By Nicole Garrison
As the finance industry
makes the shift to digital, financial marketers are facing various challenges
as they struggle to keep pace as market and consumer trends evolve.
The past several years
have seen revolutionary changes in the finance industry, particularly in terms
of technological innovations, regulations, and customer experience. This, in
turn, has triggered various changes in the way financial services promote their
products and brand.
However, despite all
the changes that have been made, many players in financial services are still
slow to adapt to new trends and technology. In today’s digital world, the
inability of the industry to adapt to technology and reach customers
effectively can create a number of challenges for financial marketers. Here are
the 10 biggest challenges financial marketers face today:
Every marketing effort
should lead to a result that proves the efficiency of the action. However, with
so much data available, it can be challenging to determine which metrics are
really important and why.
According to a 2018 report from Adobe
Digital Trends in Retail, 19 % of marketers make data-driven actions that help them
achieve significant results. Meanwhile, according to ITSMA and Vision Edge
Marketing, 74% of marketers lack the ability to
measure and analyze how their marketing efforts impact what they are promoting.
Relevant data is vital
for creating a marketing strategy that can lead to positive results. In fact, 88% of marketers believe that using
relevant data is the best way to get a better understanding of each customer’s
expectations and needs.
However, financial marketers
face the challenge of being unable to collect, assimilate and analyze data
efficiently. The finance industry uses systems that are often too old for the
big data volumes that exist today, which means financial marketers are only
working with a partial picture of their customers and their needs. Having a
system in place to capture and digest data presents a valuable opportunity for
financial marketers to engage with customers in a more targeted, personalized
and engaging way. Here we look at how finance marketers can harness and use data to market in a
more effective way.
According to 2019 data from Statista, mobile devices
accounted for almost 48% of web page views all over the world. Thus, an
important element missing from the digital strategy of many finance brands is
the distinct focus on the mobile experience delivered to customers. While
customers expect real-time mobile experiences from financial providers, many
financial marketers still place higher importance on their desktop experience
or fail to cater for mobile at all. And given Google favors mobile-optimized
sites, it’s not just customer experience motivating finance brands to pay
closer attention to mobile.
The existing regulatory
rules have a profound impact on financial service marketing. Financial marketers are
facing very strict rules around what they can and cannot include in financial
Strict regulations have
limited the creativity of financial marketers and forced them to rely their
strategies only on already well-established marketing methods that fail to
evolve to today’s trends.
In today’s marketing
world, customer experience has become one of the top priorities of all
companies. In fact, it is predicted that by 2020, the customer experience
offered by a brand will become more important than the price or product of the
company for consumers. According to HubSpot, more than 80% of companies worldwide who consider
customer experience as a top priority have experienced a significant increase
Today’s consumers want
to feel that companies fully understand their needs and will be given
personalized solutions based on them. However, compared with the older
traditional finance brands, new fintech players who have joined the market have
a customer-centricity mindset that focuses on offering top customer experience.
The reputable older financial institutions have to compete with the new market
enters who have fewer customers and more opportunities to provide them with a
personalized experience. Newmarket entrants take a better look at what people
need and develop their services together with their customers. For example, the
digital mobile-only bank, Monzo has created a
community forum and a dedicated Twitter account where customers can provide the
company with feedback and contribute to the creation of new features.
Adapting to the
21st-century market and customer trends in an industry that still heavily
relies on 20th-century processes is a huge challenge for financial marketers.
Failing to make the shift to digital, as well as the appearance of new market
entrants are the primary aspects that pose a real threat to the financial
services market. Today’s customers are no longer loyal to older reputable
financial brands as they are moving forward to more flexible and convenient
digital options such as the ones offered by new fintech players.
Since the finance
industry seems to struggle with collecting accurate customer data and to manage
it efficiently, another challenge arises that addresses their understanding of
the customer journey.
customer journey is one of the best ways to understand the individualized needs
of each customer and to provide them with personalized solutions. It takes an
effective collaboration between the customer-oriented departments within an
organization to create a relevant journey mapping. According to Forbes, 75% of customers feel more motivated to
purchase products or services from a company that addresses them by their name
and recommends them products based on their purchase history.
Perhaps the biggest
challenge financial marketers face is reestablishing a good reputation and
regaining customer trust. The finance industry has a bad reputation when it
comes to cybersecurity or the security of the money of its customers. In fact,
after a long time of having a bad reputation about security, according to
research conducted by PwC, only 32% of the
respondents claim that they still trust banks or financial institutions.
Thus, financial marketers face a real challenge in regaining customer trust and
However, a bad brand
reputation can be corrected with an effective content marketing strategy.
Financial institutions can start by running some searches on their brand and
identify all the mentions of their organization. Addressing customer complaints
online is another important step to improve a poor reputation. Positive and
engaging content in the virtual world is also vital. Tools such as TrustMyPaper, Grammarly, GrabMyEssay, or HemingwayApp are great for comprehensive and engaging
content that will correct a bad brand reputation.
Nowadays, the finance
industry has completely changed and no longer relies on brick and mortar
traditional banks or financial institutions. The financial market was innovated
by new entrants which bring customers improved flexibility and convenience.
consumers prefer services that allow them to do everything with just a click of
a mouse or a tap on their smartphone screens. Thus, new market entrants that
provide them with virtual financial services options are a real challenge for
older financial institutions who failed to adapt to technology. According to
Statista, while in 2018 almost 61% of Americans used
digital banking, the percentage is expected to reach 65.3% by 2022.
Another aspect that
raises challenges for financial marketers is the limited differentiation
between financial services providers. All financial services offered are pretty
similar so it makes it really difficult to convince consumers to choose a
provider in favor of its competitors.
Nowadays, the most
popular reason why consumers choose a financial provider over another is based
on convenience and customer experience. For example, since personalization is
vital for the best customer experience, 85% of customers want to receive text
alerts and notifications regarding their account activity.
In today’s era of
digital banking, customers expect for financial providers to have more than
just a mobile app. As today’s consumers have more twice as many
interactions with companies using their smartphones than in any other way, they want
to see brands to go fully digital not only with the services they provide but
also with their marketing strategy. Financial marketers need to invest in more
than just a few social media ads to attract customers. They need to use big
data and AI to provide customers with personalized offers in real-time.
As the digital banking
revolution has begun, financial marketers face various challenges when it comes
to promoting financial institutions that fail to adapt to technology.
Addressing these new challenges of marketing financial services comes down to
shifting to strategies that reach the expectations of today’s customers.
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