Industry faces uphill PR battle to gain consumer trust
“So many fintech businesses exist to offer the consumer a simpler, more rewarding and more convenient financial services experience. But, the potential of these platforms isn’t resonating with UK consumers. They simply don’t view fintechs as a viable alternative to traditional banks – yet”, says Luke Budka, a director at TopLine Comms.
“Fintech needs to do more to promote itself and educate consumers on services and their advantages”, says Kimling Lam, SVP marketing at online payment service provider Checkout.com. “Undoubtedly it is a thriving industry, particularly in London, but it’s up to the industry as a whole to show people that technological innovation is the future of financial services and that associated companies are more than capable of gaining consumers’ trust. Fintech marketers must focus primarily on clearly communicating the benefits of their services to end-users, and less on jargon-filled promotion of their company as a whole.”
Distrust of fintech stems from a lack of understanding around how fintech companies work, and the services they provide. Just under a third (27 percent) cited this lack of understanding as the primary reason for trusting traditional banks more, followed by the absence of physical locations, in which they could seek out help (22 percent).
Eighty percent of those surveyed said they didn’t use the services of any new digital banking and finance companies and almost half (46 percent) said they would not use their services – leaving fintechs with a lot of work to do. More than half (53 percent) stated that the ability of fintechs to guarantee the safety of their money would be key in influencing their trust.
Budka continues: “Fintech as a consumer facing industry is relatively new, so it’s natural that consumers are less aware of new digital businesses. Stand-out fintechs, like Monzo, have done exceptionally well building their brands over the past few years, but evidently there is still a lot of work to be done to increase consumer confidence. There is huge potential for these companies, provided they get their messaging right and work at making themselves the new norm.”
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Notes to editors
- This survey was carried out by SurveyGoo in October 2018 and studied the attitudes of 2,000 consumers in the United Kingdom.
- The full findings of the survey are available upon request.
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