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How Fintech Companies Can Save 300% By Marketing on TikTok

Michael Waters
July 27, 2022
TikTok's over 1 billion active users are very appealing for fintech companies. Here's how fintech's can reach those people.
Image from thegaurdian.com

Dozens of fintech companies—from digital banks to buy now, pay later services—have flocked to TikTok over the past year. Startups like Plum, Tally, Starling Bank, Chime, and Revolut have all run effective campaigns on the app. 

That's because the target audience of TikTok is so appealing to fintech companies. The app now boasts over 1 billion active users. Many of those users are millennials to new adults like Gen Z, and they are learning how to:

Tally, a fintech company for debt management, started running ads on TikTok in 2020 and said that TikTok videos far outperformed Instagram posts in driving app downloads. Tally said that ads on TikTok cost them 300% less than ads on Instagram for the same result.

What is FinTok? 

Finance TikTok—sometimes called FinTok—is a loose network of people who work in finance and do day trading on Wall Street. These can be people ranging from full-time financial advisors, Certified Financial Planners (CFPs), to even those who work with regulators.

The typical FinTok account usually dedicates itself to breaking down market trends, offering personal finance tips to young people, or some combination of the two. The best ones even prevent users from falling for financial misinformation and get-rich-quick scams.  

Influencers Offering Financial Advice and News on TikTok

Some important FinTok influencers include: 

When influencers offer financial education and reference specific fintech companies, the results are impressive for the recognized brand.

When Hankwitz mentioned the investment robo-advisor Betterment in one of his videos, he drove 10,000 new signups to the app in a single day. 

Example of #Fintok influencers. (Image from businessinsider.com)

Are Fintechs Companies Allowed to Be On Tiktok?

The answer is yes—with restrictions. In 2021, TikTok placed tighter regulations on which financial services companies could work with influencers.

Understanding the nuances is essential. For one thing, all financial services companies that collaborate with influencers have to ensure that the influencer clearly labels each post as sponsored, according to TikTok.

There are other restrictions, too. In its rules for the U.S. and Canada, TikTok allows banks, debit cards, credit cards, and insurance companies to run branded content on the app on a case-by-case basis, which means they can work with influencers

But it places stricter restrictions on companies that offer loans and buy now, pay later companies.

These latter companies are only allowed to run ads on TikTok. They can't collaborate with influencers on branded content unless those posts appear on the company's feed. 

How Can Financial Services Brands Use Fintok?

Most fintech companies on TikTok have taken an influencer-first approach. They form partnerships with existing FinTok influencers to talk about their products or run ads aimed at finance-minded users. 

Even the buy now, pay later company Klarna, which has 52,000 TikTok followers, mostly fills its feed with content that other influencers have created for the brand. 

So far, fintech companies that create their content on TikTok are few and far between. One good example is Plum, an automatic savings app, which uses its account to remix memes about investing strategies or savings. 

Popular Finance brands such as Klarna, Plum, and Chime have a presence on TikTok.

What Else Should You Know?

No matter the approach, brands need to answer questions directly on TikTok. Inquiries involving a fintech brand's capabilities and knowledge of financial topics like cryptocurrency (Bitcoin, for example), compound interest rates, and even index funds require competent customer support.

Chatdesk Teams provides knowledgeable customer support teams who respond to TikTok comments, ensuring that curious viewers can convert into paying customers. Schedule a demo here to see it in action.

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