# 2021 and the fintech market bonanza
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-10-14
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: 2021: The Golden Age for Fintech IPOs
Meta Description: Discover how fintech companies are revolutionising the financial industry with innovative digital solutions, outperforming traditional banks in the market.
URL: https://financedigest.com/2021-and-the-fintech-market-bonanzahtml

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_By **Mike Rhodes,** CEO and Founder of_ [_ConsultMyApp_](https://www.consultmyapp.com/?utm_source=financedigest&utm_medium=referral)

![Mike Rhodes, CEO and Founder of ConsultMyApp](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/a4-1736837559767-compressed.jpg)

The Covid-19 pandemic has caused unprecedented disruption for many businesses, however, the fintech market has remained steadfast in its growth. In fact, 2021 has become the golden age for fintech IPOs. For example, [RobinHood Markets Inc](https://www.nytimes.com/2021/07/29/business/robinhood-ipo.html) debuted with one of the largest recorded listings for a fintech company – valued at $32 billion on July 29th 2021.

With the global fintech market predicted to reach a value of [£380 billion](https://www.theglobalcity.uk/PositiveWebsite/media/research-downloads/KalifaReviewofUKFintech.pdf) by 2030, this boom is showing no signs of slowing.

Whilst the fintech market has become one of the fastest-growing sectors of our economy, established banking institutions now find themselves in hot water. If they are to truly rival new market players like Revolut or Tide, they must [innovate their digital](https://www.financedigest.com/digitalisation-why-using-the-opportunity-of-fintechs-can-create-an-innovative-digital-client-experience.html "Digitalisation: why using the opportunity of Fintechs can create an innovative digital client experience") offering. Yet, despite their efforts, traditional [banks are failing at the in-app experience and still struggling](https://www.financedigest.com/uk-banks-and-insurers-told-to-step-up-help-for-struggling-customers.html "UK banks and insurers told to step up help for struggling customers") to create true differentiation in an increasingly saturated market. Instead, fintech companies continue to outperform them, providing a ‘one-stop-shop’ for customers’ [financial needs](https://www.financedigest.com/cfos-need-a-focus-on-forex-in-financial-planning-tools-accountagility-reveals.html "CFOs need a focus on forex in financial planning tools, Accountagility reveals").

So, how have fintechs rapidly gained market authority in a typically ‘closed shop’ sector?

**The Digital Transition**

The past 18-months have triggered a rapid acceleration of the shift online. For example, digital banking has seen a significant increase in uptake, with [73%](https://www.finextra.com/blogposting/19894/are-consumers-becoming-used-to-a-bank-being-an-app-rather-than-a-building) of British consumers now embracing e-banking offerings.

As lockdown and social distancing restrictions hindered in-person sales and services, customers increasingly turned to [fintech’s as a more convenient and efficient way to manage their finances](https://www.financedigest.com/3-key-ways-you-can-transition-from-finance-to-fintech.html "3 key ways you can transition from finance to fintech"). This digital transition is now set to continue to transform the financial [services sector as the world re-evaluates traditional forms of banking](https://www.financedigest.com/britain-seeks-to-boost-banking-services-from-fintechs.html "Britain seeks to boost banking services from fintechs") and the personal finance revolution continues to gain traction.

**Customer Acquisition Strategies**

Amid this backdrop, fintech [companies have remained at the forefront of consumers’ minds and developed a strong and sustained](https://www.financedigest.com/green-cloud-one-way-your-company-can-commit-to-sustainability.html "Green Cloud: one way your company can commit to sustainability") customer base.

Whilst traditional banks remain focused on marketing campaigns that drive individual downloads, [fintechs have set themselves apart with effective user acquisition strategies](https://www.financedigest.com/attacking-banking-and-fintech-fraud-head-on-through-ai-infused-strategies.html "Attacking Banking and Fintech Fraud Head-On Through AI-Infused Strategies "), centred around a simple onboarding processes. Industry leaders have acknowledged that a more [streamlined sign up process](https://www.financedigest.com/alzheimers-research-uk-streamlines-cheque-processing-with-checkprint.html "Alzheimer’s Research UK Streamlines Cheque Processing with Checkprint") makes it easier to acquire new users through paid channels.

As a result, fintechs continue to achieve high levels of uptake by appealing to new users with their [account activation and login mechanics which require](https://www.financedigest.com/whats-required-of-accounting-to-build-a-better-tomorrow.html "What’s required of Accounting to build a better tomorrow") only the most relevant information. In contrast, traditional [banks have failed to acknowledge that onboarding and overloading do not need](https://www.financedigest.com/what-banks-need-to-do-right-now-to-improve-their-digital-services-without-sacrificing-security.html "What Banks Need to Do Right Now to Improve Their Digital Services Without Sacrificing Security ") to go hand in hand. Simplicity is key here and until established banks accept this narrative, new market players will continue to outperform them in the digital space.

