for the Digiday Programmatic Marketing Summit, May 6-8 in Palm Springs.
When it comes to getting new customers, startups in financial technology are in a lose-lose situation.
It’s no surprise: The reigning banks have been around for decades so they have a large existing set of customers and streams of data on them from over the years. Their problem is they’re plagued with old infrastructure that slows them down and cuts into their ability to manage data well. Startups don’t have that problem, but they also don’t have the customer base — or the ability to scale.
Customer acquisition is expensive. For a large bank it could cost between $1,500 and $2,000 to acquire one customer, according to Ciaran Rogers, director of marketing at StratiFi, an early stage startup that helps advisors manage portfolio risk. At startups it could be between $5 to about $300 for one customer. Fintechs just have less money to spend on that — at Wealthfront, for example, marketing budgets have decreased every year.
More in Marketing
Baller League’s creator strategy: reach is not the same as fandom
Baller League’s growth strategy: build fandom first, sell franchises second.
Marketers question expensive AI visibility tools as inconsistent results fuel skepticism
Marketers flock to AI visibility tools in a zero-click world. But inconsistent results and a lack of benchmarks are fueling skepticism.
X upgrades its ad platform in long overdue overhaul
This is the platform’s biggest update in its history, having previously been criticized for not keeping up with peers on performance.