The most recent news of yet another fintech startup closing doors, proves just how tough is current market. The fintech landscape got crowded, and startups have to work that much harder to stand out from the crowd.
According to Crunchbase data, global venture funding in Q3 2024 decreased by 16% compared to the previous quarter and 15% in a year-over-year perspective. If this trend holds, in 2025, fintech founders are likely going to face even greater challenges when competing for investments. Success will hinge on more than just launching good products or having reasonable roadmaps; businesses will have to put more effort into adopting communication strategies that resonate with investors and consumers and position them in a favourable light.
How can that be done, you might ask? Well, let’s take a look at some practical examples.
1. Personalisation and founder-focused branding
Investors today look beyond just your product offering; they want to understand the people behind the project. Given the ongoing economic turmoil, they must be careful about choosing where to put their money, and a compelling founder story can make all the difference when trying to secure funding. If you look trustworthy (with a digital footprint that can back that image up), your chances of success increase considerably.
Consider, for example, Revolut’s CEO, Nikolay Storonsky. Over the years, the man has repeatedly leveraged both his education in Economics and previous background as a trader to validate his company’s credibility and make Revolut into one of the biggest fintech names out there. Personal branding, when done correctly as part of broader communication strategies, inspires trust and highlights a founder’s ability to achieve success.
As such, in the upcoming 2025, fintech startups will have to focus more on “humanising” their communications, highlighting the experiences and values of their teams and leaders. Showcasing your expertise and vision, as well as sharing stories of past challenges, achievements, and lessons learned, will go a long way towards building rapport with your target audience.
2. Democratisation of financial services
When we talk about fintech companies, their ability to improve the situation with global financial inclusion is often one of the most well-raised points, particularly in underserved markets. Products that simplify access to financial tools for broad demographics are increasingly gaining traction. This trend also aligns with the growing demand for social responsibility in business practices.
Take Paystack, a Nigerian platform that streamlined online payments for small businesses across Africa. Throughout 2024, it has steadily shared updates about new developments and partnerships, and you could always see a clear line of communication in the messages. Specifically, the company’s mission is to empower local merchants and drive the growth of mobile commerce in Africa.
Having a clear-cut goal and sticking to it across all your messaging is a good way to make your business understandable for regular customers, partners, and investors alike. They are more likely to choose you when they understand what you’re all about – the logic is pretty straightforward, don’t you agree?
In terms of practical advice, I suggest sharing success stories on a regular basis. Highlight how your solutions can simplify and make financial services more affordable and what real-life benefits your users get out of them.
3. Transparency and trust-building
Fraud has always been a prevalent issue in financial markets, and it will likely continue to be. In 2024, over 50% of banks, fintechs, and credit unions stated that they’ve seen an increase in both business and consumer fraud cases. Consumers themselves, meanwhile, reported over $10 billion in cumulative fraud losses.
For obvious reasons, such circumstances are not very good for companies that provide financial services, seeing as user trust keeps getting eroded. Once burnt, twice shy, as the saying goes. As a result, transparency is becoming non-negotiable for fintech startups. By openly communicating their safety measures and operational processes, startups can position themselves as trustworthy companies that people can place faith in.
Having robust security frameworks in place and proactively addressing concerns raised by your community can do a lot in terms of spreading the adoption of your services. You can do a lot to reinforce your positions in this field. Here are some examples:
- create content that explains your security practices in simple terms;
- provide regular updates about any changes in your compliance;
- build trust through user testimonials that highlight your reliability and customer-oriented approach.
People value it a lot, when a company can be easily approached and will help alleviate their worries.
4. Social responsibility and sustainability
The ESG (Environmental, social, and governance) agenda has rapidly gained popularity among the investor community in 2023-2024, and many businesses today can’t afford to ignore it if they want funding. Almost 90% of investors consider ESG when making investments. As such, startups that are willing to integrate sustainability metrics into their strategies (and their communications, naturally) are better positioned to attract attention from today’s investor audience.
Of course, there is also growing scepticism about “greenwashing” to consider — when companies talk about sustainability but fail to take tangible actions to support it. Roughly 30% of investors claim that they have trouble finding appealing investing opportunities, and part of that trouble likely comes down to this reality.
So, if you’re going to make an effort to insert your startup into this agenda and ride the ESG wave, make sure you’re actually serious about it. Because you will have to dedicate resources here and regularly report on positive impact your operations have on societal or environmental well-being. If you don’t, then this can actually backfire on you, damaging the brand’s reputation and eroding trust.
5. Investor engagement through strategic PR
As we’ve already covered, the competition for VC funding is fiercer than ever these days. So if fintech startups want to attract investors, they must be strategic about positioning themselves as industry thought leaders. PR activities that showcase expertise, innovation, and market relevance are essential for standing out.
As such, it is important that your spokespersons regularly contribute to relevant media publications, sharing insights on recent trends and innovations. By getting consistent positive exposure in media outlets, your project can build credibility. Later on, this exposure can be leveraged in negotiations with potential investors and when networking during various industry events and conferences.
Social media is also a good communication channel to consider. As you put yourself out there and become recognisable, more people will actively seek you out. By implementing thoughtful communication strategies and sharing both personal thoughts and professional achievements, founders can build up a loyal following, which will add bonus points to their brand’s visibility.
