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
- 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.
- An example of a company that embraces this trend is Bank of America.
- 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.
- According to Frank Bien, the CEO of Looker, "Data is the new application."
- 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.
- Data analytics helps in the streamlining of financial services by service providers and improves customer experiences.
- 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 (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.
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.