The financial sector has been slower to adapt to changing technologies, perhaps because financial personnel become used to operating in a specific way and also because there are strict regulations governing privacy, data protection, and compliance.
In light of this, financial companies have tended to take a more cautious and conservative approach to innovation. With the speedy advance of online and digital marketing, however, smart organizations are making use of strategies to change that. Here are a few examples of how this is happening.
Connecting with customers
Social media has changed the way that people communicate, how businesses reach out to customers and also the way in which business to business relationships are developing. It has been a challenge to integrate traditional marketing techniques with social media yet Millennials or Generation Y have grown up with technology and often turn to social media when making decisions about products, including financial ones.
Some key trends for 2016
As customer awareness rises to the top of the priority list for the financial sector, people, not products are becoming the focus for development. This means marketers need to analyze their customer base and also the value they are providing to choose how to communicate about this value in the wider marketplace.
This is likely to result in the development of new business models for banking, as online interaction with customers replaces costly branch networks, at the same time generating more profit. Customer experience has become a crucial factor in how financial companies are perceived and evaluated by their clients.
Today, more people than ever are using mobile devices to access personal and business information. The financial sector needs to ensure its online activities are flexible enough to take account of different sized screens and optimize websites so they are responsive to client needs.
Generally, well-established firms that have been good at adapting to change and diversifying are well placed to make the most of new digital marketing opportunities.
For example, Fortress Investment Group LLC is a leading investment management firm. It has a global presence and an immense and diverse portfolio. Co-chairman and principal Peter Briger has more than twenty years’ experience in the financial sector and has overseen many new developments while holding a variety of management roles.
Like other members of the company, Briger engages in philanthropic work in support of charities as well as in business. These community programs are powerful in terms of their impact online – people viewing the company’s website or Mr Briger’s LinkedIn profile are immediately aware of the human and humane side to the business. This reinforces the positive qualities of the brand.
In addition to online banking that works for mobile devices, online marketing now needs to do the same if financial companies are to continue to attract and retain new business. This is where content quality can make a big difference – when it comes to website ranking, Google has already moved towards identifying appropriate and relevant content as opposed to keyword stuffing. This trend is likely to spread beyond Google to other search engines, so the financial marketing sector must pay heed.
Finally, those financial companies that are creating a presence on Facebook, Twitter, and other platforms are beginning to reap the benefits – gaining followers and attracting attention. Generally, a combination of useful tips and a certain level of self-promotion can achieve that, as long as the balance is right. It helps if financial companies position themselves as friendly, knowledgeable and trustworthy