The main challenges involved in marketing financial services remain unique to that particular industry. Some of the main challenges of financial institutions marketing include evolving technology, a generational shift, and a lack of consumer trust. These are just a few of the challenges that are prevalent throughout the financial services landscape. While these challenges might slow down some financial institutions, there are others who see an opportunity to turn them into financial marketing solutions that are also a competitive advantage. By overcoming these challenges, they jump ahead of the competition and reshape the competitive landscape of the financial services industry and secure their position in a highly disruptive future. New Financial Technology Helps Business’s Save on Costs
The main answer that is shared when asked about the largest challenge of marketing financial products and services is keeping up with new technology in the industry. Technological advances and disruptions over the last few decades have changed the ways in which we communicate, make purchases, and do business on a daily basis. Emerging financial services technologies have disrupted how consumers interact with their money, the services they expect from financial institutions, and how those organizations perform their business. Financial institutions can benefit from technologies like chatbots and automation that reduce manpower hours, improve customer relationships, and increase profitability. The impact of new technology in financial services differs based on their function but there are benefits that can be gained from adapting to new technology. Financial Institutions Adapt to the Generational Shift
The generational shift means millennial and Gen Z banks need to decide how they can appeal to existing and future clients (generations). The financial sector relies heavily on relationships which means building trust is a major factor. Without educational content and transparent fees to build trust, it becomes difficult for financial institutions to retain clients and build customer loyalty. Consumers will be loyal to a particular band if they find it easy to engage online or via mobile methods. However, they still want to be able to talk to a person when needed. Gen Z is more likely to have started saving for retirement at a younger age. In addition, this year will see almost 90% of Gen Zers use online banking and about 80% use mobile banking as this generation shows a higher adoption rate of fintech tools and apps than older customers. New generations prefer digital and mobile financial tools. They also seek out investments that reflect their personal goals and values. Your financial institution needs to cater to younger generations by implementing financial technology and growing customer relationships that benefit the consumer and the financial institution. Commoditization Should Be the Focus of Financial Institution Marketing
As the financial services industry grows in the digital age, so does competition that offers many of the same services. Commoditization means the products and services offered by one company are much the same as the products and services offered by the competition. Consumers have less brand loyalty if they can move on to someone else for the same services. Your marketing strategy needs to focus on what makes you different and the unique ways you provide value to customers. Data mining can personalize messages to existing and potential clients through print and digital ad copy that addresses their needs and generational identity. Consumers trust direct mail more than digital so increase your print marketing to more easily connect with your audience. Need help navigating the challenges of marketing financial services? Call NextPage today. Contact Us Now for More Information
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