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The power of niche in social media and online communities

Niche lenders also operate within a very specific field of alternative business lending, and that’s good news for the borrower.

Adriana Amato Jan 08, 2020

It's easy to forget that the internet as we know it is quite new (the actual internet, however, has been around since the Sixties). Many of us can still remember when it was called the world wide web and in its pre-social media infancy. Indeed, some of us can even recall a time before widespread internet access at all. 

Fast forward to 2020, and life without internet giants like Google, Instagram and Facebook seem unimaginable. In a short timeframe – Instagram has only been around since 2010! – these services have become cultural and even political powerhouses.

On the surface, their dominance seems insurmountable. But dig a little deeper, though, and you’ll discover an interesting shift taking place. 

Growth in the adoption of major social platforms has slowed down. In some countries, it's a story of outright decline. Facebook usage has plummeted by more than a third over the past 12 months in the UK. In the US, it's a similar story.

To be clear, these users haven't all logged-off and gone off the grid. They are still active online, but they’ve just gone elsewhere. There is more choice than ever.

In recent years, several other niche social media platforms have not only emerged but have significantly risen to popularity.

TikTok, for example, has captured the imagination of teens with its hyper-viral and weird user-generated videos. B2B companies have shifted their focus to LinkedIn. Houzz, a social website about home decorating ideas, has quickly become popular, while the gaming community has flocked to Twitch.

Our niche economy

 

What we’re seeing is a user migration towards specific online communities. With more choice, people can break off into platforms that suit their ideals and tastes rather than passively sifting through irrelevant content on a general feed.

In a certain sense, social media is becoming like print. Specialist publications are quite normal – but in social media, it’s quite a novel concept. It’s now easy for users to log into hyper-relevant communities and immediately immerse themselves in conversations and entertainment related to their specific interests.

In lending and finance, we've seen a similar shift from general to more niche services. Rather than banks trying to offer a myriad of different products to every possible sector, niche lenders specialise in a handful of products, carefully targeted at specific industries.

For businesses, this development is good news. The circumstances and financial profiles of even the smallest businesses are more complex than they’ve ever been. There is no one lender prepared to lend to every single borrower – and, actually, that’s okay.

There’s a better way: specialist lenders who can not only provide you with the product your business needs but have a proven track record supporting similar businesses within your specific sector.

 

No more Mr. niche guy

 

At a certain point, niche actually becomes a misnomer. The word carries a perception: as something small, or lacking general appeal. But like in social media, these niche lenders are emblematic of a broader, very powerful market transition.

Instead of being piecemeal, these lenders represent a fundamental shift in how businesses will access finance both now and in the future. What’s changed is the infrastructure supporting these ‘niche’ lenders.

It’s now easier than ever for interested businesses and hyper-relevant lenders to connect. There’s no need to scratch around in the weeds: A platform like Capitalise curates what’s on offer for each specific business.

Struggling to get a loan at bigger, more general lender? Don’t just stop looking, there’s a lender out there perfectly tailored to your needs. We’ll help you find them.

 

Book in a consulation to hear more about the options avaialble for your clinents. 

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