The Importance of Strategic PR in Fintech: Lessons from Cushion’s Shutdown

In the fast-paced world of fintech, having a groundbreaking product is often seen as the golden ticket to success. However, the story of Cushion, an AI-powered fintech startup that specialized in negotiating bank fees for consumers, serves as a stark reminder that innovation alone is not enough. Despite raising $21.6 million and achieving an impressive valuation of $82.4 million, Cushion announced its shutdown in January 2025. This high-profile closure underscores the critical, yet frequently overlooked, role of strategic public relations (PR) in navigating the complexities of the fintech landscape.

PR Strategies for Business Model Transitions

Cushion’s journey took a pivotal turn in 2022 when it shifted its focus from fee negotiation to bill payments. This transition was marked by a significant $12 million Series A funding round. However, the company struggled to effectively communicate this new direction to its stakeholders. Instead of framing the pivot as a natural evolution of its mission to advocate for consumers, the shift led to confusion among existing customers and potential investors.

Effective PR during such transitions requires more than just a press release; it demands a cohesive narrative that resonates across various media channels. A well-executed PR strategy could have positioned Cushion’s pivot as a strategic expansion rather than a desperate move. For instance, securing an exclusive feature in Business Insider could have provided a platform for the founders to articulate their vision and rationale behind the shift. Additionally, a series of interviews on finance-focused podcasts could have helped clarify the company’s new direction, thereby preserving market confidence and reinforcing its value proposition.

Matteo Ferretti, CEO of Spynn, emphasizes the importance of transparent communication: “The most successful fintech companies build transparent communication channels with stakeholders well before they face scaling challenges. Strategic media placement is about positive coverage and maintaining a consistent narrative that withstands business volatility.”

Strengthening Investor Confidence Through PR

Despite achieving $3 million in annual recurring revenue within just ten months, Cushion faced challenges in scaling its operations. This disconnect between early success and long-term growth highlights the crucial role of investor relations, where strategic PR can make a significant difference. Maintaining investor confidence requires open and honest communication—acknowledging challenges while presenting a clear roadmap for the future.

Spynn suggests that fintech startups experiencing scaling issues should engage stakeholders regularly through case studies, success stories, and data-driven insights. A proactive approach could have included quarterly investor updates that showcased real-world customer impacts and progress milestones. “When startups pivot their core offerings, as Cushion did with bill payments, cohesive storytelling across media channels is essential,” notes Ferretti. “Maintaining continuous top-tier media presence acts as a reputational buffer during business model transitions.”

Managing the Shutdown Narrative Using Crisis Communication

Cushion’s closure presented a final opportunity for strategic PR. While founder Paul Kesserwani acknowledged the company’s struggles on LinkedIn, a more structured communication strategy could have preserved long-term credibility. Even in the face of shutdown, a well-managed narrative can transform failure into a learning opportunity, safeguarding the founder’s reputation and maintaining investor goodwill.

An effective shutdown strategy might have included an exclusive interview with TechCrunch to discuss key takeaways from the journey, followed by a customer appreciation campaign that highlighted the $15 million successfully refunded to users. Additionally, a founder-authored piece reflecting on the challenges faced in the fintech space could have positioned Kesserwani as a thought leader rather than a failed entrepreneur.

Strategic shutdown communication involves three key phases: acknowledging setbacks, celebrating achievements, and sharing insights that benefit the fintech community. By securing well-placed media features and engaging in industry discussions, founders can maintain valuable relationships with investors, customers, and potential future partners.

Resilient Brand Equity Through Consistent Media Presence

Cushion’s innovative AI-driven fee negotiation technology represented a significant advancement in consumer finance. However, the company missed opportunities to solidify its leadership in financial advocacy due to inconsistent media engagement. Research from Spynn indicates that fintech companies maintaining at least quarterly features in top-tier publications demonstrate 40% greater resilience during funding rounds compared to those with sporadic media presence.

Strategic PR is about proactively building brand equity. For Cushion, this could have involved regularly publishing consumer banking insights, positioning its founder as an industry authority, and highlighting user success stories. A steady media presence could have strengthened customer trust and attracted potential partnerships that are invaluable for scaling.

Lessons from Cushion’s Shutdown

Cushion’s shutdown serves as a poignant reminder of the integral role that public relations plays in the success of fintech startups. As the fintech landscape evolves, it is crucial for emerging companies to recognize that a strong PR team is essential for growth. The experiences of Cushion highlight the need for communication strategies that blend traditional media relations with data-driven storytelling, community engagement, and strategic positioning—all guided by effective PR to ensure credibility and consistency.

Startups must understand that technological innovation alone is insufficient for success. Market perception, investor confidence, and customer engagement are equally vital components of a thriving business. As Matteo Ferretti aptly concludes, “The fintech companies thriving in today’s environment understand that reputation equity is as valuable as technological progress.” Cushion’s story serves as a critical lesson that even the most promising technology requires strategic communication to reach its full potential. At Spynn, the focus is on helping fintech innovators build PR infrastructures that support sustainable growth at every stage.