It’s 2022 and the technological changes in financial services... well, everything in life... have never been more rapid or meaningful. It is not hype to say that the rate of technological change we are experiencing is exponential. While the banking industry has made progress, it has also seen its fair share of challenges on the digital journey. Marketing efficiently to customers and prospects is a big one. Marketing professionals have struggled between being ignored and being faced with unrealistic expectations, often wrestling with too few or not the right resources.
Interestingly, in the new paradigm of data-driven everything, transforming a bank marketing department from a necessary evil and cost center to a thriving profit center actively generating revenue is not a far-fetched reality.
Yet, many bank marketers are still entrenched in traditional ways of marketing. These marketing strategies and tactics are downright primitive in an ever-changing, rapidly expanding and flourishing digital economy. Banks must recognize that their account holders are in fact digital users. They are digital users outside of banking, giving them high expectations about all their digital experiences. And they are digital users inside banking, given that banking itself has become digital-first and mobile-first.
The question I ask in the headline is a valid one and bears thinking about. Why hasn’t bank marketing taken advantage of the digital economy more readily? This would guarantee that they transform dramatically - from a cost-center to one generating new revenue while also creating lasting long-term relationships with banking users. Even as the benefits are easy to visualize, the answers to “why not” are real and more complex. There are more than a few reasons why this is the case.
Digital is a journey not an app
Over the past decade, banks have made significant investments in technology. Virtually at the top of the list were digital banking apps – the main gateway for customers to transact with their banks. The priority and investment here have brought many benefits to banking consumers as their many transactions became virtual. This was never felt as acutely as during the current, enduring pandemic. Some banks declared victory when their digital banking apps took hold. Yet, while transactional activities took precedence, customer engagement was not top-of-mind.
The question that many banks failed to ask themselves is, are we doing enough digitally to let our account holders know that we “know” and value them? Ensuring that banks are engaged with their customers uniquely, at scale, is both important and continual. Engagement must be unique because each consumer is experiencing a different life state and distinctive financial odyssey. Accomplishing this involves a journey, not an event or app.
Change happens at the top
In a world of intense competition and tech savvy consumers, digital engagement is not only needed for a bank to thrive, but also simply to survive. How does it begin? For a marketing department to transform, the strategy and investment to do so must come from the top. How important is digital engagement to the bank? What tools and resources are needed to expand the digital universe of a financial institution? Does the marketing department have the authority to comply and seek out the solutions to help in this journey?
To change how marketing works requires bank leadership to inspire this important transition by treating modern data-driven marketing as a key growth strategy for the bank. This is in contrast to the classic, old norms of marketing and implies the development of high-level goals that will drive clear revenue objectives, data-driven strategies and the use of digital marketing technology powering legitimate marketing performance metrics.
Digital doesn’t mean “not human”
Interestingly, there isn’t that much additional investment that will be needed at most banks. You won’t be spending any more on marketing, but you will be spending it differently – in a way guaranteed to get you positive results. This digital marketing investment relies on data – business intelligence and artificial intelligence - to allow for smarter communication with consumers so that they understand that their trusted bank truly “knows” them and has worked to humanize every interaction, even though the medium is digital.
Inaction rooted in FUD (Fear, Uncertainty and Doubt)
Differing priorities, lack of clear direction, fear of change, uncertainty about results and confusion about available solutions – these are not small challenges faced by bank marketing professionals. It’s important not to underestimate these issues if your bank is motivated to make changes to be better equipped with the tools and resources necessary to get on a digital customer engagement journey. Rather, it’s important to recognize and address these genuine issues faced by marketing. [See “Change happens at the top”).
What if?
What if there was clarity of purpose, a strategy for growth, a transition path to digital engagement, and the ability to source practical solutions? It’s not about having the newest shiny object but instead a reliable and robust tech platform that is driving new sales for financial institutions every day. Proof and results matter. Such a solution can help your bank grow by simplifying digital marketing with amazing customer experiences that result in up to 10X new product sales and lasting long-term relationships with your digital users.
This is guaranteed to revolutionize a bank’s marketing department into a future-proofed, thriving profit center. Who is ready?
