In fintech, where innovation and disruption are the norm, maintaining a consistent and effective public relations strategy is crucial. However, fintechs often face a significant challenge when working with large PR firms.
At large firms, high employee turnover is common. In fact, it’s typically more than double the rate of other organizations. Fintechs are then forced to reset every time a new account representative is onboarded. This issue is particularly pronounced when new or junior associates are assigned to handle complex fintech accounts.
The Impact of Constant Change
High turnover at PR firms can have several negative consequences for fintechs:
- Loss of Institutional Knowledge: Each time an account representative leaves, valuable insights about the client’s business, industry and communication goals are lost. This forces the client to repeatedly educate new team members, consuming precious time, resources and money.
- Inconsistent Messaging: Frequent changes in personnel can lead to inconsistencies in messaging and strategy. This can dilute the fintech company’s brand voice and confuse their target audience, potentially damaging relationships with banks and other financial institutions.
- Reduced Quality of Output: Junior associates, while often enthusiastic, may lack the depth of experience needed to navigate the complexities of the fintech industry. This can result in less-than-stellar content, missed opportunities, and ineffective media relations.
- Strained Client-Agency Relationships: Constantly having to build rapport with new account representatives can be frustrating for fintechs. It may lead to a lack of trust and a feeling that the PR firm is not fully invested in their success.
The Fintech Factor: Why Industry Experience Matters
Fintech requires specialized knowledge and experience:
- Regulatory Landscape: Fintechs operate in a highly regulated environment. PR professionals need to understand the intricacies of financial regulations to effectively communicate without running afoul of compliance issues.
- Technical Complexity: Fintech solutions often involve sophisticated technologies like blockchain, AI, or advanced data analytics. PR teams must be able to translate these complex concepts into compelling narratives that resonate with both technical and non-technical audiences.
- Stakeholder Diversity: Fintech PR requires engaging with a diverse set of stakeholders, including banks, regulators, investors, and technology partners. Each group requires a tailored communication approach.
- Rapid Industry Evolution: The fintech landscape is constantly changing. Experienced PR professionals can help clients stay ahead of trends and position themselves as thought leaders in this space.
- Crisis Management: Given the sensitive nature of financial technology, fintech companies may face unique crisis scenarios. Seasoned PR teams with industry experience are better equipped to handle such situations effectively.
The Value of Stability and Expertise
For fintechs, working with a stable PR team that has deep industry experience offers several advantages:
- Strategic Insight: Experienced fintech PR professionals can provide valuable strategic insights, helping clients identify and capitalize on emerging trends and opportunities.
- Established Industry & Media Relationships: Seasoned PR teams often have strong relationships with key fintech and financial services journalists, increasing opportunities for high-quality media coverage. Not only do experienced PR professionals understand the media landscape, they also understand the broader fintech landscape, which means they can better identify potential partnership opportunities, such as with advocacy groups and relevant industry associations.
- Efficient Execution: With a solid understanding of the industry, experienced PR professionals can work more efficiently, requiring less hand-holding and delivering better results in less time.
- Credibility Enhancement: PR teams with a track record in fintech can lend additional credibility to their clients, especially when engaging with established financial institutions.
- Long-term Partnership: Stability in the PR team allows for the development of a true partnership, where the agency becomes an extension of the client’s team, deeply understanding their goals and challenges.
While high turnover at PR firms is a challenge across industries, it can be particularly detrimental for fintech companies. The complexities of fintech demand a level of expertise and continuity that is difficult to maintain with constantly changing staff.
To maximize the value of their PR investments, fintech companies should prioritize working with stable teams that have demonstrated experience in the industry. This approach not only ensures more effective communication strategies but also contributes to long-term success in a highly competitive and rapidly evolving market.