FinTech Ad Spending Has Increased 45% in the Past 3 Years

FinTechs is reported to increase marketing in larger cities to attract a wider customer base.

Over the past three years, ad spending by these companies has increased by more than 45% on average, Bloomberg News reported Sunday (Jan. 5).

The 45% figure, the report says, comes from Outfront Mediaan advertising company whose clients include many high-profile FinTechs, including CashApp, Klarna, PayPal and its peer-to-peer arm Venmo.

This increase in spending, says Bloomberg, comes as FinTechs grow in popularity among users, with these companies setting the stage for potential acquisitions or initial public offerings (IPOs).

“Forever, FinTech companies are very compatible with digital-native businesses,” said Jeff Tittertonchief marketing officer of Stripeswho dared to advertise the brand for the first time in 2024.

“But what we’re seeing now is that they’re taking a broader aim. Their addressable market continues to grow, so you’re seeing us showing up in areas that we didn’t before.

Another FinTech — corporate cards/cost management FIRM Brex – is also spending more on advertising, the report added, shifting its focus to messaging aimed at businesses of all types and sizes, not just startups.

“Before I joined Brex, we really didn’t target the business audience particularly in our out-of-home efforts,” said Scott Holdenwho became the company’s chief marketing officer in 2023. “We Granted focused on using that medium to sell our corporate card to startups. Then when I joined, we launched our out-of-home messaging about Brex which is a unified spend platform.

The report states that FinTechs Faced more regulatory scrutiny, especially around their partnership with banks and issues like hidden fees. Last year saw the high-profile collapse of Synapse Financial Technologies, which brought a wave of problems for its clients. There are also hopes, says Bloomberg, that this regulatory pressure may ease under the new Trump administration.

In other FinTech news, PYMNTS wrote last week about how financial technology companies and credit unions (CU) are moving from competitors of partners. With consumers increasingly demanding seamless banking, these companies are working together to improve efficiency and member experiences.

and in spite of challenges such as slow decision-making and inconsistent systems, report PYMNTS Intelligence and Velera “Dream Team: Credit Unions and FinTechs Partner to Deliver Financial Innovation” shows that these partnerships are mutually beneficial.

“Many FinTech companies now view credit unions as partners rather than competitors,” PYMNTS wrote. “According to the report, 66% of FinTechs see CUs as clients and 90% see them as collaborators. In addition, 43% of FinTechs now offer products to CUs, including solutions of self-service and member experience enhancements, consistent with increasing demand for digital-first services and providing CUs competition with larger banks.”