Financial technology, also known as fintech, is taking over the UK market and you wouldn’t believe the scope it has. Imarc Group has shared its report on the UK Fintech Market Report 2024-2032 that this domain is inviting investments from traditional financial institutions and venture capital which is proving to be a good driving force for the market. The funds are giving rise to alterations in payment methods, digital banking, and the development of financial software, ultimately boosting market growth.
Another data by Mordor Intelligence has been put forward that the United Kingdom Fintech market size holds a value of approximately USD 14.74 billion in 2024 and is anticipated to reach the target of USD 24.06 billion by 2029.
However, amid this promising landscape lies a shadowy threat: the specter of data breaches, which can wreak havoc on fintech companies and their stakeholders. These breaches not only compromise sensitive information but also erode trust and confidence in the industry as a whole. In such risky situations, a financial PR agency specializing in financial communications steps in as an invaluable allies.
Allow the blog to spill the beans as it will give you a detailed insight regarding the fintech industry, an example of a company that faced a data breach, and the role of PR in speaking on behalf of the company.
What Is the Fintech Industry?
The companies that fall under the category of fintech industries provide financial applications and services that rely immensely on technology. They use technology to change the ways how customers interact with the financial industry. Why are customers finding fintech as an appealing solution? That is because Fintech usually expands access to financial products that can be purchased at reduced prices. Clients enjoy the perks in the shape of getting faster and more personalized service.
The fintech industry has a variety of applications. Some are used in safely unlocking financial account data like account balances and transactions that enable the customers to track their payments. At the same time, the other type revolves around cryptocurrencies and trade stocks.
Despite making digital processing convenient and secure for their users, the owners of fintech companies land in hot waters upon discovering that their customer’s data has been breached, and then their teams reach out to financial PR agencies to save them from the wrath of stakeholders and customers. Otherwise, overlooking similar blunders can cause a big stain on their reputation and lose their spot in the market.
The Role Of PR In Shaping Fintech Futures
When you hear the term Public Relations, the first few thoughts that might cross your minds are that they come in handy in influencer marketing or gaining control over crisis communication, but the role of PR is not constricted till painting the above-mentioned in a positive light. Fintech companies can sign contracts with them to assist them in spreading awareness and educating their target audience on how is the company tackling the situation in the following ways:
Crafting Educational And Informational Content
Fintech industries have intense investments involved from prominent stakeholders and customers that they cannot afford to lose, therefore they can join hands with financial PR agencies to maintain their reputation.
The teams of the financial PR agencies will craft educational and informational content by making short videos of the owner of the company explaining to the audience what happened and how are they managing the chaotic situation. The videos can be shot and edited with the help of cyber experts to be published on all social media platforms to deliver the message to a maximum audience.
The justifications will assist in breaking down the intricate details of security concepts and clearing myths that will act as an eye-opener for the other users to make their passwords strong, how to identify phishing or spoofing attempts, and explore the digital sphere on a more cautious level.
Besides that, the fintech companies can organize and host interactive workshops with the financial PR agencies in their premises community centers welcoming related financial literacy organizations to add their valuable opinion in enlightening everyone on the floor on how should they incorporate baseline data security in their curriculum so that everyone is well informed regarding the preventive measures to avoid future accidents. Financial PR agencies leave no stone unturned in protecting the fintech companies before they experience serious losses.
Therefore the content prepared by the financial PR agencies serves the purpose of becoming a barrier in the way of data getting leaked.
Power Of Storytelling
A Fintech PR agency is like a powerful wizard whose effective strategies work not till creating educational and informational content but they possess the skill of storytelling as well.
For instance, Robinhood, the fintech company dealt with the challenging situation of the Gamestop Saga in 2021 by constructing a narrative around financial democratization and investor education way long before they found themselves trapped in an emergency. Instead of just sticking to technical solutions, posting videos on social media.
Storytelling plays a pivotal role as it is seen as a human element that when paired with transparency and engagement relaxes everyone linked with the company as the same happened with Robinhood. Their PR’s storytelling technique maintained the trust of the techy-savvy generation that is a prominent chunk of the fintech industry.
Financial PR agencies can sit together with the teams of the fintech company and draw plans for compelling storytelling that include empathy, and understanding of user anxiety not limited to the mainstream technical tactics but with human stories too.
Look for testimonials from cyber experts in the industry and other users and share their experiences in the form of content about how they went through similar breaching incidents, resolved the matters, and re-gripped their financial lives.
Example Of Company
Revolut, a UK-based fintech company faced a major breach in September 2022. The platform had accounts of 50,000 users whose digital vaults were compromised exposing their sensitive information. The news eventually spread like wildfire, taking the attention of all headlines and leaving their stakeholders and customers worried and planning to create their accounts in a more secure fintech company. Since one company reached the danger zone, it provoked other fintech companies to be perceived in the same way.
The company’s image was at stake as it proved that their system was not secure, many names were exposed, and their credit card details got leaked too. It was a state of intense panic. However, Revolut stepped forward and requested their financial PR agency to rescue them. Then things began to become better as the ideas of the PR agency facilitated restoring the trust of the customers. They did their job by showing transparency in communication, taking responsibility for the fault, discussing steps to prevent future breaches, and guaranteeing their clients that they are on the path to strengthening their security remedies.
Conclusion
As we look ahead to the future of fintech, it’s clear that PR will continue to play a vital role in shaping industry dynamics, fostering transparency, and maintaining the integrity of financial innovation. By understanding and leveraging the power of PR, fintech companies can position themselves for success in an increasingly competitive and complex landscape.