Unprecedented levels of uncertainty from 2020 onward proved financial services providers' remarkable resilience and agility.
But, for industries like real estate, accounting, and investment management, there are still more
roadblocks ahead. Big growth means big expectations, and economic and geo-political challenges - inflation, supply chain disruptions, and the possibility of recession - still loom. As 2023 enters the homestretch, the financial sector's "new normal" is in full view.
How can financial services marketers address challenges, unearth opportunities, and forge a future? It's simple: to navigate marketing challenges and champion their audiences, transparency and technology must merge.
Data Dive: The Challenges of Marketing Financial Services
Just 43% of people believe that banks care about their clients' long-term financial success.
MarTech solutions are thriving, but in-house teams do not have the competency to maximize ROI on marketing investment.
FinTech is growing, and millennials trust technology more than "brick-and-mortar" experiences.
It's challenging to offer personalized financial services, but 75% of consumers prefer to work with brands that personalize the experience.
Financial services remains one of the least trusted industries by consumers.
4 Marketing Challenges-and How You Can Mitigate Them
These obstacles can slow down some professionals, but smart marketers see them as an opportunity. Those who alchemize marketing challenges into a competitive advantage will win esteem, reshape the sector, and secure a place in a financial future that will only become more disruptive.
Let's take an in-depth look:
The Digital Transformation of Financial Services
Mobile money, peer-to-peer (P2P)/marketplace lending, crypto-assets, insurance tech, and more are driving greater consumer access to financial services. However, the rise of Fintech poses challenges for traditional financial services. Monopolistic behavior by big technology platforms is already being scrutinized. As financial services grapple to keep up and launch similar technology-driven configurations, regulators are struggling to navigate a landscape that is increasingly characterized by new tech and new players. Questions of financial stability, financial integrity, fair competition, and data privacy loom large. Maintaining or regaining consumer trust is paramount, and financial services marketers must recenter messaging above all else.
New Marketing Techniques
PPC, SEO, OTT-Every week, new acronyms, tactics, and techniques emerge as best practices for old ones change. Successfully marketing financial services and products means successfully anticipating and adapting to rapid changes in trends. As the marketing media mix continues to evolve, financial services marketers can no longer rely on tossing 5-10 blog posts up a year and hoping for the best. More marketers must see new techniques as an opportunity rather than a roadblock. Audio ads, OTT ads, and more mean financial service providers can hyper-target their audiences at the right moment and with the right message.
More competition means more commoditization. As commoditization increases, some financial institutions are struggling to differentiate their financial services at a product level (innovation) and a messaging level (marketing). Inflation is motivating consumers to reprioritize low price points, placing financial service providers in the flux of a race-to-the-bottom scenario. It's time for established institutions to put the 'service' back in financial services to offer more value and retain clients amid the deluge of more affordable fintech companies. To achieve this, brand positioning means everything. Financial marketers need to think about telling a new story about their service or product-one that infuses humanity and reinforces consumer trust.
Inconsistent Brand Messaging
The lingo of financial services can feel stuffy and difficult to parse. But finances and financial services are also deeply personal. The stakes are high for consumers-and FSPs must promote themselves with messaging that explains the financial benefits of their services but also captures the upsides that are much harder to quantify (ongoing family support even after death, security, ability to breathe, less stress and more time to focus on what matters). Beyond the basics of brand messaging, FSPs shouldn't overlook the ROI of consistent brand representation. Consistent brand presentation across all platforms not only increases revenue but also augments employee morale.
How to Navigate
Today's consumers are savvy, competition is ruthless, and rapid digitization can leave some FSPs feeling unmoored. These strategies are financial service marketers' secret weapons:
Double down on SEO and messaging
Align with your sales team
Be strategic about platforms
Focus on employment branding and educational content
Host courses, webinars, and online presentations
Leverage video content that can sit on your web pages and social media
Utilize an agency like CMG
Financial Marketing in Turbulent Times: Transparency and Technology Above All Else
As the financial services industry weathers disruption and digital transformation, financial marketers must do the same. To survive in a post-digital world, FMs should view and integrate digital as vital to business-no longer as a fringe tool for FinTech.
By leveraging tech, not only in marketing but across all departments, FSPs stand a better chance of creating federated frameworks that win digital-first consumers, fend off competitors, and allow service providers to adapt and thrive in a digitized world.
With strict regulations, complicated subject matter, and lack of consumer trust, financial marketing is no longer something you should handle in-house. When you choose CMG, you gain access to a talented team of financial service marketers who merge left-brain buzz with right-brain brilliance.
As a dedicated digital marketing agency, we put our time and technology resources towards
creating strategies and solutions that help you create a future-proof marketing strategy that articulates your purpose and boosts your profits.
Request a free consultation today.