Can LinkedIn Solve Regulatory Issues Facing FinTech?

Digital technology is transforming the way we conduct business. With great change comes great responsibility, and the financial industry is no stranger to the churn of innovation. Fintech giants like Monzo and Revolut are leading the way when it comes to revolutionising how people bank online; but with every solution they’re able to solve, another is created in the process.

For the purposes of this article, we’re going to focus on how to solve the main challenges facing the Fintech industry using LinkedIn.

The problem: Regulatory Issues

The Solution: Strategic Partnerships

The ever-changing environment of the financial industry makes keeping up with the latest governance and compliance obligations hard to navigate. Revolut recently came under fire for regulatory concerns after a whistleblower reported their issues with the CEO’s conduct and compliance obligations, especially in regard to the company’s anti-money laundering processes. Although Revolut categorically denied the accusations, their reputation was tainted and they suffered a severe media backlash as a result.

What we can learn from Revolut is that having a robust and well-informed compliance strategy from the get-go is imperative, whether it’s through outsourcing talent or using start-ups like RegTech who’s entire purpose is to ensure your company meets all regulatory requirements as they’re updated, avoiding any potential lapses or gaps. LinkedIn is a useful tool for connecting with these types of companies. By building a rapport with potential strategic partners and staying updated on the latest news and issues around regulatory standards, remaining compliant can become simplified and stress-free.

The problem: Industry Expertise

The Solution: Talent Recruitment

Policies and procedures are there for a reason. Their entire purpose is to keep a company – regardless of its size or purpose – compliant. Industry expertise, especially for financial and legal firms, can be hard to come by; but finding the right people for the job from the very beginning will save potential headaches further down the line and keep everyone on the same page.

Attracting the right talent can seem like a daunting task. That’s why utilising an invaluable tool like LinkedIn can be a game changer. Whether you use a strategic partner and outsource your recruitment, or keep it in-house and create a job description and employment strategy yourself, the world’s digital talent is at your fingertips. Whatever you choose, in order to attract the right talent, you need to position yourself correctly. Networking events (both offline and online), sharing information (added value) and becoming a thought leader in your industry are just some ways to showcase your appeal. The right employment opportunities, career progression and cause (story) will also help you attract and retain the experts you need. Focus on your USP and hone your strategy so it reaches the right target audience – in this case experts – so you can spend less time worrying and more time strengthening your industry knowledge.

The problem: Brand Awareness

The Solution: A Robust Marketing Strategy

One of the main issues finance companies face is their anonymity. Brand awareness is particularly important for Fintech companies looking to expand their market in the digital space, because as more and more young people champion the need for digital banking services, knowing what companies offer solutions is crucial!

In that regard, a robust marketing strategy is imperative. Although most marketing strategies focus on several key elements to increase their online presence, evidence suggests that creating one targeted social media strategy yields greater results than multiple across several platforms.

LinkedIn offers various solutions to help companies increase their brand awareness. By utilising company profiles to network, share content and add their voice to the industry-wide conversations, they can become a thought leader in their space, increasing their brand authority. Just remember to stay socially conscious. Using Revolut as another example of what not to do, their recent marketing faux pas – the infamous 2018 Valentine’s Day advert that highlighted the number of people who ordered a takeaway for one with the slogan ‘You ok, hun? – generated an online backlash. This was further compounded when the figures they used were revealed to be fictitious. Although it certainly got people’s attention, it wasn’t the kind of marketing exposure Revolut wanted!

If they’d only managed to research their target audience, engage with others in the same space, and employ professionals who would have enough industry expertise to know that single-shaming is not a good way to promote your brand, then perhaps their reputation might have been salvaged. (Although, despite the faux pas, according to Glassdoor, Revolut remains the second best Fintech company to work for!)

Conclusion

Whatever the challenge, LinkedIn continues to offer solutions to almost any issue. Any problem can be solved when you know the right person, but finding them and engaging with them is the key to continued success.