Leveraging FinTech partnerships to develop niche markets for growth

Abstract

Mobile apps and flashy websites are not enough for banks to retain relevance in an age of increasing personalisation of the digital customer experience. To build the innovations required for ongoing growth, banks should look beyond their local market to opportunities presented by a boundless digital age. In 2020, Iroquois Federal set out to grow its customer base and revenues by targeting a very specific audience — individuals who have recently married, will soon marry or who are in a committed relationship. Although the landscape is rife with digital tools for niche markets, Iroquois Federal identified a unique opportunity to tailor services and benefits to this underdeveloped audience segment. The largest group of consumers soon to wed are young, and many lack financial education. Studies show that 92 per cent of Millennials want to improve their money management skills and newly-weds whose financial literacy lags are at a vastly higher risk of divorce. To support and engage these customers while expanding its revenues, Iroquois Federal partnered with a FinTech service provider to launch Hitched, a financial planning app. With thousands of customers already signed up, Hitched is proving that niche digital markets can provide valuable outcomes for consumers and for banks willing to innovate in order to reach new heights.