Why FinTech companies in Hong Kong need to prioritise communications
Communication is a central part of successfully growing a financial technology (FinTech) start-up.
Good communication tells a coherent, credible and purposeful brand story – an important differentiator for FinTech companies.
Hong Kong is pushing the development of the FinTech industry, whose companies span areas such as InsurTech, RegTech, payments, WealthTech, cryptocurrencies and more.
As the value and relevance of financial technology (FinTech) has increased, Hong Kong’s government and financial industry have launched a variety of initiatives and incentives to develop the city as a FinTech hub.
And it’s been working. The city boasts a host of companies, some of them so-called ‘unicorns’, across a range of FinTech sectors, including InsurTech, RegTech, payments, WealthTech and cryptocurrency. The city’s shift toward FinTech is a strategic move in an increasingly competitive global financial context.
However, the other half of the equation is the competitiveness of the FinTech companies themselves. Part of that competitiveness lies in their product and its ability to satisfy the needs of the market.
But an under-appreciated dimension of growing a FinTech startup is the ability to communicate its value effectively. The case for developing a strong FinTech communications strategy has three dimensions:
1. Coherence: Articulating the value of a FinTech brand is easier said than done. Explaining how it works, who it serves, and how one can go about adopting it is one part of the communication puzzle. The other is making sure that the same clarity is preserved across communication channels, both internal and external – hence the importance of coherence in a company’s messaging, which is essential to building brand recognition.
2. Credibility: Telling a FinTech company’s brand story coherently, as well as explaining the value it delivers for stakeholders, builds credibility. Or, put another way, it builds brand equity, based on a company’s favourable perception in the market – a critical advantage given the kinds of assets FinTech companies handle. Credibility through communications is complementary to the credibility derived through quality products and service. In other words, they are mutually reinforcing. Communications tells the story of a company’s brand promise; the product or service fulfils that promise.
3. Purpose: Brand purpose has been increasing in importance in recent years. As FinTech markets become saturated, having a well-defined brand purpose can be a differentiator for companies. Communications is central to this process. A company’s purpose should shine through in its messaging, its content and even the ways in which its employees speak about the company and their work.
The nature of the FinTech sector means that a company’s products and services need clear articulation. Such articulation then needs to fit into a coherent story that builds credibility and reflects that company’s purpose and ethics.
To achieve this, FinTech start-ups, especially in competitive markets like Hong Kong, are encouraged to invest wisely in communications. The returns from doing so may come as a surprise to even the most competitive brands.