Financial Services Marketing Trends

Part
01
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Part
01

Insights and Trends - Financial Services Digital Marketing: Part One

The current trends surrounding financial services digital marketing include switching to mobile technology, internet advertising, use of data explosion through artificial intelligence and data analytics, and account-based marketing.

Trends Surrounding Use of Marketing Channels

Mobile Marketing

  • According to a report in 2018, 51% of the world's population had access to the internet, and this represented a 6% year-over-year growth.
  • Therefore, financial services are shifting their marketing to channels that are accessible through mobile devices to reach many people, and this is a trend as consumers tend to spend a lot of time online.
  • Mobile marketing is one of the best ways for financial services providers to reach their audiences.
  • Marketing campaigns, updates, and ongoing communications for financial services providers are shifting to social media platforms, which are accessible through mobile devices.

Internet Advertising

  • There has been an increase in internet ad spending by financial services digital marketers, and Google and Facebook are their primary partners.
  • There was a 22% overall growth in ad spending for digital marketing of financial services, and Amazon, Instagram, Twitter, and Pinterest are among the platforms used for internet advertising.
  • Internet advertising is a trend as financial services continue to increase the use of internet marketing to achieve their goals as traditional advertising methods are growing less popular.
  • Internet advertising includes the use of visuals on social media, and this increases the number of followers for financial services companies.
  • An example of a company that embraces internet advertising is Bank of America.

Current Trends Surrounding The Use of Data Integration and Analytics

Use of Data Explosion and Analytics

  • There is an increase of accessibility to digital tools that include machine learning and data analytics to financial services, and businesses have access to a lot of data.
  • The fact that many companies offering financial services have embraced data explosion makes it a current trend in the industry.
  • Also, Meeker believes that data is becoming more valuable as it is important for consumers and industry regulators as it is collected and stored in the cloud for analysis by artificial intelligence tools.
  • Some companies that offer financial services have established the need to set up social media accounts for the provision of customer support as a result of their data analysis, for example, the PNC Bank.
  • The company resolves customers' issues through twitter threads and direct messages in the cases of sensitive data.

Improved Data Security and Privacy

  • With the increased availability of consumers' data on the internet, customers are becoming increasingly concerned about the security and privacy of their data and companies are embracing new ways of ensuring data security and privacy, which makes it a trend in the industry.
  • Thus, financial services strive to make digital communications safe for their consumers, and by 2018, 87% of the global web traffic was encrypted.
  • Ensuring data security and privacy is a trend as it is being used as a selling feature by financial services to customers amidst the discussions of data security and privacy protection rules.
  • Also, the increased use of mobile apps necessitates the need for data security and privacy to ensure that consumers can access secure financial services seamlessly without compromising the accessibility of mobile apps.
  • For instance, banks use two-factor verification for customer authentication and identification to offer access to any services that clients may need.
  • An example of a company that ensures data privacy is Capital One, which was compromised by a hacker before they decided to invest in customer data security systems.

Current Trends Surrounding The Role Played By Audience Segmentation

Account-Based Marketing

  • Account-Based Marketing (ABM) is a trend because financial services are increasingly adopting this marketing method to reach out to more target consumers.
  • This marketing approach requires that financial marketers target a company rather than individuals and then figure out the roles of the individuals and how the information acquired increases lead through the financial services' marketing and sales.
  • ABM was among the top three efforts that help in marketing according to a survey by Demand Gen on some B2B marketers.
  • Some companies educate their consumers on financial issues, and an example is Morgan Stanley.

Consumers' Digital Empowerment

  • There is an increase in the number of financial services consumers who are digitally empowered, and this is due to the large segment of Generation Z customers who access the internet the electronic devices.
  • The increased online presence of financial services consumers makes it a trend in the digital marketing of the services.
  • Thus, financial services strive to increase their presence online to reach out to these clients and offer updates on their services.
  • An example of a company that uses online presence especially in engaging Millenials in their marketing is Wells Fargo.

