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Which Fintech companies are spending the most on consumer and small business marketing?
Hi! Thank you for your request to research which Fintech companies are the biggest spenders on consumer and small business marketing.
The short version is that WorldRemit and TransferWise are the biggest spenders on marketing. Also, the top 10 companies in the 2016 FinTech 100 list dealing with and marketing to small businesses are Funding Circle, (13) Square, (14) Xero, (17) Kabbage, (29) Spotcap, (30) OnDeck, (31) Prospa, (35) iZettle, (39) PINTEC, and (49) Payoneer.
Below you will find a deep dive of my research along with methodology and description of results.
METHODOLOGY
To answer your query my colleague and I looked for industry reports on the Fintech sector with a focus on marketing budgets, specifically those geared towards consumer and small businesses. Our resources included the 2016 Fintech 100 list, the Fintech Marketing Report 2014, and Business Insider. Please read on to see the results.
2016 TOP 100 FINTECH
H2 Ventures ranked fintech companies around the world based on global research and analysis to build the 2016 FinTech 100. According to their analysis, the top 10 companies in the Fintech100 are (1) Ant Financial, (2) Qudian, (3) Oscar, (4) Lufax, (5) ZhongAn, (6) Atom Bank, (7) Kreditech, (8) Avant, (9) Sofi, and (10) JD Finance.
The group based their rankings on factors namely total and rate of capital raised, geographic and sectorial diversity, and X-factor. However the report did not include marketing budgets in their research. On further analysis, I determined that the top 10 companies in the list dealing with small businesses (and therefore marketing to this target audience) are (2016 Fintech 100 rank no.12) Funding Circle, (13) Square, (14) Xero, (17) Kabbage, (29) Spotcap, (30) OnDeck, (31) Prospa, (35) iZettle, (39) PINTEC, and (49) Payoneer. You can see these companies' profiles and descriptions in the full report.
FINTECH MARKETING REPORT
Finextra Research published the results of the FINTECH MARKETING REPORT 2014 showing that only 2% had marketing budgets of $50 million and above. Another 2% reported a marketing budget of $10 million to $50 million, while majority (21.6%) reported a marketing budget of $1 million to $10 million. Regarding target audience, 35.3% of participants said they market to small and medium-sized businesses while 33.3% affirmed they market retail banking products to consumers. The report did not name its participating fintech organizations. However, it divulged that 19.6% are in the top group earning an annual revenue of $1 billion and above, while majority (84.3%) are long term industry participants with 10 years or more of experience.
WORLDREMIT AND TRANSFERWISE
According to Business Insider, WorldRemit and TransferWise are two of the hottest fintech startups from London, valued at $500 million and $1.1 billion respectively. The two fintech companies made headlines this year with the unveiling of their mega marketing budgets. TransferWise revealed that its £12.3 million marketing spend was its biggest single expense, though it did not disclose as to what category or geography it spent its marketing euros on. WorldRemit revealed in turn that it spent £15.4 million on customer acquisition and advertising to consumers. Business Insider adds that WorldRemit's clients used the fintech app to send cash overseas 3.5 million times in 2015 alone.
CONCLUSION
To wrap it up, WorldRemit and TransferWise are the biggest spenders on marketing. Also, the top 10 companies in the 2016 FinTech 100 list dealing with and marketing to small businesses are Funding Circle, (13) Square, (14) Xero, (17) Kabbage, (29) Spotcap, (30) OnDeck, (31) Prospa, (35) iZettle, (39) PINTEC, and (49) Payoneer.
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