Navigating compliance in fintech marketing: What every B2B fintech should know

When you’re in the fintech space, marketing isn’t just about shouting your message from the rooftops – it’s about communicating it clearly within strict regulatory boundaries. The financial services industry is one of the most heavily regulated sectors in the UK, and when it comes to marketing, fintechs face a unique set of challenges.

Whether you’re a payments provider or a lending platform, understanding and navigating compliance in fintech marketing is crucial to avoid hefty fines, reputational damage, and even legal action.

So, how do you market your cutting-edge solutions while keeping your compliance team happy? Here’s what B2B fintechs need to know to stay on the right side of the law.

Understand the regulatory landscape

Firstly, fintechs must be aware of who is keeping an eye on them. In the UK, fintech marketing is primarily regulated by the Financial Conduct Authority (FCA). They are responsible for ensuring financial promotions are fair, clear, and not misleading. This means that any claims you make about your services – whether it’s in a blog, email campaign, or social media post – must be accurate and substantiated.

The FCA takes marketing compliance seriously, and breaches can lead to enforcement action, including fines (the largest of which was £248 million). For instance, if you’re offering a new loan product with specific interest rates but fail to disclose conditions that make these rates hard to obtain, you could be in hot water.

To minimise any breaches of regulations, ensure a compliance officer or legal expert reviews your marketing materials, especially when you’re launching new products or services.

Be transparent

In fintech marketing, transparency is not just a nice to have – it’s a legal requirement. You need to be upfront about costs, risks, and product features, so your audience knows exactly what it’s getting into. Avoid using vague language or making overly optimistic claims. If there’s a risk to your product, such as fluctuating rates on a financial service, it must be disclosed clearly and concisely. Likewise, adding sources to your statements and claims protects you from potential backlash. For instance, if your product says it will reduce transaction costs by 20%, prove it with tangible figures.

Transparency builds trust, and in a sector like fintech where trust is paramount, being clear about what you offer can be a competitive advantage.

Stay up to date with regulation changes

The fintech landscape is constantly evolving, and so are the rules. Keeping up with regulatory changes can be daunting, but it’s essential to ensure you remain compliant. The FCA regularly updates its guidelines to address new challenges and developments, such as AI and cryptocurrency.

For example, the rise of crypto has led to stricter rules on how these products can be marketed to ensure consumers understand the risks involved. If your business is in this space, you’ll need to stay on top of these changes to ensure your marketing strategy is always aligned with the latest guidelines.

It can be a good idea to work with a compliance consultancy or set up regular training sessions for your marketing team to keep them updated on the latest regulatory developments.

Be aware of financial promotions rules

Financial promotions are a key focus for the FCA, and the rules around them are strict. Any communication that invites someone to engage in financial activity (such as investing, lending, or transferring money) is considered a financial promotion. And these promotions must meet the FCA’s requirements, or you could be in breach of the law.

This doesn’t just apply to big-budget ad campaigns; a simple LinkedIn post about your new product can be classified as a financial promotion if it encourages potential customers to engage with your services. As such, it’s vital to ensure that all promotional content is approved by someone fully trained before it goes live.

It is also a good idea to keep a clear process in place for financial promotions approvals, making sure everything passes through relevant teams, including legal and compliance.

Be cautious about social media

Social media is a powerful tool for fintechs to engage with other businesses and potential customers. But it’s also a minefield for compliance. The fast-paced, informal nature of platforms like TikTok and LinkedIn can make it easy to slip up and post something that doesn’t comply with regulations. A single ill-thought-out video or post could land you in trouble if it’s seen as misleading or non-compliant.

One way to mitigate this is by creating a clear social media policy that outlines how your brand will engage online. Make sure all posts are reviewed by a compliance officer, particularly if they involve financial promotions. And don’t forget that retweets or shares of third-party content could also reflect on your brand, so be mindful of what you amplify.

One way to minimise risk is to use a social media management tool that allows for content approval workflows. This will minimise the risk of breaches and ensure that every post is compliant before it goes live.

Don’t forget about data privacy

Beyond the FCA, you also need to be mindful of data privacy laws, particularly the General Data Protection Regulation (GDPR). Fintechs often deal with highly sensitive financial information, and any breach of data privacy regulations can have severe consequences. When you’re collecting customer data for marketing purposes, such as for email campaigns or lead generation, it’s critical that you have their explicit consent.

Ensure your privacy policies are up to date and that your data collection practices are transparent. If you’re using automated marketing systems or AI-driven tools to analyse customer data, make sure you’re following best practices for data security and privacy. If you don’t already, be sure to provide clear opt-in forms and ensure your email marketing is fully GDPR compliant.

For more information about how we can help your fintech business build trust in the search engines and amongst consumers through digital PR, get in touch with us.