The Rise of FinTech Ad Spending: A 45% Surge in 3 Years

FinTech Ad Spending Climbs 45% in Last 3 Years

FinTechs are reportedly boosting marketing in bigger cities to attract a wider customer base. In the last three years, ad spending by these companies has climbed by more than 45% on average, Bloomberg News reported Sunday (Jan. 5). The 45% figure, the report said, comes from Outfront Media, an advertising company whose clients include several high-profile FinTechs, including CashApp, Klarna, PayPal and its peer-to-peer arm Venmo.

Marketing Evolution of FinTech Companies

This spending growth comes as FinTechs grow in popularity among users, setting the stage for potential acquisitions or initial public offerings (IPOs). According to Jeff Titterton, chief marketing officer at Stripe, FinTech companies are broadening their horizons beyond digital-native businesses to target a wider audience.

Titterton stated, “But what we’re seeing right now is that they’re taking on a broader purview. Their addressable market is continuing to grow, which is why you see us showing up in places where we might not have before.”

Expanding Marketing Strategies

Another FinTech, corporate cards/expense management firm Brex, has also increased its advertising expenditure, focusing on messaging aimed at businesses of all types and sizes, not just startups. Scott Holden, chief marketing officer at Brex, mentioned the shift in their out-of-home messaging strategy to cater to a wider audience.

Holden said, “Before I joined Brex, we never targeted the enterprise audience specifically in our out-of-home efforts. We really focused on using that medium to sell our corporate card to startups. Then when I joined, we launched our out-of-home messaging to be about Brex being a unified spend platform.”

Regulatory Challenges and Future Outlook

Despite the growth in ad spending, FinTechs are facing increased regulatory scrutiny, particularly regarding their partnerships with banks and issues such as hidden fees. The collapse of Synapse Financial Technologies in the previous year brought about challenges for its clients. There are hopes that regulatory pressure could ease under the new Trump administration.

In other FinTech news, financial technology companies and credit unions are transitioning from competitors to partners to meet the rising demand for seamless banking experiences. Collaborations between FinTechs and credit unions have been mutually beneficial, offering innovative solutions to enhance member experiences.

We’re always on the lookout for opportunities to partner with innovators and disruptors.