Research Strategy

To provide six current trends surrounding financial services digital marketing, we searched through trusted reports on the topic and publicly available websites including the Financial Brand and Finance Monthly. Also, the research team perused through available trusted blogs authored by industry experts to identify examples of companies that embrace the identified trends in the financial services of digital marketing. The examples of companies that have embraced the identified trends include Wells Fargo, Bank of America, and Morgan Stanley.
Part
02
of two
Part
02

Insights and Trends - Financial Services Digital Marketing: Part Two

Voice assistants and voice payments are among the top trends in conversation banking in 2019. In content marketing, financial institutions are using personas to tell stories and incorporating video to reach their audiences effectively. Presented below are full details of six current trends surrounding financial services digital marketing.

Trends Surrounding Use of Emerging Media and Technology

Voice Assistants

  • Presently, approximately 75% of iPhone users have used Siri, and an estimated 63% of Android users have also communicated via a virtual assistant on their smartphone. Likewise, many banks and financial firms are offering conversation banking solutions to their customers.
  • Voice payments, according to several fintech reports, remains among the top trends for voice solutions in 2019 and is expected to continue. Intellias forecasts that in the future, voice solutions will provide bank users with more services like requesting loans, paying taxes, renewing insurances, issuing invoices, etc.
  • Voice assistants have been adopted by many financial institutions, including Ally Bank, which has been using Ally AssistSM, a customer voice interaction solution since 2015, and has made significant improvements in its functionality. Other examples of banks that have rolled conversation solutions include "Bank of America, Capital One, and USAA."

Voice Payments

Trends Surrounding the Role Played by Content Marketing

Educating About Products and Services Using Video

Use Personas To Tell Stories

Trends Surrounding the Impact of Industry Regulations

Open banking Regulations

Dodd–Frank Regulations

Research Methodology

Your research team uncovered six current trends surrounding financial services digital marketing on aspects of regulation, the role of content marketing, and emerging media and technology. We started by examining reports on financial services trends, specifically to the highlighted aspects above, i.e., aspects of regulation, the role of content marketing, and emerging media and technology in the financial services sector. There were numerous reports in public and some paywalled with comprehensive data regarding the trends surrounding financial services digital marketing.

Next, we narrowed down our focus on the key trends around emerging media and technology, as published by fintech companies like Intellias, The Financial Brand, and Go Medici. Regarding the trends surrounding the role played by content marketing, we found compilations of information on many websites, including Brandpoint and Finance Magnates. Likewise, for trends surrounding the regulatory framework, we examined several business websites such as Forbes, Investopedia, the Federal Reserve Bank of Philadelphia, Edge Verve, and Disruption Banking.

Lastly, to determine why each trend qualifies as a trend, we examined the impact it has on the financial services sector, how often it is repeated in business and finance reports, and which banks or financial institutions have leaned into the trends. On that note, examples of banks and financial institutions leaning into the trends.
Sources
Sources

From Part 01
Quotes
  • "Here are six that are of the most importance to financial services decision-makers and marketers heading into 2019."
Quotes
  • "In 2018, 51% of the world’s population was connected to the internet (3.8 billion people). This is the first time that more than half of the world’s population is online, according to Meeker, and represents a 6% year-over-year growth. The growth may not be sustainable, however, since global smartphone shipments saw -4% year-over-year growth."
Quotes
  • "Account Based Marketing (ABM) involves how marketers address business customers by focusing on a company rather than individuals — figuring out who is at that company, what all the roles are, how it all fits together, and how that information is used to nurture leads through the sales and marketing funnel. Taking this new approach could have huge implications for the way financial marketers think about- and target small businesses."
Quotes
  • "In 2019, Financial Services consumers are more digitally-savvy than they were 5 years ago. This is mainly due to the large segment of millennial consumers who are well-versed in using the internet and electronic devices such as smartphones and laptops. "
Quotes
  • "Wells Fargo, however, combines the perfect mix of videos and images on in its social media accounts. The third-largest U.S. bank, long a digital banking pioneer, covers a wide range of topics on social media channels — with topics of interest not only to Millennials, but even academic audiences. The mix of social media content includes events, financial tips, quotes, and fun facts."
Quotes
  • "Financial institutions manage a large volume of sensitive information about their customers. However, the protection of sensitive data in line with regulations, both for banks and other financial services organisations, is currently a big challenge. The way these organisations operate has changed dramatically in recent years. "