Posted: 05 Sep 2022 Contributor: Ghia Marnewick
Banking Marketing Strategies: How to Boost The Revenue of Your Financial Services Brand
Due to the rapid growth of internet availability worldwide, the digital banking industry has seen significant growth in recent years. With an increased need for customer engagement, better profitability, and control, stronger demand for automation of traditional banking services is paving the way for real-time payments.
In fact, digital banking can be called a major technological change, as it allows users to generate automatic payments for common services, including electricity, telephone, gas, and credit. In addition to convenience, it makes banking easier by providing 24/7 access to banking features.
The growing risk of counterfeit money in fund transfers will also provide a favorable scenario for the development of the digital banking market. Recently, customers are moving to banks for digital features such as mobile payments, bills, and loan applications.
With affordable smartphones and easy internet access in remote areas, these services are increasingly sought after by the rural population. Due to these advantages, many participants operating in this business space are focusing on various marketing partnerships to drive growth, increase sales revenue and expand customer base. This is why planning a marketing budget in the banking sector is incredibly important.
Why the banking industry needs marketing
The financial industry covers many service sectors such as money lending, investments, insurance, credit leasing, installment sales, mortgages, and others, all of which contribute significantly to the global economy in finance.
In the past, companies in the financial sector often offered the same services to the same customers. However, digital disruption is completely changing the ways customers interact with new incumbents and creating new challenges for existing businesses to maintain and grow their customer relationships in the face of new threats.
Trust is an important aspect when it comes to the world of money and finances. Building trusting relationships with customers is not just about persuading them about the brand, but also about engaging them with the brand.
This is the key to placing more emphasis on customer retention and satisfaction rather than sales transactions. Adopting a mindset to create trusting relationships with customers achieves other marketing goals such as reducing consumers' perceived risk, building customer trust, promoting competence, signaling consumer commitment, improving shared communication, and conflict resolution.
In general, services offered in banking, investment, insurance, and other financial services can be difficult to understand, so this creates confidence in marketing professionals in the industry to convey such information in a way that is easy to understand.
By partnering with marketing professionals, financial services providers create a driving force that helps increase the level of trust between financial products and offerings and consumers. This in turn encourages consumers to participate in the use of these services and be more inclined to recommend them to others. New marketing methods are changing the way products and services are marketed to customers whose needs are constantly changing.
Customers are gradually being influenced and there is a growing appetite for a smoother path in financial services that directly reflects their needs. Despite many financial service providers having a strong market position with a large customer base, the pressure is gradually increasing with new entrants with completely new approaches reshaping the markets. To this extent, it is important that the marketing strategy is strong and remains relevant to the latest and trending changes in the financial market through collaboration with marketing professionals.
The 2020 pandemic is still affecting how many companies operate today and is pushing marketing forward and advancing its strategic value for any organization. Therefore, it is very important for strong marketing strategies in banking sector.
Trends in the banking industry
With the banking industry constantly evolving and changing, knowing which trends to look out for can make the world of difference. Here are a few to help you get started and help answer the question “How can banks increase revenue?”.
1. Everyone is looking to create a super app
Super apps dominate many aspects of the digital world and human interaction. Banks need to decide whether they want to compete or simply cooperate.
2. Go green
As ESG concerns grow, banks are being called upon to become guardians of our planet. There are costs – but the returns are worth it.
3. Innovation is coming back
To keep up with fintech and other competitors, banks are discovering their creative mojo and asking themselves a simple, powerful question: "Why not?"
4. A digital brain gets a caring heart
Banks are looking for innovative ways to have conversations with customers within their digital spaces. Technology like AI helps generate customer engagement which in turn creates human connections.
5. Digital currencies lead the way
Since cryptocurrencies are here to stay, experiments like CBDC are gaining momentum.
6. Smart operations for zero waste
Artificial intelligence and machine learning in banking today outperform humans in some tasks. Using this technology will bring a zero-waste operation within reach.
7. Pay: anywhere, anytime... and now in any way
The next payment revolution will come from open networks, which will force banks to rethink their payment offering for new discerning customers.
8. Banks are back on the road
The hunt for growth will include international markets. Expect cross-border players to look for digital banks to attack.
9. The war for talent is intensifying
The pandemic has disrupted the supply chain for banks' most important asset: talent. Competition is increasing. Winners will change as employers.
What are the marketing strategies for bank marketing?
So, how do you promote financial services?
When it comes to financial services, it's important to put together a marketing plan that will make your business stand out. Bank marketing strategies allow you to effectively promote your services to potential customers, hopefully turning them into loyal clients.
Marketing strategies for banks and financial institutions can turn potential leads into long-term clients who are best able to recommend your products and services to others. Here are some marketing strategies for financial services ideas to help you grow your business.
Avoid general messages
One of the first rules to remember as a financial advisor is that your marketing should be targeted to a specific audience. The role of marketing in financial services is important because you are trying to reach a specific customer, so all your promotional efforts should reflect this. Prospective customers will be looking for financial experts to help them with specific problems, so it's up to you to create a business image that gives them the impression that you're qualified and able to provide the financial tools and services they need.
Optimize your website
In addition to promoting your business on social media, you should use your website to attract your target customers. If your financial services website is too general, it may mean that you don't have a specific demographic, which can lead to less traffic to your website. Don't forget to customize your services page to connect with customers, educate them, and increase their interest in your services. Make sure your website offers clear ways for clients to contact you, such as a contact information form, to make sure you're easily reachable.
Personalize your digital presence
Just like your website, your online presence should be tailored to your demographic. Clients and prospects tend to spend more time on websites when they are customized.
Try to be a matchmaker
It is important to remember that you cannot be an expert in all aspects of financial planning. Financial advice is rapidly moving towards longevity planning, as opposed to general wealth management. When appropriate, be sure to connect your customers with resources for transportation, financial management for retirement, health care, and nursing. You can even contact some financial longevity experts and ask them for a roundtable discussion that you can turn into a virtual conference.
Understand your customers
Once you're clear on what your demographic wants, you can streamline your marketing message to meet their specific needs. If you're not sure about your target audience's motives, don't be afraid to ask. You can reach out to potential customers on social media or ask your customer base what they want to see from you.
After incorporating these marketing tips into your promotional plan, thank your clients for helping your business grow. Show your gratitude by sending thank you cards after a customer makes a purchase or by sending a handwritten note to show how much you appreciate their business.
Ready to boost the revenue of your financial services brand?
By following this simply guide, you can easily boost the revenue of your financial services brand in the digital age. All you need to do is invest the time and effort into doing so, and the rewards will speak for themselves.