**Effective [App Store](https://www.financedigest.com/apple-given-fourth-dutch-fine-in-app-store-dispute.html "Apple given fourth Dutch fine in App Store dispute") Optimization**

Another contributor to the success of fintechs lies in their App Store Optimization strategy (ASO) which remains at the forefront of the agenda. In fact, for [Tide](https://www.tide.co/), the UK’s leading business financial platform, ASO and Apple Search Ad (ASA) strategies proved to be crucial in driving new business account signups.

[ConsultMyApp](https://www.consultmyapp.com/?utm_source=tbtech&utm_medium=referral) worked strategically with Tide to improve all elements of ASO, whilst ensuring it was fully synchronized with their Apple Search Ad campaigns. This resulted in Tide’s organic install volumes rising by 140 per cent over just three months, demonstrating how valuable these tactics can be.

By concentrating on ASO, fintech companies improve traffic from [organic searches and increase overall conversation rates to boost the efficacy of their paid](https://www.financedigest.com/organic-vs-paid-promotion-why-the-perfect-mix-eludes-you.html "Organic VS Paid Promotion: Why the perfect mix eludes you") channels. In a saturated market, ASO is quite simply a [must to ensure](https://www.financedigest.com/finance-firms-must-ensure-they-fix-data-fundamentals.html "Finance firms must ensure they fix data fundamentals") a company can compete against the competition and sustain market momentum.

**Customer Retention Strategies**

[Fintechs have also acknowledged the value](https://www.financedigest.com/fintech-incubation-more-value-than-meets-the-eye.html "FINTECH INCUBATION: MORE VALUE THAN MEETS THE EYE") in establishing a comprehensive user retention strategy. These apps prioritise the user [experience to remain competitive and retain customers](https://www.financedigest.com/how-partnerships-fuel-fintech-innovation-and-help-banks-deliver-a-better-customer-experience.html "How Partnerships Fuel Fintech Innovation and Help Banks Deliver a Better Customer Experience"). They ensure that from the very first moment an individual logs into the app, their experience is slick and convenient – and this includes communication pathways. These new market players are extremely self-aware when it comes to their communication strategy – knowing how much communication is too much.

Findings suggest that push notifications can in fact double the 30, 60 and 90-day retention of customers, but they should be handled with caution. If executed poorly, push notifications can become intrusive and force users to abandon the app altogether. Yet, [fintechs seem to be getting the balance](https://www.financedigest.com/fintech-and-compliance-managing-the-eternal-balancing-act.html "Fintech and compliance: Managing the eternal balancing act") right – targeting the right people at the right time and with the right information.

[Fintech companies are currently leaps and bounds ahead of established banking](https://www.financedigest.com/fintech-v-the-banks-uneasy-bedfellows-or-a-match-made-in-heaven.html "FinTech v the Banks: Uneasy Bedfellows or a Match Made in Heaven?") institutions when it comes to producing personalised content. By utilising in-app and external data, [fintechs have been able to adapt and innovate the user experience](https://www.financedigest.com/fintechs-how-to-increase-loyalty-through-user-experience-and-fraud-prevention.html "FinTechs: How to increase loyalty through user experience and fraud prevention") according to specific preferences and interests. By pairing app and message personalisation with dynamic content, [fintechs are able to connect with users propelling them into a different league when it comes to customer engagement](https://www.financedigest.com/how-can-fintechs-better-engage-zillennials-with-their-financial-health-the-answer-lies-in-speaking-to-them-in-their-own-language.html "How can fintechs better engage Zillennials with their financial health? The answer lies in speaking to them in their own language").

**Looking Ahead**

The [fintech market has accelerated](https://www.financedigest.com/fintechs-should-accelerate-into-edge-computing-to-maintain-momentum.html "Fintechs should accelerate into edge computing to maintain momentum") from strength to strength over the past 18 months and, with investment into the market on an upward trajectory, this sector is only set to shatter more records.

Ultimately, traditional institutions cannot afford to ignore the new wave of [digital banking](https://www.financedigest.com/igtb-launch-digital-transaction-banking-available-as-saas.html "iGTB launch Digital Transaction Banking available as SaaS") that has rapidly gained market authority. Instead, they must embrace the value of investing in ASO and the key marketing strategies needed to build awareness, improve the customer experience and develop a competitive edge, if they are to compete with [leading fintechs’](https://www.financedigest.com/2022-the-year-that-facial-recognition-will-lead-the-fintech-industry.html "2022 – The year that facial recognition will lead the fintech industry") offerings.

_Mike Rhodes is the CEO and Founder of_ [_ConsultMyApp_](https://www.consultmyapp.com/?utm_source=financedigest&utm_medium=referral) _, one of the leading global app marketing companies. ConsultMyApp is currently driving the [digital evolution](https://www.financedigest.com/the-evolution-of-loyalty-and-its-place-in-the-digital-age.html "THE EVOLUTION OF LOYALTY AND ITS PLACE IN THE DIGITAL AGE") of some of the world’s top brands – including Tide, O2, Trainline and PureGym – through end-to-end app marketing._


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