Business
Key marketing challenges for financial services brands
Global Banking & Finance Review®
Company
The difficulty with marketing for financial services brands has always been a matter of trust. As much as they need them, consumers have an almost innate distrust of banks, building societies, lenders, and financial advisors. The 2009 financial crisis exaggerated that. But even 15 years on, there is...
The difficulty with marketing for financial services brands has always been a matter of trust. As much as they need them, consumers have an almost innate distrust of banks, building societies, lenders, and financial advisors. The 2009 financial crisis exaggerated that. But even 15 years on, there is scepticism when financial services are mentioned, meaning that the effort behind any marketing endeavour has to be doubled to elicit any positive impact. And in 2024, 76% of people still say that they’d be more likely to trust financial advice from friends and family than from professional services- and that’s not the only marketing challenge facing this hypercompetitive industry. So, why is marketing so problematic for financial institutions, and what can businesses do to overcome the challenges they face?
Why is marketing so difficult for financial organisations?
Marketing has become more challenging over the last few years. Financial organisations have had to face not only the lack of public trust but also a reduction of funds—both within the business and amongst potential customers—driven first by the recession and then the ongoing cost-of-living crisis. There are also regulatory compliance issues and the changing marketing arena to deal with.
While businesses are scrabbling to engage customers, enhance brand differentiation, meet regulatory standards, and manage their budgetary restrictions, the established marketing techniques have been failing. Pay per click (PPC), banner campaigns, and social media ads are no longer generating the returns they once were. The public has become more discerning and more aware of algorithmic targeting and paid content, so businesses of all varieties have had to work harder to be seen and engaged with.
Which marketing approaches are working best for financial industries in 2024?
Trust has always been the sticking point for the financial services industry. Where trust is low, lead generation is always going to flounder, limiting the number of worthwhile marketing approaches. But there are a few that do better than others, whether used independently or collectively.
In the financial services sector, businesses must balance accessibility and trustworthiness. Brands need to be seen and spoken of, but they also need to be serious and respected. Finding a way to satisfy both needs is difficult. Leveraging your customers’ trust in you and your performance is one way to do that in a competitive and sometimes hostile landscape.
Kirsty Sharman is a referral marketing expert and founder of Referral Factory, which provides easy-to-use, plug-and-play referral software to help businesses of all kinds build, launch, and manage referral programs.
Trust in financial services refers to the confidence consumers have in financial institutions to manage their money and provide reliable advice without compromising their interests.
Targeted offers are marketing strategies that provide specific promotions or discounts to a selected group of consumers, aiming to increase engagement and conversion rates.
Content marketing is a strategic approach focused on creating and distributing valuable, relevant content to attract and engage a target audience, ultimately driving profitable customer action.
Personalization in marketing involves tailoring messages and offers to individual consumers based on their preferences and behaviors, enhancing their overall experience and engagement.
Referrals in marketing refer to recommendations made by existing customers to potential new customers, often incentivized by rewards, which can significantly enhance trust and credibility.
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