Covid has changed the communication and engagement metrics for people. They are on their phones most of the time. There has been a massive shift and adoption of digital and that’s the reason why marketers are shifting from traditional to Online / Digital marketing.
Google Temasek Bain & Company Report : e-Conomy SEA 2020 highlights the Flight to Digital in South East Asia.
Internet usage in Southeast Asia (SEA) continues to multiply, with 40M new users this year alone (400M YTD vs 360M in 2019). The region remains in the throes of COVID-19, and its economic impact is still unfolding. Already evident, however, is that the coronavirus has brought about a permanent and massive digital adoption spurt, with more than 1 in 3 digital services consumer (36% of total) being new to the service, of which 90% intend to continue their newfound habits post-pandemic.
One such example of digital marketing is Influencer Marketing.
Many marketers are engaging with Influencers to promote their products / services and are reaching out to the audience that belongs to their niche. Influencer marketing is a cost saver for marketers as it has the minimal spillover and ability to use content created to repurpose it for further use. With respect to Fin-Tech brands, Influencer marketing gives them the ability to reach a wider focused audience compared to the traditional marketing channel. Therefore Influencers have successfully leveraged their reach for multiple Fintech brands across the world.
Here are a couple of reasons why FinTech Brands should consider Influencer Marketing:-
1. Reach out to Millennials and Gen-Z audience:-
Millennials and Gen-Z spend over 3 hours 20 mins on an average every day on Social Media. This audience consumes most of their content on social media and have high trust equity with the Influencers they follow. Since credibility and trust is a key component in users choice of Financial product or services, Influencer marketing is the key to achieve higher ROI from the Millenials and Gen-Z followers.
2. Build trust through Personal Connections:-
Influencers who have content affinity or expertise with the Financial sector will understand the value of the Fintech product / service and post relevant and relatable content that grabs the audience’s attention and they find it genuine and relevant. Also, Influencers can tell stories and add a personal touch by sharing real-life experiences, for instance – buying a home, investing in stocks, etc. This will help the audience to connect with the influencer on a personal level and build connections. A combination of such Influencers known as Always On Influencers and other set of Influencers who widen the reach and deepen the impact can be very effective with a relatively higher ROI.
3. Improves Credibility and Engagement:-
This form of marketing is nothing else than the modern age of ‘Word of mouth’ marketing. Your audience trusts the influencers a lot and because of that they can attract the audience’s attention and lead to increased engagement through likes, shares, and comments. Influencers also drive other actions like clicks to your fintech brand’s social profile, visits to the websites, etc.
A look at some key stats for Digital Financial Services (DFS) in South East Asia demonstrates a clear trend:
- Digitalization of all participants in the DFS ecosystem has been accelerated
- Consumers: Long-lasting newfound online habits
- The eco system is Accelerating away from cash
- There is an increased trust of online transactions
- In the business sector there has been a migration of merchants and SMEs online
- Barriers to adoption of digital payment have been lowered by the pandemic
- Shift to online transactions (i.e. listing on e-Commerce and food delivery platforms)
- More digitally recorded transactions allowing better credit assessment
- Customer acquisition, education, and engagement efforts moved online
- New urgency for established financial services players to digitize operations
- DFS seen as critical value driver by online platforms increasing competition
- Increased encouragement and support from regulators for consumers to adopt DFS
- Continued innovation from regulators can further accelerate growth (i.e. Digital bank licenses, e-KYC infrastructure, etc.)
The conclusion is that Consumers and SMEs in South East Asia have adopted Digital Financial Services like never before and behavioral changes are here to stay and will boost adoption and penetration. For Fintech marketers – the shift to Digital in imminent and Influencer marketing will play a key role within the Digital marketing offering.
We at BeTagged have a strong focus on enabling Fintech brands to judiciously spend on Influencer marketing to get the best ROI in the marketing efforts.