, 69% of marketers are planning to increase their influencer marketing budget in 2024. Why? Because it is effective and valuable. Through influencer partnerships, fintech startups gain access to the communities and network of influencers they could not reach directly. And as nano- and micro-influencers consistently achieve the highest engagement rates across all platforms, more fintech brands are working with smaller creators.
5. UX Optimisation: Fintech startups regularly update their apps and software to achieve customer satisfaction and growth. Fintech brands understand that the easier it is to navigate an app, website, or digital platform, the more positive interactions and leads that could be generated.

Other growth hacks include referral marketing, data and analytics, paid advertising, and email marketing.

In summary, growth hacking combines marketing, technology, and product development. It aims to identify scalable and repeatable tactics that can accelerate growth. It focuses on the entire customer journey, from attracting potential customers to converting them and retaining their loyalty.