The year 2019 has seen its fair share of relevant and interesting articles about the financial sector. Experts have expressed their opinions over the last few months about various aspects of the industry. Up-to-date research about how the banking industry can learn from retail has recently come to light. There have been articles published about how companies can tailor customer service to meet the needs of today’s consumers. There have even been online discussions about the pros and cons of partnering with Big Tech firms to supply services. Here, we round up some of the fascinating insights into the financial sector from the past year.
1. Could In-Branch Video Be the Key to Better Customer Service?
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BobsGuide is a blog that connects users and providers of financial technology. It recently published an article about customer service. With an increasing drive toward digitization, how can banks continue to meet the needs of their customers effectively? An article from Dec. 4, 2019, suggests that the solution could lie in in-branch video technology.
Despite the move toward online banking, customers still appreciate face-to-face contact when they have complex issues. In fact, a recent survey showed that two-thirds of all bank customers still favor personal interactions with their banks. With this in mind, this article considers the possibilities presented by adopting video banking facilities inside physical branches. Since the above chart shows the correlation between banking performance and customer service quality, it could be worth a try.
2. Can Banking Learn from Retail?
An article from International Banker presented the possibility that the financial industry could learn from the retail sector. Doug Gross, NGDATA’s CEO, expressed his belief that subscription services could be the way forward for banks. Financial service providers have been charging monthly fees for some time. However, customers have expectations of what they should get in exchange for those fees.
Meanwhile, the same customers are increasingly signing up for subscription box services through which they receive tailored products. The chart above shows that subscriptions are becoming increasingly popular in the United States. Deloitte’s recent research shows big-name brands, such as Apple, outperform banks by 12 percent in terms of quality and convenience. This article looks at how banks can offer personalized services to customers in the same vein as the retail sector.
3. Is Artificial Intelligence the Future of Banking?
A November 2019 article on the Finextra website discussed the role of artificial intelligence in the financial industry. AI is no longer in an experimental phase. Many banks have already adopted it to improve the customer experience. The latest developments in AI will enable banks to offer consumers a fully personalized service. The chart below shows how banks are already using artificial intelligence. This is only just the beginning. The future holds a lot of exciting potential for AI across all aspects of this sector.
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However, numerous pitfalls could present a host of problems for the sector. Regulatory concerns and a lack of confidence in data are two major issues banks must address. Yet, it is also clear that the adoption of AI is no longer just a “best practice.” In fact, it’s key for any financial services provider that wants to remain relevant and competitive in the next decade.
4. The Risks of Partnering with Big Tech
Google has recently released news of its partnership with two major financial organizations to offer checking accounts. This has, naturally, caused waves in the banking community. Will banks and credit unions that fail to partner up with Big Tech companies fall by the wayside? Amazon, Lyft, Apple, and Facebook are just four big-name brands to have forged such partnerships. Although there are clear benefits on both sides, there are some risks, too. Privacy conflicts, biased search results, and unexpected results are just some potential issues. This article reviews the possible pitfalls that face financial institutions that are considering entering into a similar arrangement.
5. Is E-mail Marketing the Best Way to Retain Customers in the Financial Sector?
A recent marketing study showed that two-fifths of consumers never receive relevant e-mails from their financial service providers. The latest fintech brands are gaining ground in the industry. Therefore, it is no surprise that the traditional financial sector needs to up its game. This article suggests how e-mail marketing could be the key to improving customer retention within the industry. By personalizing e-mails, incorporating educational content, and communicating convenient options, banks can regain lost ground.
6. The Importance of Visual Marketing in The Financial Industry
Content is key across all sectors. The same holds in the financial industry. Visual marketing is an especially important tool to harness in this sector. This article outlines the secrets of operating a successful visual marketing campaign. Well-written content is always going to be essential. However, the industry shouldn’t underestimate using the power of infographics, images, and videos.
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We can see from the above chart that there is a growing demand for visual content. This is relevant across all sectors, including the financial one. By 2021, the market will be an extremely lucrative one. It is also one that banks and other financial organizations must take advantage of.
Visuals can address customers’ questions, make complex information accessible, and offer interactive potential. A company can achieve all this in an easily digestible way. This is extremely important. Consumers remember 65 percent of the information presented in both text and visuals three days after viewing it. In contrast, they remember just 10 percent of the information presented solely in the text after the same period.
7. Storytelling and Its Vital Role in Financial Services Marketing
B2B marketing has been harnessing the potential of storytelling for some time. Now, the financial services sector needs to get on board with this trend. By telling stories about a service or product, banks and financial service providers can connect more effectively with consumers. This article from Forbes explores the possibility of storytelling even within the relatively dry financial sector. By communicating ideas in this easily accessible way, financial organizations can show their human faces. They can transform traditional marketing messages into engaging stories that elicit consumer emotions and encourage people to make decisions.
8. Creating the Perfect SEO Strategy tor Financial Service Providers
Forty-five percent of finance marketers report they create their content on an ad hoc basis. In today’s competitive environment, this simply isn’t effective. Developing a well-planned and efficient SEO strategy is, therefore, essential for financial service providers. This article outlines some tips that marketers can utilize to maximize their ROIs and extend their reach. By making content useful and consistent and gaining an in-depth understanding of the target market, banks can improve their business.
Rounding Up the Year
The above articles all make fascinating reading for anyone in the financial industry. They explore the possibilities of new technologies, such as artificial intelligence, in-branch video links, and partnering with Big Tech brands. They also look at the increasing importance of effective content marketing strategies in this sector. From adopting storytelling techniques to harnessing the potential of visual marketing, these articles offer useful information. For any financial institution looking to improve its competitiveness and extend its reach in 2020, they should be essential reading.