There are few industries that have sprouted up with as much strength thanks to data-driven approaches as financial technology. By its very nature, technology that deals with accounts and financial information have to rely on accurate data and real-time processing, and so it is no surprise that the Fintech industry has also become very well versed in using data for marketing purposes.
The financial trading sector, in particular, has become a far more mainstream player in recent years owing to the fact the companies involved in it have been smart at how they target potential new traders.
The Growth of Forex and CFD Trading
In Fintech, a lot of things now exist that were not possible 20 years ago. Much as in the past one couldn’t go to a cash machine and had to visit a bank branch, things have evolved so that being able to check a bank balance online or engage with customer service for your credit card using a web chat are normal and expected.
Similarly, online technology has made it possible for ordinary people to get involved with what were once niche things only available to banks and professionals, such as the forex market. Trading currencies is something that a lot of people now do as a form of investment or to try and make some extra money from their available capital by leveraging the markets, but this wasn’t something that could be done before mainstream high-speed internet.
Winning an Audience
Financial regulations meant that these companies had to be honest with customers and not promise ridiculously high performance or profits, and warn that it was also possible to lose money with bad decisions, so marketing for platforms and investment methods has always been fairly ethical.
Rather than bombastic claims about making users rich, forex and CFD companies instead focused on trying to educate the user base about what these services were, and how they could offer a new opportunity that was a viable alternative to share trading and other more conventional forms of trade and investment.
Companies specializing in brokering trade in forex and CFDs were able to make big strides by using things like search-based marketing. The people they wanted to attract were those curious about investing, and so digital approaches made it easy to promote themselves to people using search terms like ‘what is CFD trading’ or ‘how to get started with forex’. This allowed them to put themselves in front of a very specific set of people in a cost-effective way, and market what was effectively a new industry to the people most likely to want to be involved with it.
The rise of trading platforms and the way they are marketed certainly shows how fintech is a sector that really couldn’t exist without recent innovation and is one whose success will always be tied to how well digital approaches are used.