how fintech lenders can light a fire in the financial industry with referral marketing

How FinTech lenders can light a fire in the financial industry with referral marketing

The competition has changed

• Originally FinTech companies goal was to steal SMB business away from big banks.

• But big bank have cut back on SMB loans since the ROE (return on equity) did not make it worthwhile to pursue when compared to the amount of underwriting required.

So what does that mean?

While FinTech lenders are out running some of the traditional financial institutions they now need a newer and better way to disrupt the alternative lending world.

Q: But how do you disrupt a disruptor?

A: A highly charged customer acquisition channel.

What channel?

Big banks have had years to establish SEO keywords and PPC which makes it very hard to surpass.

In fact, many of the traditional channels have such a high volume of traffic already and have been mined so thoroughly that it is very difficult to make a real mark with them.

When choosing a customer acquisition channel that breaks through the noise focus on 3 keys

1. Establish a proprietary channel.

2. Ensure your channel is data-rich.

3. Confirm that your channel integrates with your current technology.

Referral Marketing programs cover these 3 keys by:

1. Optimizing the acquisition of new lenders and borrowers.

2. Making FinTech companies more efficient through automation, to scale the business and increase revenue.

3. Delivering a superior customer experience.

By incentivizing customers and partners to make a trusted introduction to their peers.

How?

Leading to:• Leads converting 4X better

than traditional marketing (emarketer)

• Decreased churn by 18% compared to non-referred customers (Harvard Business Review)

• Increased LTV by 16% compared to non-referred customers (Harvard Business Review)

• 36% conversion rate from referral to customer for a financial service company (Amplifinity Financial Service case study)

Put an emphasis on partner referral programs as well as a customer program

Partner referral programs help to leverage financial institutions to refer lenders and borrowers that don’t meet their qualification but would fit FinTech lender’s preferred demographic.

But what would motivate them to do this?

• Referring gives banks a way to offer a fuller service that improves their image and meets a wider group of customer and prospect needs. 

• FinTech lenders can provide referrals back to partners and offer an incentive if a bank or financial institution’s referral becomes new business.

Discover what your ROI could be from both a customer and partner referral

program with the ROI calculator today!

Learn how to start a referral program at Amplifinity.com