Investment in digital platforms boosting customer acquisition — Fintechs

Fintechs in Nigeria are investing more in digital payments infrastructure to boost customer acquisitions.

This is because businesses concentrate their resources on channels with the highest return on investment (ROI) for customer acquisition. This was disclosed in a report titled, ‘Nigeria Fintech Marketing Outlook 2024’ by Africa Fintech Summit.

The stakeholder group revealed that the surveyed fintech companies invested 70 percent of their marketing budget on digital platforms. They disclosed that a significant portion of the marketing budget (50 percent) is allocated to other channels across most verticals (business financial management, merchant payments and Point of Sales, savings and investment, and digital lending).

The report read in parts, “This could be due to the highly competitive nature of this vertical, where efficient customer acquisition is crucial for success.

“Moreso, educating potential customers about complex infrastructure solutions might necessitate in-depth content creation or targeted outreach, justifying a larger budget allocation.”

The report by Africa Fintech Summit also revealed that fintechs are now leveraging Generative Artificial Intelligence technology to produce various types of content, including text, imagery, audio, and synthetic data.

The stakeholder group also predicted that organic channels like social media and search engines will become increasingly important to fintech marketing in 2024 and the coming years.