Connect with us
Prague Gaming & TECH Summit 2024

Latest News

Has COVID Signalled the End for Cash?

Published

on

 

The rise in online shopping during the pandemic delivered a corresponding decline in the use of cash. Will the COVID-effect be permanent, or will societies be reluctant to forever give up on physical currencies? Leading global e-wallet STICPAY’s Customer Service Director James Bay, thinks the use of cash is coming to end thanks to COVID.

He said: “In 2010 50% of all payments made in the UK were cash and just one in six payments were made with debit cards. By the end of 2017 debit cards were used for more than one in three payments in the UK, so the decline of cash was already being seen. However, the social distancing measures and lockdowns necessitated by the COVID pandemic, have accelerated the move to digital payment methods.

“With many physical businesses being shut for long periods of time, much of our shopping has moved online in the past 18 months, and that has inevitably led to an increase in debit/credit or digital payments. In fact, according to Link, which runs the UK’s cash machine network, the volume of ATM transactions fell 62% year on year at the start of lockdown.

“In Spain the picture was even more stark, with cash volumes dropping by up to 90% during lockdown.

“With many of us getting used to online shopping and other payment methods that don’t involve cash, it is unlikely that we will return to paying for goods with physical currency any time soon.

“Experts had predicted that we would become a cashless society in the next 10-15 years, but that move is likely to have been accelerated by COVID and the milestone could even be achieved in the next year or two.

“And it is easy to see why this would happen. Contactless or digital payments are much less likely to spread germs or viruses and they make social distancing rules much easier to maintain. As we start to reopen our economies, these measures will become even more important to allow us to continue to operate some sort of normal life.

“Small and medium sized businesses who may not have accepted digital payment solutions prior to COVID have been forced to during the pandemic and many are finding it something they prefer. As well as being more hygienic, digital payments are also much easier from an accounting point of view and anything that removes an administrative burden from a small business will always be popular.

“Not having physical cash on the premises also removes the possibility of stores being raided for the money in the till, which is something that is still a major concern for many small businesses.

“But as our finances become ever more digital, we present hackers with more opportunities to gain access to our funds. That is why choosing a payment solution that has high levels of security is vital.

“Digital money transfers also make life potentially easier for international criminal gangs wishing to launder large sums of money. Again, the payment solution and its security protocols are crucial if we want to stop the flow of illegally obtained funds.

“When using an e-wallet the user’s sensitive financial data is always protected, whether it is being used for in-store purchases via a smartphone or for online payments. E-wallets have a layer of advanced encryption that generates a random number sequence for each transaction. Even if hackers manage to intercept the customer’s transaction, they won’t be able to use the data they acquired.

“And stealing the phone used for the e-wallet won’t help the hacker either. They wouldn’t be able to log into the digital wallet account as it is protected with biometrics (face recognition, fingerprints), a PIN, or a password.

“When you consider the benefits of digital payments it is easy to see there are many reasons why they are a better option than cash. COVID may have accelerated our shift away from cash, but it is a shift that was inevitable.”

Fintech

How finance brands can drive the ROI with content creators

Published

on

 

The FinTech industry is highly competitive. In 2017, global FinTech industry revenue was approximately $90.5 billion, and it has grown by over 100% by the end of 2023.

Finance brands are constantly seeking innovative ways to connect with their target audiences, as a result, their marketing channels have also changed. The once-traditional financial sector, often associated with formal advertising, such as billboards, TV commercials, and print advertisements, now commonly uses influencer marketing. 

Today, trust in traditional advertising methods has weakened, and consumers now are turning to sources they perceive as authentic and relatable. Influencer marketing, with its ability to build trust and credibility, has become a common strategy for finance brands aiming to enhance their ROI and their engagement with audiences. At the same time, 67% of brands are increasing their influencer marketing budgets that also proves the effectiveness of this channel. 

The rise of influencer marketing in finance

Influencers’ recommendations are highly effective, with 92% of consumers trusting influencers more than traditional advertising channels. Social media platforms have further amplified the impact of influencer marketing, allowing influencers to engage directly with their audiences and foster trust within niche finance communities. 

Influencer marketing is commonly used by such companies as Binomo, Olymp Trade, Ego, Klarna, Exness, Pay Senger, Capital.com, and many more. If you are interested to see the example of a strategy, here is how Famesters helped FxPro drive 18K+ installations and more than 18M views.

Trading services, especially those strongly connected with cryptocurrencies, get the largest influencer marketing budgets among finance brands. According to Famesters, in 2022 Binance was the top-mentioned finance brand on YouTube.

Choosing the right influencers

Selecting the right influencers is key to the success of influencer marketing campaigns in any business sector, and it is especially crucial for the finance sector due to its specificity. To find the right influencers with authentic audiences, you have to spend time and resources. But if aligned with a creative strategy, such publications can pay off greatly: brands can earn around $5.78 for every dollar spent on influencer marketing. Here are some key considerations to pay attention on: 

  1. Alignment with brand values. This ensures that the influencer’s content will reflect the brand’s mission, maintaining consistency in messaging.
  2. Target audience compatibility. Effective influencer marketing hinges on reaching the right audience. Finance brands should thoroughly analyze an influencer’s follower demographics to ensure they match the intended target audience. For instance, promoting credit cards to young adults may require influencers with a predominantly youthful and financially active audience.
  3. Domain expertise. In the world of finance, domain expertise is a significant asset. Influencers who demonstrate a deep understanding of financial matters and can communicate complex topics in a clear and accurate manner are considered to be the best choice to cooperate with. 

