Financial technology, or “Fintech”, is a fast growing arena with new technologies, companies and innovations. The landscape is constantly evolving with entrepreneurs often lured by the vast sums of capital at play in financial markets.
Fintech was one of the most prolific sectors for venture capital before the current downturn came to pass. The Economist¹ highlighted last year how:
A nod to all the freebies, below cost services and offers consumers will receive from these new VC-backed entrants. In practice they are using their war chests to try and lure customers into their products and services for the promise of earning their customer lifetime value, or “CLTV” for short.
However, finance is an area with inherently high switching costs — Who on earth wants to regularly move their banking provider and transfer standing orders, direct debits and automated payments?
With the addition of, frankly, quite insane cost of customer acquisition (CAC) — for example, the cost per click (CPC) for the term “credit card” is floating around $10.87 according to Semrush², a search engine marketing platform — this is certainly no playground!