Fintech Positioning: A best practice guide to differentiating your Fintech from the competition
TLDR
Understand your unique value proposition by analysing your product's strengths and aligning them with customer challenges.
Define your competitive landscape to identify where you stand out.
Craft a clear and compelling message that resonates with your target audience.
Test and refine your positioning based on feedback and market shifts.
Positioning is an ongoing process; regularly revisit and adjust as needed.
With new players entering the Fintech market constantly, differentiating your Fintech isn't just a nice-to-have—it's essential to a robust Fintech Marketing Strategy. Marketing directors and managers often find themselves facing a dilemma: they recognise the need for better positioning but are unsure how to go about it. This Fintech positioning guide will walk you through a step-by-step process to help you stand out by clearly communicating your unique value proposition to your target audience.
Why positioning matters in Fintech
Positioning is all about carving out a distinct place for your brand in the minds of your customers. In Fintech, where products and services often overlap, effective positioning allows you to communicate why your solution is not just another option but the best choice for a specific audience. Without strong positioning, even the most innovative product can struggle to gain traction.
Step 1: Understand the market context and define your audience
To effectively position your Fintech, start by understanding the market landscape and clearly defining your target audience. This involves identifying the unique challenges your audience faces and how your product or service addresses these challenges in ways competitors cannot.
Market research: Conduct comprehensive research to understand the current trends, customer pain points, and gaps in the market. Use tools like surveys, interviews, and competitor analysis to gather insights.
Audience segmentation: Break down your target audience into specific segments. Consider factors like industry, company size, decision-maker roles, and key pain points. For example, are you targeting small businesses looking for streamlined payment solutions, or large enterprises needing robust financial analytics?
Example: How Stripe defined a target audience to help them differentiate
Stripe effectively segmented its audience by focusing on developers and small businesses that needed an easy-to-integrate payment solution. By targeting this specific segment, Stripe differentiated itself from broader payment processors like PayPal.
Step 2: Identify and articulate your unique value
Once you understand the market and your audience, the next step is to identify the unique value your product offers. This is where you align your product's strengths with the specific challenges your audience faces.
Unique Value Proposition (UVP): Your UVP is the core of your positioning. It should clearly state what makes your product different and why it’s better suited to solve your audience’s problems. This is not just about listing features but about highlighting the benefits that resonate most with your target customers.
Alignment with customer challenges: Focus on how your product’s features translate into tangible benefits for your customers. For example, if your Fintech offers faster transaction times, link this feature to the business impact, such as improved cash flow or reduced operational costs.
Example: How Robinhood articulated its UVP to engage its target customer
Robinhood’s UVP is centred around “democratizing finance for all.” By offering commission-free trading and an easy-to-use platform, Robinhood positioned itself as the go-to solution for young, tech-savvy investors looking to enter the stock market without the traditional barriers.
Step 3: Analyse competitors and differentiate
Understanding your competitors is essential to positioning your Fintech effectively. By analysing their strengths and weaknesses, you can identify opportunities to differentiate your offering.
Competitive analysis: Conduct a detailed analysis of your top competitors. What are their strengths and weaknesses? How do they position themselves in the market? Look at their marketing messages, customer reviews, and product features.
Positioning map: Create a positioning map to visualize where your product stands in comparison to competitors. This can help you identify white spaces in the market where your fintech can stand out.
Differentiation strategy: Based on your analysis, determine how you can differentiate your product. This could be through superior integrations, pricing models, or a niche market focus.
Example: How Wise took a competitor’s weakness and made it their strength
TransferWise (now Wise) differentiated itself in the crowded money transfer market by focusing on transparency and lower fees. While traditional banks often had hidden fees and poor exchange rates, Wise's clear and low-cost pricing resonated with customers frustrated by the lack of transparency of existing solutions.
Step 4: Craft your Fintech positioning statement and messaging
With a clear understanding of your unique value and how you stack up against competitors, it’s time to craft a compelling positioning statement and messaging that will resonate with your target audience.
Positioning statement: Your positioning statement should succinctly capture the essence of your brand’s unique value. It should answer three key questions: What is your product? Who is it for? What makes it different?
Messaging framework: Develop a messaging framework that consistently communicates your positioning across all channels. This includes your website, social media, Fintech advertising campaigns, and sales collateral. Ensure your messaging is clear, concise, and customer-focused.
Testing and refinement: Test your messaging with a small segment of your audience before rolling it out widely. Gather feedback and be prepared to make adjustments. Effective positioning is often iterative.
Example: How Square’s positioning keeps them focused on their customer
Square’s positioning statement focuses on its ability to empower small businesses to accept card payments with ease. Their messaging across all channels consistently reinforces this focus, making it clear who they serve and how they do it.
Step 5: Continuously monitor and refine your Fintech positioning
Positioning isn’t a one-time exercise. The Fintech landscape is dynamic, with new competitors, changing customer expectations, and evolving technologies. To stay ahead, you’ll need to continuously monitor your positioning and be ready to refine it as needed.
Customer feedback: Regularly collect feedback from customers to understand how they perceive your brand and its value. This can be done through surveys, interviews, and social listening.
Market trends: Keep an eye on industry trends and competitor movements. Are there new entrants in the market? Are customer preferences shifting? Use this information to adjust your positioning strategy accordingly.
Repositioning: If you find that your current positioning is no longer resonating, don’t hesitate to reposition your brand. This might involve targeting a new audience, emphasizing different product features, or even rebranding.
Example: How PayPal continuously evolves its positioning to stay relevant
PayPal has undergone multiple repositioning efforts to stay relevant. Initially focused on online payments for eBay users, PayPal has since expanded its positioning to become a comprehensive digital wallet and financial services platform, appealing to a broader audience.
Conclusion
Differentiating your Fintech in a crowded market is challenging, but by following a structured process, you can carve out a unique space that resonates with your target audience. Remember, positioning is not just about being different; it’s about being different in a way that matters to your customers. By understanding your market, identifying your unique value, analysing competitors, and crafting compelling messaging, you can position your Fintech for success.
Need help with your positioning from a specialist Fintech Marketing Agency? Book a strategy call today to learn how we can help you stand out from the competition and connect with your target audience.