Not all financial products are best promoted by financial influencers. For instance, if you’re marketing a banking product designed for children, it’s more effective to collaborate with influencers who are able to reach the parents of potential users. Similarly, for B2B financial products like business bank accounts, it makes more sense to partner with influencers who cater to entrepreneurs rather than those focused on personal finance or budgeting advice.

  1. Engagement and trustworthiness. High engagement rates, authentic interactions, and a track record of trust-building are indicators of an influencer’s effectiveness in conveying messages and recommendations (that are crucial for finance brands). Besides, the FinTech creators market is full of fraud and scam, this is why it is worth taking time and ensuring the quality of potential partners.

Ask for a screencast of the creator’s statistics instead of a screenshot if you have doubts; a trustworthy creator would provide it, and if the statistics are fake, the influencer will likely refuse.

  1. Content quality. FinTech brands should assess an influencer’s content quality and relevance to ensure it aligns with their campaign goals. Consistency in producing valuable, informative, and engaging content is key. 

You can analyze around 10-15 of the latest videos on the channel, review the comments, and ensure that they have not been purchased from a shady website. For example, when you come across comments such as “Yes sir,” “Great video,” “Thanks!”, “Love you man!”, “Quality content,” etc., they should raise red flags, as these are most likely bot-generated comments.

  1. Past collaborations and reputation. Examine an influencer’s past collaborations and reputation. For instance, if a FinTech company partners with an influencer known for promoting risky investment schemes in the past, or associated with controversial practices, it could harm the brand’s credibility and integrity. 

Besides choosing the right creators for your campaign it is also crucial to craft a well-thought brief – a clear communication tool that helps convey your app or platform’s value. Provide influencers with guidelines on your brand message, goals, budget, and content expectations, including tone of voice and key messages. Trust influencers to communicate naturally while ensuring essential ad points are covered. 

Influencer fraud risks and how to reduce them

Influencer fraud is actually decreasing year by year as more tools to detect it appear and improve. But still, 64% of companies name influencer fraud an issue that worries them. And yes, there are significant risks that can be divided into two major categories: distorted ROI and brand reputation risks. 

 

Distorted ROI:

 

  • Brands engage with influencers expecting benefits like enhanced brand recognition, sales boosts, or greater audience interaction. However, influencer fraud distorts these projections. 

 

  • Investments in influencers who have artificial followers or engagement don’t deliver tangible outcomes, resulting in a reduced ROI.

 

Brand reputation risks:

 

  • In the finance market where authenticity is highly valued by consumers, the discovery of deceit by an influencer connected to a brand can breed doubt, not only about the influencer but also about the brand itself. This association can damage the brand’s reputation and weaken trust with its audience.

 

Influencer fraud in the FinTech sector doesn’t just affect individual campaigns; it threatens the integrity of influencer marketing as a whole. In an industry built on trust and precision, deceptive practices have far-reaching consequences, making vigilance and informed decision-making imperative for FinTech brands.

 

To avoid fraudulent influencers and reduce risks, finance brands should prioritize vetting influencers. To do so, brands can:

 

  • Review content history, engagement rates, and alignment with brand values. 

 

  • Look for genuine audience interaction and content that resonates with your brand’s message. 

 

  • Engage directly with influencers to grasp their audience’s age, gender, and location. 

 

  • Seek personal stories of audience interactions, indicating authentic connections.

 

Here are some FinTech brands’ self-audit tips:

 

  • Engagement analysis. Check the ratio of followers to engagement; low engagement with high followers is a warning sign.

 

  • Audience location. Be wary of influencers with most followers from regions irrelevant to their supposed base.

 

  • Content evaluation. Genuine influencers mix sponsored and organic content, showing true interest in their niche.

 

  • Feedback checks. Seek testimonials from other brands or agencies.

 

  • Consistency. Authentic influencers show regular posting and engagement patterns.

 

And last but not least: for brands venturing into influencer marketing, especially in sectors like FinTech where trust and credibility are essential, the importance of formalizing collaborations through contracts cannot be overstated. Contracts serve as a foundational safeguard against influencer fraud, clearly delineating expectations, deliverables, and terms of engagement. This formal agreement helps to ensure that both parties are accountable and that the influencer’s following and engagement metrics are authentic and aligned with the brand’s objectives. Contracts also provide legal recourse in the event of misrepresentation or non-compliance, significantly reducing the risk of financial loss and reputational damage. 

 

A well-structured contract is not just a formal requirement; it is a strategic tool in mitigating the risks associated with influencer fraud, ensuring transparency, and maintaining the integrity of the brand’s marketing efforts.

