r/fintech – Do new neobanks have to have a narrow target audience?

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Targeting a vertical audience that self-identifies as such whether Hispanic Americans or barbers is necessary to reach potential customers through the usual acquisition channels, like u/Google and u/Facebook.

Hispanic Americans might be acquired through a channel like Telemundo 52, for instance, while barbers might best be reached through professional channels on Facebook.

Yes, when it comes to targeting narrowing down your audience is good because you will know where to go to find them, their habits and how to acquire them.

However, while a neobank for photographers may have a marketing advantage over a more generalized neobank, the advantage is unlikely to be durable.

To succeed, the neobank must have some purpose-built product that its horizontal competitors are unlikely to match.

In the case of photographers, that might mean offering specialized invoicing and billing that bundles the cost of storing digital photos, for instance, or providing one-click access to general liability and property insurance for events.

Vertically-focused financial services platforms are good, however, a unique product and a targeted marketing strategy are both essential to build a large and sustaining business in this space.

Originally posted on LinkedIn

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