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Abstract: The objective of this research paper is to determine whether storytelling can positively influence public acceptance of digital finance business models - fintechs - in Germany. We conducted seven structured interviews with experts from the finance and branding sectors and quantitative research on a sample of Germans. Our findings provide valuable insight into the status quo of digitalisation in the German finance sector and the importance of storytelling as a marketing tool. They highlight the strong potential of fintechs, showing that storytelling positively influences public acceptance of innovative financial service providers. Notably, however, personal contact with a traditional financial advisor is shown to still be highly important to the German respondents. This study offers valuable information for banks concerning their future positioning in the financial market as well as for fintech companies looking to enter the German financial market or increase their market share.
Keywords: Fintech; Storytelling; Unicorns; Digitalisation; Israel; German Finance Sector; Marketing Tool; Branding; Sunbit
1Problem
The COVID-19 pandemic had a meaningful impact on digitalisation, forcing banks to communicate with their customers via digital channels, including smartphone apps and online platforms. Therefore, innovative, flexible and customer-friendly digital applications - which can often be found at disruptive fintech firms - are needed (Europäische Zentral Bank, 2022). According to a study by FT Focus and Mambu, 58% of 500 surveyed leading bank managers around the world expect their company to disappear from the market within the next 5-10 years if their digital business approaches are not advanced (Financial Times Focus & Mambu, 2021). Digitalisation is a central prerequisite for long-term successful positioning in the financial system and the successful development of new financial solutions. However, 26% of respondents in a McKinsey study believe that the bank advisor remains an important factor when it comes to creating trust in new digital systems (McKinsey, 2022, p. 21). Therefore, financial market actors need to appeal to emotions to change consumers' attitudes towards new banking systems and create trust. Marketing communication in the form of storytelling uses the attributes of authenticity, honesty and credibility to convince consumers of products; therefore, it represents a promising marketing tool for selling digital solutions (Anastasya, Nurhalizah Binti, Gunawan, Leo & Tunjungsari, 2021, p. 2023).
2Current Understanding
Digitalisation in the German finance...