Conclusion 

You can see that the success of influencer marketing in the FinTech sector hinges on a strategic and analytical approach. Its key aspects include:

  • Selective influencer engagement. Choosing influencers with a deep understanding of financial products and alignment with brand values is crucial for effective audience engagement.

 

  • ROI and risk management. It’s vital to employ robust analytics for assessing influencer authenticity to mitigate risks to ROI and brand reputation.

 

  • Audience and content analysis. Detailed examination of the influencer’s audience demographics and content relevance is essential for ensuring alignment with the brand’s target market.

 

  • Adaptive strategies. Staying adaptive to the evolving digital marketing trends and consumer behaviors in the fast-paced FinTech industry is key.

 

Effectively navigating these elements can significantly enhance ROI and market positioning for FinTech brands in an industry that values innovation and trust.

Continue Reading

Fintech

Revolutionizing Play and Pay: Fintech Leader Ibanera Redefines Financial Dynamics for the Gaming Sector

Published

on

 

Ibanera, an online fintech institution, announces an exciting array of gaming-focused financial services- a fully optimised suite of applications designed to align with the evolving financial paradigms within the global gaming industry.

In the realm of electronic gaming, where a staggering $400 billion was amassed in 2023, poised for sustained growth, a transformative shift in revenue generation is underway. The prosperity of contemporary games is intricately linked to in-app purchases, compelling game developers and publishers to explore innovative economic models. This exploration extends into the realm of tokenized digital assets within games, tradable assets stemming from in-app transactions, and unprecedented opportunities for professional gamers to prosper through a sophisticated play-to-earn framework

Ibanera’s strategic initiative materializes through a portfolio of services, notably featuring the introduction of PORTL, a solution meticulously designed for buying and selling digital assets. Moreover, Ibanera extends white-label solutions to gaming entities, facilitating the seamless integration of embedded payment tools for web3 game developers. The compatibility with blockchain and provision of multi-currency accounts underscore Ibanera’s unwavering commitment to delivering a suite of services that transcend conventional financial norms.

This venture represents a substantial investment for Ibanera, propelled by the strategic vision of CEO Michael Carbonara. In his statement, Carbonara remarked, “We are addressing the pressing need for heightened functionality within gaming companies. The pace of evolution in the gaming industry has surpassed the capacities of traditional banking institutions.”

The company’s foray into gaming-focused financial services signifies a significant milestone at the intersection of fintech and gaming, positioning the institution as a vanguard in an industry undergoing unprecedented transformation. The suite of applications not only addresses current demands but also strategically anticipates and caters to the future financial intricacies that will define the gaming experience.

Continue Reading

Fintech

Fwd: Portuguese bank BPI, subsidiary of CaixaBank group, launches AGE Planet Craft Tycoon, a game developed for the Roblox platform

Published

on

 

Today, the bank BPI, Portuguese subsidiary of CaixaBank group, launches AGE Planet Craft Tycoon, a game developed for the Roblox platform, inspired by financial education and sustainability concepts, targeting young audiences. Roblox is one of the largest immersive gaming platforms in the world, with around 70 million daily active users. The game is available here: https://www.roblox.com/games/15042392733/AGE-Planet-Craft-Tycoon

The experience unfolds in a galaxy where players embark on a journey on a deserted planet. The aim is to make strategic investments in resources to develop the planet in a sustainable way. Players can interact, socialise and visit other players’ planets. The financial education component associated with the game features, among other concepts, a bank where players can exchange resources for their planet’s development or invest resources in applications that simulate, in a simplified manner, the behavior of financial applications.

According to Afonso Eça, executive director responsible for innovation: “Virtual worlds, whether on Roblox or other platforms, are increasingly popular, especially among younger users. With this launch, we aim to explore another channel for our customers to engage with the AGE brand.”

The game contributes to the expansion of the BPI AGE brand, aimed at young people up to the age of 25. Young AGEs have access to various financial services at no cost or bureaucracies and have a dedicated platform in the BPI App and a space in the BPI VR immersive shop.

This project was developed in partnership with Simple Magic, a videogame studio from Estonia, focused on designing and developing games on Roblox and bringing the best brands to Metaverse.

BPI strengthens metaverse/web3 holistic strategy

Over the past year, BPI has launched several innovation projects focused on metaverse/web3, addressing three dimensions: (1) immersive and augmented realities as a new way to interact with customers; (2) custody and transaction of digital property supported by blockchain technology; and (3) position the bank in virtual worlds, which are attracting more users worldwide.

According to Francisco Barbeira, BPI executive board member, “The game AGE Planet Craft Tycoon is the final component of a strategic learning path we are undertaking in the metaverse. In the three dimensions we consider relevant, we already have initiatives underway, and the learning process has been very enriching. As of today, we can say that BPI has indeed a holistic presence in what we call the metaverse.”

In 2022, the bank launched BPI VR, its immersive reality application where customers and non-customers can experience interaction with the bank through this technology. Last month, BPI launched D-VERSE, its digital collectibles platform where digital property can be transacted in Euros, with custody provided by the Bank itself. Now, the launch of AGE Planet Craft Tycoon marks the entry into virtual worlds.

 

Continue Reading

Trending