With technological advancement and evolving marketing strategies, the term ‘financial marketing’ is gaining huge significance. It has now become essential for financial marketers to have the required skills and knowledge to be able to cope up with the emerging trends in financial marketing. From artificial intelligence to personalized digital experiences, the financial services industry would continue to prosper more in the coming years. Here in this article, you will learn about the top 10 financial marketing trends to follow in 2020:
#1 Artificial intelligence marketing
The trend of AI is running successfully for years and will continue to grow in 2020. More than 70% of marketers have seen considerable growth in their revenue by incorporating the use of AI technology in financial services. Thus, to stay ahead of your competitors, you need to understand the impeccable merits of using AI-based systems as mentioned below:
AI and credit decisions: AI enables marketers to take value-based decisions by making a careful assessment of all potential borrowers depending on various determining factors, which leads to well-informed decision making. An AI-based credit system is a complex one as compared to the traditional system and helps to distinguish between actual risky applicants and those having valid credit worth.
AI and risk management: AI is a powerful tool in financial services as it analyzes real-time activities and gives correct predictions regarding the risk involved in a particular business environment. With the immense processing ability, AI helps to handle enormous data in a short period of time. It also separates the structured and unstructured data, which would otherwise be time taking if done by a human. The algorithm identifies risky cases and potential future failures quickly.
AI and fraud prevention: AI technology is boosting the ability to prevent financial frauds in business. With the increasing online transactions and e-commerce businesses, the risk of fraudulent activities is continued to increase more. For this, the fraud detention systems found to help analyze the customer’s behavior, buying habits, location and sends a security alarm if something is found contradictory to legal rules.
#2 Mobile marketing
Mobile marketing is a boon in the areas of the financial industry also. It has been noted that 87% of the adult population in the United States use mobile, and 57% of them use it for online banking operations. A significant number of potential customers could be lost when ignoring mobile marketing capabilities.
In addition to this, mobile marketing is also beneficial in informing users about various online banking functions. For example, the Chase Bank of United States timely notifies their users for taking advantage of online banking facilities in various states like checking account numbers, chase bank routing numbers, check credit card score, etc. on their mobiles only.
#3 Customer intelligence tactics for financial services
Customer intelligence is the most significant financial marketing trend for boosting revenue profitability and success. Here are the smart tactics for businesses to get intelligent about their customers and their emerging needs:
Live chat: Customers are not willing to dig deep into any website for finding any particular information. Therefore installing live chat is a great option to provide instant access to the customers for solving their requirements and enhancing their experience.
Live website analytics: To know more about your customer’s behavior and preferences, live website analytics is a wonderful option for this purpose. With this, you can easily analyze every visitor’s activity going on your website since each visitor could be a potential client.
Customer-centric model: Since digitalization is increasing rapidly, the expectation for speedy and personalized responses is rising among customers. The need for humanizing digital experiences is becoming urgent to provide the best experience to the users, which further leads to more profits and growth.
#4 Content marketing
It has been rightly observed that ‘content is the king.’ With the engaging, valuable, informative, appealing, and high-quality content, you can flourish in this highly competitive world. To meet the changing needs of the people, you need to be more creative with your content. Here are the content marketing trends to keep in mind for 2020:
Voice search optimization: The voice search is getting popular among larger audiences due to its convenience and ease. Many people are now choosing a voice search instead of typing a query in the search bar. So, it is essential to optimize your content according to voice search for your users. Financial content marketers need to provide conversational and suitable answers to the queries their customers would often ask for.
Adapt to the dynamic content requirement: By 2020, the trend of personalization will increase with the need for dynamic content delivery. It means to create web content based on a particular user’s demand, location, preferences, behavior, and choice. It would help in building an inter-personal relationship with the customers by giving them relevant and required response.
Conversational marketing: Conversational marketing such as email marketing, live chat support, facebook messenger has proven to be advantageous in facilitating one to one communication with the customers. With this, you will not only able to provide a personalized experience to your users but would be able to better cater to their needs.
