Influencer marketing is becoming increasingly prevalent, but a lack of regulation relevant to its use in the finance market could put firms in jeopardy.
By 2022, companies involved in influencer marketing are estimated to spend up to $15 billion. Many industries benefit from influencer marketing, and several B2B and B2C companies now depend on influencers to expand their scope. The financial sector isn’t immune to this development, and several digital banks are now employing influencer marketing strategies. Influencer marketing, on the other hand, necessitates due consideration, and there are some rules that FinTech firms must adhere to.
Influencer Marketing Will Help Fintech Companies
Influencer advertising can be as helpful to the financial sector as it can to any other company, as long as the celebrities are chosen to match the niche. Influencers have the ability to increase a company’s scope and exposure, show authority, and quickly target the right market. This is an important commodity for any FinTech company, but to get the most out of it, companies must select Crypto Influencers whose lifestyle and message aligns with the brand’s philosophy. When used properly, this will allow FinTech companies to reach a far broader audience than they could with conventional ads. Despite the fact that state regulatory authorities have standards for marketers, none of them directly apply to financial goods or services, so those from the niche must tread carefully.
Influencer Advertising Laws
According to advertising rules, influencers can tag every paid post with the hashtag “#ad”: this is the bare minimum an influencer could do to lawfully advertise a product or service. They must take into account the demographics of their target audience, as age-restricted items cannot be marketed to children. While this law does not explicitly apply to financial goods and services, businesses and the influencers they deal with must be mindful of the audience’s trends, since many financial products have age-related requirements.
Financial Services Are Not Controlled
There are no rules in place for FinTech firms that use Blockchain Influencer Marketing , which is problematic since an influencer’s scope is mostly limited to a teenage audience. Influencers’ marking of advertisements is currently the subject of advertising guidelines, rather than the goods and services they’re endorsing. Close collaboration between the advertisement and financial regulators would be needed for regulations to be created, but this has not yet occurred. Although this is positive thing for FinTech firms who can find influencers to market their goods, it is a concern for customers. The perfect situation is for influencers to sincerely believe in the brands they support. However, because of social media’s algorithms, it’s difficult to tell whether influencers or the companies they collaborate for are fully aware of what they’re endorsing. As a result, before making a purchase, consumers should study all items promoted by influencers.
Blockchain Influencer Marketing is one of the most popular marketing techniques an organization can use, but there are few limitations. This is especially troublesome in the financial sector, where there are ethical problems to consider when supporting any financial service or product. As a result, while influencer marketing can be a useful tool for a FinTech business, customers should be cautious when purchasing products recommended by influencers. Influencers, on the other hand, may be useful in educating customers about new financial products if they perform independent analysis.
Find more information relating to crypto influencers, and blockchain influencer marketing here.
