Fintech in Focus is part of The MHP Financial Services Pulse. 

Today marks a shift in the payments world as the mandatory reimbursement scheme comes into force. A first of its kind, payments companies, fintechs and banks within scope will now have to do more to prevent and protect consumers from authorised push payment (APP) fraud, as they become mandated to reimburse customers who have been tricked into sending money to scammers within five days, up to the value of £85,000. With personal and business losses to APP fraud amounting to £459.7 million in 2023, it’s no surprise that the Payment Systems Regulator (PSR) has taken a laser focus on this area.

While customer protection is paramount, the impact of the new rules on firms should not be underestimated. Where banks and more established financial organisations may likely have already been reimbursing to this level, there are valid industry concerns that the scheme could hinder innovation and competitiveness in the UK fintech market, with mid to smaller-sized firms struggling with the new compliance and reimbursement costs.

What’s clear, is that for those continuing to operate here, they are now doing so in a vastly different fraud and regulatory landscape. So, what role can communications play in helping them to navigate this new environment and support continued growth?

Communicating with new stakeholders

We know from our recent research, Reputation and the future of European fintech, that 60% of fintech leaders believe that regulation generally has a larger impact now than when their business was founded. So much so, that a third say maintaining regulatory compliance will be one of the most challenging goals to achieve this year. However, the benefits of doing so far outweigh the potential struggles, with over half (53%) saying that regulators will be the most important audience in achieving their growth ambitions. Today’s introduction of the reimbursement scheme therefore serves as another reminder that communications strategies must speak directly to regulatory stakeholders.

Instilling trust through communications

Firms have focused on getting practical measures in place to prevent and detect fraud – whether that’s improving customer verification or transaction monitoring processes. With the groundwork set up for compliance, a priority for fintechs should now be communicating their commitment to doing so directly with customers too. In a world where customer protection is front and centre, they need to feel reassured that any organisation they use as part of their daily financial lives is taking this seriously. But this is not lost on UK fintech leaders, noting that having a strong public reputation – which now inevitably must focus on customer protection more so than ever – is the most important aspect for retaining customers (31%) and acquiring new ones (28%).

Reshaping strategies 

Fintech communications teams now need to be building strategies that highlight their trustworthiness and commitment to customer protection with a growing set of stakeholders. Hearing from fintech leaders themselves, we know that doing so will have a direct impact on their growth.

Key to this is centring communications around a clear brand narrative that has this element at its very core. It must tell a simple, bold and relevant story around the businesses mission and purpose, whilst being able to be tailored to resonate with a varied and growing set of stakeholders. We know many fintech leaders (85%) think it becomes harder to tell a single story as they scale, but the reality is, too many ‘narratives’ spoil the broth. Pick one and craft it well.

Articulating this narrative through the media and owned channels then allows organisations to more effectively drive differentiation, showcase their purpose, and in today’s heightened regulatory landscape, navigate ever more so sceptical, yet engaged, customers and regulatory bodies.

This kind of dynamic communications strategy sets mandated fintechs up to communicate clearly and consistently in a post-APP fraud reimbursement world, while also ensuring that their communications are aligned with commercial and growth objectives.

For more information on the fintech landscape read our report Reputation and the future of European fintech