#5 Video marketing
Video marketing is nothing new, but a dominant source of financial marketing marketers could use in 2020. It helps in keeping transparency in the financial operations and to demonstrate the explanation of complex financial products effortlessly to the customers. It is noted that 70% of customers have taken their decision about a product or service by watching videos.
With the increasing trend of Instagram and Facebook, the scope of video marketing is multiplying every year. People find video content more appealing, as it is easy to understand and convenient to watch. As compared to text, video gains more traffic if uploaded on a site or page. Therefore, the financial services industry is utilizing the competence of video marketing with brands spending $1.8 billion on videos in 2018, and it increased up to 13.1 % in the next year.
#6 RPA and Chatbots
RPA, i.e., Robotic Process Automation is nowadays, used by many financial institutions as it helps in saving huge time and cost along with reducing chances of errors. RPA software includes robots and virtual assistants to accomplish the specific human-based task appropriately without human involvement. It helps in enhancing customer experience by facilitating instant responses and accurate data to the users.
RPA with chatbots enables banks to focus on more prioritized tasks and leveraging minor or most frequent queries to be dealt with automatically. For instance, people usually search for their account number, payment related queries, and chatbots can easily manage this. RPA also encourages speedy regulation in the financial industry. Customers can now get quick response for their credit applications in an hour or two.
Cybersecurity holds maximum importance in the financial services industry as cyber-attacks continuously target it. Though it is not possible to prevent cyber attacks entirely as there are innumerable ways through which customers interact with their money online. But financial institutions need to come up with a reliable security plan in 2020 to lessen the amount of risk involved in online transactions.
Financial institutions should keep the public informed about their PII safety and other security issues. They should educate their employees regarding cybersecurity duties and the significance of adhering to the protocols prescribed to them. Other than this, they should also share their knowledge and skills with others to make the financial environment safe and secure.
Blockchain technology would again be a dominant trend in financial marketing in 2020. The use of blockchain is secure, accessible, and cheaper to keep track of transactions in a verified way. With more awareness about security, money management, and improvised customer satisfaction, more financial institutions are now adopting this technology.
Some widespread benefits of blockchain technology in the financial sector are discussed below:
Popularity in the banking sector: Blockchain is limiting the role of third parties in loans and credit operations, thus making it more secure to borrow money at low-interest rates. Thus, blockchain has transformed the banking and finance sector by decreasing the cost and need for human labor.
Know your customer: KYC is now mandatory concerning banks and financial institutions to bear the enormous costs involved in it. All such processes are time-consuming and required each bank or institution to perform it individually. However, with the blockchain technology, lots of time can be saved as one time did other banks could use KYC for client verification.
Fraud prevention: Interaction with money in any sector increases the risk of fraud. For the protection of this money, security becomes a prominent concern. This is because of the centralized database systems which are more vulnerable to attacks as the failure of information gets hacked by hackers easily. But now, with the blockchain, the issue of security has been resolved as it operates on a distributed database system, which is challenging to hack.
#9 Big data and analytics solutions
According to IDC Semiannual Big Data and Analytics Spending Guide, the banking sector is presently the top investor in big data and analytics solutions. The financial industry generates a lot of useful data related to ATM withdrawal, credit card transactions, etc. This data could be beneficial in making competitive business decisions and get natural insights into customer’s behavior. With this, financial institutions can learn about their consumer buying habits, risk assessment, and customer feedback. It not only helps in knowing the latest trends in the financial market but also reduces the risk factor.
#10 Personalizing digital experiences
The wave of digitalization has made it difficult to make a viable and suitable decision regarding any product or service online with vast choices available. Therefore it has become imperious for financial marketers to personalize the human experience to ensure the ultimate customer experience. Educate the customer about the pros and cons of a product through communication so that they can make a valuable decision. It is an older trend of financial marketing but would continue to grow only in the upcoming years.
So in order to maintain relevancy and competency in your business, you need to consider the top 10 financial marketing trends to follow in 2020.