In the crowded world of fintech and lending, new players often struggle to stand out. Many borrowers are smothered with identical offerings, ads, and assurances. However, some new enterprises are trying a different strategy: using blockchain products and crypto-style incentives along with traditional financial products.

The results are often surprising, garnering greater interaction, buzz, and traction than expected. In this article, we explore how some rising fintechs (especially in credit and lending) use crypto marketing tactics, from token airdrops to NFT benefits, and how credit institutions or credit repair brands might use these tactics.

Why Crypto Marketing Looks Great to Fintechs

Before we dive into the nitty-gritty of the tactics involved, let’s take a minute to understand why these fintechs turn to crypto-style marketing in the first place.

The appeal of crypto marketing strategy to fintechs stems from a variety of factors. It can generate a low-cost engagement and viral reach. The use of token drops, NFTs, or token rewards can create excitement and traction through word of mouth, a strategy that is often more challenging to achieve through traditional advertising. These types of marketing also help build engagement loops, giving users a reason to return, use more of the service, and stick around.

The notion of community and loyalty is crucial in crypto marketing, as it aims to create a sense of community, one that owns the token, feels a sense of ownership, and actively discusses the product. Fintechs are aligning with a brave new world of web3 and blockchain, embracing innovation and a forward-looking approach (though this can come with tradeoffs).

These advantages are sufficient for many new fintechs to use these tools in building their business, despite challenges such as the risk of regulatory violations and issues with user trust.

Token Airdrops and Referral Rewards for Lending Apps

Airdrops, the free token distribution to select users, is a classic tactic in the crypto world, and fintechs engaged in lending are employing these tactics to obtain early use and generate loyalty. Airdrops are typically used before a customer makes a purchase, during the so-called funnel stage.

Usually, fintechs identify individuals who either sign up for their app, complete a Know Your Customer (KYC) process, or provide basic financial data. These individuals are then automatically credited with a small amount of tokens, which may represent discounts, governance rights, or the ability to access premium features in the future.

Making something apparent to the user encourages sharing with friends, posting on social media, and exploring the benefits associated with the token. Ultimately, this creates viral marketing techniques similar to those used for crypto projects, utilizing token distribution methods.

Referral rewards, received as crypto tokens, might often outperform cash rewards. Instead of offering $10 per referral, a fintech may provide 50 token units. Suppose the tokens appreciate or offer opportunities to perks in the future. In that case, the referrer believes it is giving something of long-term value, not just a one-time perception of a gift.

To prevent abuse, these token rewards often come with vesting schedules or usage thresholds. This means that users must keep using the product, such as taking out a loan or making timely payments, before the tokens are fully unlocked. This ensures that token rewards are tied to genuine user engagement.

Credit repair services or credit coaching companies could also use these examples above. These companies could give clients a “credit health token” for achieving milestones, such as the payment of a delinquent account or the ordering of a credit report. These tokens could then lead to discounts for future usage of the services or premium educational material. This approach enables credit care services to adopt crypto marketing, reaching clients more thoroughly and encouraging continued benefits from the relationship.

Content and Social Mechanics with Token Rewards

Fintech firms are expanding their use of token rewards to incentivize consumer interactions with educational content. Youthful technology companies reward token-giving readers for merely reading content or completing homework (quizzes, for example).

Here, readers are converted from a passive state to an active one. These tokens can be used with other products purchased and/or used for services, such as premium products or special loan categories, which also serve intellectually to round out a prospect or customer relationship. This may be a new route to a more serious thought direction for consumers, moving beyond standard content usage, as it offers a path to interaction with the consumer/reader.

Real-World Fintechs Are Using This

Fully crypto or nearly-so credit lending platforms are increasingly developing; several fintechs are introducing elements of the blockchain into their product offerings. For example, Figure brings forward the Provenance blockchain for tokenized lending products, allowing quicker and cleaner transactions. The models of decentralized finance (DeFi) are now utilizing many of the token incentives offered for borrowing and lending pools, serving as general guidelines that credit fintechs can use to explore other pathways for future implementation.

Many traditional fintech companies are adopting loyalty or point programs that resemble crypto incentives, even though they do not involve crypto or blockchain. Several digital banking products, of varying types, utilize token-type rewards to increase customer engagement. The credit repair concern has not yet made significant inroads into the usage of these features. Still, there is considerable room for future growth in these areas, as outlined in the described strategies.

Conclusion

Emerging fintechs in credit and lending are increasingly experimenting with crypto marketing tactics to break through the noise, reward early users, and build a loyal community. By leveraging airdrops, token rewards, NFTs, and social engagement strategies, these firms are developing innovative ways to engage potential customers.

Credit repair and credit service companies can learn from these approaches and incorporate them into their own marketing strategies to drive loyalty and customer acquisition. However, success depends on thoughtful design, legal compliance, and clear user incentives. When done correctly, a hybrid approach combining traditional finance with crypto marketing can become a powerful tool for growth.