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WHY FINTECHS NEED TO TELL BETTER STORIES
It’s a fact: brands that tell better stories sell more, fetch higher multiples, and secure larger valuations. 55 per cent of consumers are more likely to buy from a brand if they love its story (Headstream). Meanwhile, research from McKinsey suggests that companies with strong brand narratives can achieve valuation premiums of up to 20 per cent.
The demand for innovation remains strong, but fintechs are failing to articulate their value in a way that resonates with consumers and investors alike. Too often, they get lost in technical jargon and financial metrics, neglecting the power of a compelling narrative. Let’s take Klarna as an example. The Swedish buy now, pay later giant has been one of the most successful fintech brands, and much of its success can be attributed to its storytelling. CEO Sebastian Siemiatkowski has been heavily influenced by master storytellers like Richard Branson and IKEA founder Ingvar Kamprad. He understands how to capture attention. His partner is a digital marketing expert, and he is a charismatic, articulate leader – qualities that matter when shaping a company’s public image. The fintechs that will truly thrive will be those that can capture attention, inspire confidence, and engage their audience with compelling narratives
another buzzworthy topic that ensures Klarna stays relevant in fintech conversations. These narratives generate headlines, attract investors, and keep Klarna top of mind.. But here’s the catch: are these just stories? Klarna has had to downsize, cutting jobs in what was likely a necessary move to improve profitability ahead of a potential IPO after bloating during the fintech bubble. Its AI push might be more about cost-cutting than innovation. And its crypto announcement was so vague that it left many questioning whether Klarna had a meaningful strategy in that space at all. It doesn’t matter as much as the story does. The fintech market will bounce back. As interest rates decline, consumer spending will increase, investors will become more willing to deploy capital, and public markets will once again court major fintech players. But when that moment comes, it won’t be enough to have a strong product or even solid financials. The fintechs that will truly thrive will be those that can capture attention, inspire confidence,
WHAT DOES THIS MEAN FOR FINTECHS?
The fintech industry has taken a beating in the last few years. Once the darlings of investors and the innovation economy, fintech companies are now facing a harsh reality. The market is congested, regulatory scrutiny is increasing, and the days of prioritising hypergrowth over profitability are over. Depressed valuations have led to an influx of mergers and acquisitions as weaker players struggle to survive. In short, fintech has a PR problem. But here’s the thing: fintech still has enormous growth potential. Global fintech revenue is projected to grow at a CAGR of 16.8 per cent, reaching $1.5trillion by 2030, according to Boston Consulting Group. Look at Nubank in Brazil, which has amassed over 90 million customers, making it one of the world’s largest digital banks. In the UK, neo-banks like Revolut and Monzo continue to grow despite economic challenges.
and engage their audience with compelling narratives. Fintechs need to tell better stories. https://ccgrouppr.com
Klarna’s storytelling prowess is evident in its recent narratives.
Siemiatkowski has positioned Klarna as an ‘AI-first’ company, a hot topic that aligns with the broader discourse on artificial intelligence and automation. He’s also publicly embraced crypto,
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