It’s been a long time coming—but the financial technology sector is finally booming.
Venture capital investors invested $44.4 billion in young fintech companies last year, when just over a decade earlier, they invested just $1.1 billion annually in the space.
And this is only the beginning. Investor Mark Goldberg told the New York Times that he expected to see $1 trillion of market value poured into new financial companies over the next twenty years. And this investment will likely come from traditional financial institutions.
It’s time for incumbent institutions to integrate new technology into their systems. But how?
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Financial Services Need to Become More Savvy
Between crypto swinging back and forth based on the commentary of one eccentric tech mogul, retail investors blowing up meme stocks and fintech companies taking over regulated banks, the finance industry has enough going on to keep one’s head spinning.
Generally, bank execs are showing curiosity mixed with a touch of fear towards upcoming financial platforms. Banks offer stability to businesses, but they often don’t offer the same level of ease, innovation and customer experience that fintech startups specialize in.
Even though banks could purchase these start-ups to give their business customers more convenient experiences, there haven’t been any major M&As over the last couple years.
And with their massive resources, banks can build similar tools that successful fintech companies offer. JPMorgan entered the fintech competition by releasing a point of sale challenger to Square and Paypal last year. It may be late in the game, but JPMorgan’s scale advantage will likely drive more profitability than its competitors.
It’s unclear how big the “disruption” to the financial services industry will be, but it’s clear that fintech funding is pouring in. Banks will have to overcome regulatory challenges and reimagine legacy systems to meet customer expectations.
With start-ups off to the races and the old guard institutions marketing their reliability, we’ve seen advertising spending add up this past year.
Within the B2B Financial Services space, 39% of advertisers returned in the month of April YoY (2020 vs 2021).
There were 1.7k advertisers who spent $53.1mm in the month of April, which is a 57% increase in spend YoY and 21% increase in the number of advertisers. In 2020, 1.4k companies spent $33.9mm.
Print spend fell 3% YoY from $11.3mm to $11mm.
Meanwhile, digital spending increased 86% from $22.6mm to $42mm. This acceleration of digital advertising doesn’t come as a surprise. Overall B2B digital spend increased during the pandemic and hasn’t slowed down.
Of the top 100 spending brands in April 2021, 80% of them returned from April 2020.
Top returning spenders include:
For more details on top spending financial brands in the B2B space, feel free to reach out to us.
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