As consumer expectations continue to rise, fintech companies face increasing pressure to provide seamless and highly personalized experiences across all channels. Whether through email, push notifications, SMS, or in-app messaging, it’s crucial for fintechs to stay in touch with their customers wherever they are. So how can fintechs keep up? Especially when there are so many vendor choices:
Fintech companies operate under strict regulations, with varying legal frameworks across the globe. These regulations often dictate how customer data is handled, stored, and transmitted, making it more challenging for fintechs to use standard Software-as-a-Service (SaaS) marketing automation solutions. Many SaaS platforms cannot guarantee the level of data security and privacy required by regulatory bodies such as the General Data Protection Regulation (GDPR) in Europe or the Consumer Financial Protection Bureau (CFPB) in the United States.
To leverage the full potential of artificial intelligence (AI) in fintech marketing—whether to personalize messages or predict customer behavior—firms need to be able to share sensitive data internally without the risk of exposing it to external vendors. This is where traditional SaaS solutions can fall short, as they often require data to be sent outside of the fintech’s controlled environment. For businesses dealing with highly sensitive financial data, maintaining data sovereignty is crucial.
Due to the regulatory challenges and the need for data control, on-premise (on-prem) and bring-your-own-cloud (BYOC) options are rapidly gaining popularity in the fintech sector. These solutions allow businesses to host their marketing automation software within their own secure environments, either on their own servers or through private cloud infrastructure. This setup offers fintechs full control over their data and ensures they can meet stringent security and compliance requirements without sacrificing the benefits of automation.
There has also been a growing trend towards open-source marketing automation tools that offer flexibility and transparency like Laudspaker. Fintech companies are increasingly adopting these solutions because they provide more customization options and can be tailored to meet specific industry needs. Laudspeaker is currently in use by multiple fintechs in secure on prem environments as well as via BYOC deploys.
For fintechs, one of the critical features of any marketing automation platform is the ability to securely access and use sensitive data from other internal systems. Best-in-class marketing automation tools, like Laudspeaker, allow businesses to integrate their software with existing data sources via API calls, enabling personalized messaging based on real-time user behavior and financial data.
For example, a fintech might use its marketing automation platform to send personalized notifications to customers when they reach certain financial milestones or alert them to potential account issues. With API integrations, this data can be pulled directly from the company’s internal systems without exposing it to external servers, ensuring that privacy and security are maintained.
For fintech companies, the need to balance regulatory compliance with engaging and personalized customer experiences is more important than ever. Marketing automation can provide fintechs with the tools to reach their users across multiple channels, but only if the solution is flexible, secure, and scalable.
On-prem and bring-your-own-cloud options are increasingly becoming the preferred choice for fintechs, providing the necessary control over sensitive data while still enabling advanced marketing capabilities. Open-source solutions, such as Laudspeaker, offer fintechs the ability to customize their marketing stack while ensuring data sovereignty and compliance with industry regulations.
