Programmatic Adoption in Fintech
The fintech growth story is one that’s unparalleled. Globally, financial services adoption was on the rise from 16% in 2015 to 64% in 2019. (EY) The pandemic accelerated this already upwards growth trajectory by leaps and bounds. And the rest is history.
2021 was the year that saw unprecedented new spikes in advertising spend and the trend since has been upward through 2022 and now in 2023. But fintech’s adoption of programmatic advertising is a journey that has just begun.
In this blog, we address the common perceptions and challenges holding back fintech apps from mobile advertising. We also talk about the immense opportunities that programmatic offers for fintech apps.
Common Challenges in Programmatic Adoption
It didn’t take too long for the world to get comfortable with the idea of managing their finances via their mobiles. Especially in emerging markets across LATAM, APAC, and Africa, fintech apps saw enormous growth rates, fuelled by a need for more innovative finance solutions.
By 2020, fintech was the 2nd highest in terms of the number of apps and the 6th highest by install volume (Appslyer). Yet, there’s a disparity in the percentage of fintech apps that adopted programmatic advertising. Why is that?
A Perception Problem
Real-time bidding, algorithms, data management platforms, demand-side platforms, and ad exchanges. Let’s face it; programmatic is no rocket science but can certainly seem so for the uninitiated. Especially for fintech, programmatic advertising is still a fairly new idea.
It’s okay if the technicalities sound strange. Here’s how you can do a basic hygiene check
to ensure that you’re working with trusted partners.
- What kind of user data is collected and processed by the platform?
- Does the company sell its clients’ audiences to third parties?
- Will the company use client data for other advertisers’ campaigns?
- If the data is stored, how long are they authorized to do so? Where is it stored?
- What happens in the case of a breach or hacking? Are the security systems robust?
- Whether the platform provides not only clicks but also impression-level transparency?
- How will they assure brand safety?
- Has a third-party regulating body carried out a security assessment of the supplier’s systems?
Regulations and Compliance: A Roadblock to Advertising Adoption?
From user privacy and market-related regulations to compliances, the regulatory issues in fintech are many. For fintech app marketers, this poses a big barrier to digital advertising adoption. Working with an AdTech partner, say a DSP, requires:
– sharing the data needed for retargeting users.
– integration with DMPs, CRMs for a comprehensive understanding of the user journey.
– MMP integration for accurate attribution and measurement
While all this sounds new, what is unfamiliar doesn’t equate to bad.
How does Programmatic work?
Programmatic advertising was born out of a need for automation and efficiency in digital advertising. It uses AI-powered algorithms to identify the best audiences for your app and automatically bids on the most relevant ad spaces. It enables advertisers to access high-quality and relevant inventories, at scale.
From audience segmentation to campaign optimization and reporting, it is designed to be precise, scalable, customizable, and highly efficient.While resistance to a new channel is understandable, programmatic advertising is far too impactful to be ignored. Furthermore, programmatic advertising has evolved to be highly privacy-compliant.
How do we do it at RevX?
No collection of personal data: Audience targeting is done solely through device IDs, to be able to run better retargeting campaigns. The sole purpose is to target the right audience with the right ad, every time.
We have employed industry standard security measures and information security policy. We also undergo ITGC and DPTM audits, vulnerability testing, while following private data handling practices.
Publicly listed company with stringent compliances: RevX is a part of the Affle group, a publicly listed company with strict compliances in place. We are also compliant with major privacy laws like GDPR and CCPA. We simply can not afford to have any loose ends and take strict measures to uphold data safety.
Transparency in our Tech and our Culture: Most importantly, transparency is a pivotal part of our culture. Our platform was designed with user privacy at the very heart of it.
“At RevX, we implement all necessary technical and organizational security measures like information security policy, pseudonymization and encryption of personal data, firewall, anti-virus, and anti-spyware, cloud security and VPC, access controls – user identification and authorization, multi-factor authentication, protecting data during transmission and storage, certification/assurance of processes and products, data minimization and code obfuscation, data quality and limited data retention, performing penetration testing, disaster recovery and business continuity etc. to protect clients data against any kind of fraud, phishing, accidental unauthorized or unlawful destruction, loss, unauthorized copying, alteration, unauthorized disclosure or disposal of, or access to any kind of data. We are a DPTM-certified company and an active member of the TCF, and GDPR framework.”
– Manhar Sapariya, Director – Engineering, RevX
Winning in a Highly Competitive Market
Globally, the average share of non-organic installs per finance app was 53% (AppsFlyer report). With increasing fintech popularity, the user acquisition battle is naturally fierce.
What this means for fintech apps is increased competition, higher user acquisition cost, ad fatigue, and an imperative need to innovate.
To win in such a market, you need to:
– Reach a massive audience at the right price
– Guide installed users throughout the user journey
– Maximize value from each user and increase retention
Programmatic advertising was designed for scale, efficiency, and profitability. It’s your best bet to be seen and heard in this market.
Closing Remarks
With digital technologies reshaping finance, fintech apps have become an integral part of people’s everyday lives. However, there continues to be a major gap in awareness and education around fintech around the world.
Programmatic advertising holds the power to
– effectively reach this massive untapped audience
– engage your existing users
– convey your app’s value in the evolving economic context
– and overall, make lives easier (for your and your users)
“Phones have evolved to be the prime wallets and lockers of the 21st century – with all important details in the user’s palm. With growing mobile usage adoption, forward-thinking financial marketers need to start researching the opportunities to leverage the real-time changes in consumer behavior offered by programmatic ad buying.
Financial institutions have the ability to amass consumer data in vast quantities from their users, but success will be determined by how the data is used to identify prospects, create models of new audiences and deliver personalized messages at scale with all safety protocols being followed.
At RevX, we have the programmatic capabilities to uncover untapped audiences, both new and existing – to reach your prospects when they are most receptive to your message, to be ahead of the competition curve.”
– Shashwati Shubhadarshini, Senior Account Manager, RevX
In the upcoming blog, we will explore user acquisition and retargeting strategies for fintech apps. Watch this space!
Learn more: revx.io
Lauren Heineck
