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How Should The Fintech Industry Approach Communications In A Recession

Public relations used to be the first to suffer budget cuts in a recession. That’s not the case anymore. Amongst the significant shifts – we’re seeing some sectors and companies focus on quick wins over the longer-term foundational building as they face difficulty raising funding, pressures on profitability and a general sense of gloom and doom. But the value of strategic PR communications and reputation management is more apparent than ever, especially for the fintech industry.

Asian fintech, in particular, is proving to be a resilient sector, even amidst macroeconomic headwinds. Investment in the region hit a record high of US$50.5 billion in 2022, and the outlook remains bright, with incomes continuing to rise and adoption of digital technology expanding. Equally, perhaps businesses have learnt something from past economic downturns – rather than cutting spending, they’re staying the course in the hopes of reaping more significant rewards in the long-term.

Whether you’re a big, established player or a rising startup, communications will continue to play a vital role in building a lasting and distinct brand presence. After all, a brand that gets remembered gets used.

The State of Fintech Communications

Despite fintech companies continuing to invest in public relations and communications, budget constraints remain a common challenge. Many want to do more with less, while others are bogged down by long contractual lead times, sometimes by as much as six months. In these situations, we urge brands to move away from large-scale, splashy events and product announcements and focus on strategic storytelling via:

  • Social Media Storytelling: Leverage social media content services to craft engaging narratives that resonate with your target audience. Platforms like LinkedIn, Twitter, Instagram, and even TikTok can be powerful tools for building brand awareness and prestige within the fintech community and the general public.
  • Thought Leadership Content: Invest in high-quality content that positions your company as an industry authority. White papers, in-depth blog posts, and research reports showcase your expertise and build credibility with potential investors and customers.
  • Proactive Media RelationsDon’t wait for journalists to come to you. Develop a media relations outreach strategy that targets relevant publications and journalists. Build relationships with key reporters and offer them valuable insights and stories that align with their readership.

Addressing Asian Fintech’s Media Gap

Media relations are proving especially important when tackling another critical challenge – Southeast Asia’s shrinking mainstream media pool and a financial media that skews its coverage toward more traditional industries. 

Despite being a hub of business and economic activity, Singapore, for example, is now dominated by two publishing houses – Singapore Press Holdings (SPH) and MediaCorp. This makes it challenging to land coverage, moreover with fewer correspondents and a lack of actual “beat” reporters, understanding of emerging fintech business models and crypto remains woefully low.

Our advice to counter both issues is the same – double down on your owned media channels, whether through short-form content on social media or long-form content on your website and app. By doing so, you can control your brand narrative, build direct relationships with your audience, and establish yourself as an industry leader.

For example, HitPay – the payment gateway solution for SMEs in Singapore – is excellent at B2B outreach. Although the company scaled fast, it remains accessible through a direct, personalised, multi-platform approach that feels genuine and resonates with its audience.

Indeed, scaling owned content efforts couldn’t come at a better time, with one industry study citing business as the “only global institution to be both competent and ethical”. In other words, people trust businesses more than they do other sources, highlighting the importance of building direct relationships with your audience through owned channels.

Crisis Communications: A Non-Negotiable

Finally, don’t scrimp on crisis communications. No business wants to be in a sticky situation – but having a robust crisis management plan is critical to coping with unexpected events and challenges. This encompasses developing a crisis communication plan that outlines roles, responsibilities, and communication protocols; proactively monitoring for potential risks and vulnerabilities; and responding quickly and transparently to any crisis.

This is as true for fintech upstarts navigating evolving regulations as it is for established banking and financial institutions facing market, credit and operational exposures. By proactively addressing potential crises, you can protect your brand reputation and maintain stakeholder trust.

The Elephant in the Room

As I write this, public relations agencies and communication professionals are grappling with rapid advancements in artificial intelligence (AI) technology, with one recent study by Sandpiper finding 65% of comms leaders predicting AI’s transformative impact on the PR industry. Yet, industry leaders are not acting quickly enough to capitalise on the opportunities (58%) or manage the risks (59%) posed by AI.

This hesitation is understandable. While AI offers powerful tools for analytics and idea generation, its role in fintech communications requires careful consideration. Finance ministries and regulatory bodies typically have strict guidelines regarding financial information and marketing practices. Therefore, while AI can assist with various tasks, human expertise and judgement remain essential for navigating the complexities of fintech public relations, marketing and comms.

What is more apparent is that layering compelling ideas and subject matter expertise with a unique tone and voice keeps readers interested, especially in highly-regulated industries.

The communications landscape is changing rapidly, and the stakes are high – but so are opportunities for those willing to take them. By embracing a strategic approach to fintech PR, crisis communications, and reputation management, you can navigate unexpected obstacles and build a resilient brand that thrives even in challenging economic times.

This article first appeared in Campaign Asia.

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