By Toby Strangewood, co-founder, Wake the Bear
I saw some data last week compiled from WSJ Markets and Public Annual Reports that showed how UK-based neo banks including the likes of Monzo and Revolut are still dwarfed in terms of deposits by the legacy banks including Barclay’s, HSBC and Lloyds. These legacy banks were framed as the old guard, the antiquated past of banking by the shiny and bright card coloured neos as they launched. However, the neos are still seemingly struggling to capture deposits.
Many years ago, before the rise of the neos, I worked with Vancity Bank in Canada. They were, like much of Vancouver, way ahead of their time in terms of sustainably and ‘good business’ practices. But they did still have a huge churn in customers who would switch banks once they started getting ‘proper jobs’ with higher salaries.
These same people who loved everything that Vancity stood for at the time still moved their money to ‘safe’ and ‘grown up’ banks where they trusted their money would be safer – regardless of what they felt about the bank logo at the top of their statements.
From individual customers to corporate clients, stakeholders need assurances that their financial partners are credible, reliable, and capable of safeguarding their assets against the volatile tides of global markets. Even the most cynical customers who are perhaps less enamoured with their current financial provider, especially their bank, often remain rooted because ‘better the devil you know’ is still built on trust.
All marketers will tell you that you have to earn trust and prove your trustworthiness, avoiding the marketing sin of saying ‘you can trust us’. Here are some fundamental parameters to ensure your marketing and communications earns that consumer trust, whether you’re a start-up fintech, or a legacy brand looking to grow and maintain your customer base.
Transparency is Key:
Financial entities must champion transparency in their operations and communications. This includes clear information on products, services, and fees, as well as openness about the challenges and strategies for overcoming them. A commitment to transparency reassures customers that a bank or financial service provider has nothing to hide.
Educate Your Audience:
The complexity of financial services often intimidates the average consumer. Educational content that demystifies financial products, explains market trends, and offers actionable advice can elevate a brand in the eyes of its audience. Remember to avoid the tone becoming parent to child, especially to younger audiences. It doesn’t land well.
Build a Community:
Financial brands should foster communities around their services if possible. Encouraging discussions, sharing success stories, and engaging directly with customers can create a sense of collaboration and loyalty. Such communities can also be more forgiving for product shortcomings, especially for new start-ups or on NPD.
Act Ethically and be Socially Responsible:
Today’s consumers are increasingly values-driven, choosing brands that reflect their ethical and social commitments. Demonstrating corporate social responsibility, whether through sustainable investment options or community development initiatives, can significantly bolster a brand’s trustworthiness. But remember, most people, despite what they may say, will still want their money in what they believe are trusted hands, regardless of whether you’re saving the planet or not.
In the rapidly evolving terrain of the financial sector, marked by technological advancements and shifting regulatory frameworks, establishing and maintaining trust is more challenging—and critical—than ever. Effective marketing and communications strategy that prioritises the aforementioned parameters can distinguish a financial services brand, encouraging both customer loyalty and acquisition.
About the Author
Toby Strangewood, co-founder, Wake the Bear
Wake the Bear is a Marketing & Media Agency that’s a specialist in navigating ambitious brands through their growth challenges. They’ve helped clients such as Stripe, NatWest, Check My File, and Legal & General. Toby previously led media strategy for Barclays and Barclaycard whilst at a global media agency.
Transparency in banking refers to the openness of financial institutions about their operations, fees, and challenges. It helps build trust with customers by ensuring they have clear information about products and services.
Consumer trust is the confidence that customers have in a financial institution's ability to safeguard their assets and provide reliable services. It is crucial for customer retention and loyalty.
Corporate social responsibility (CSR) is a business model where companies integrate social and environmental concerns into their operations. It enhances brand reputation and builds trust with consumers.
Neo banks are digital-only banks that operate without physical branches. They offer financial services through mobile apps and websites, often targeting tech-savvy consumers looking for convenience.
Customer churn refers to the rate at which customers stop doing business with a financial institution. High churn rates can indicate dissatisfaction and are a critical metric for banks and financial services.
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