The future of financial marketing: personalisation, agility and privacy
Every APAC market is unique, but they all stand out for their resilience and rapid adoption of technology. And overall, we are seeing the rapid adoption of technology in the region, a dynamic that is only improving with the COVID-19 pandemic.
Impact of COVID-19 and rejection
As the world learns to create the difficult landscape caused by the rise of COVID-19, economies, and industries are doing their best to continue their business in this ‘normal new world’. For the financial services industry (FSI), this has meant a shift in their multiple strategies, including how they have historically approached corporate and consumer engagement.
Consumer expectations have evolved at an unprecedented pace in the past year and businesses are struggling to meet these ever-changing needs. Digitization is no longer an option for banks in the region; instead, it has become the top priority. 75% of the Tier 1 banks in the region plan to implement large-scale smart automation solutions by 2022.
The need for effective customer engagement and personalized experiences has never been more urgent and has become much more urgent due to COVID-19. The marketing guides are reviewed by the marketing leaders of these companies to identify best practices that can improve customer experience, engagement, and loyalty. The increased preference for contactless digital consumption in all markets, if executed correctly, could open the door to the building and foster brand loyalty.
Navigate the maze of data security and customer experience
The uniqueness of this evolution is that APAC consumers are relatively more open to sharing their data with brands than consumers in North America, South America, and Europe. There is a general trend and preference for personalization and better quality among this group of consumers: according to a recent survey, 69% of APAC respondents are willing to exchange personal data in some way to improve the user experience. This openness to consumers means that many FSI brands in Asia-Pacific are going digital faster than comparable brands in other regions.
This is not to say that customers here do not value data privacy. As Laurent Bertrand, CEO and co-founder of BetterTradeOff (BTO), a financial planning platform based in Singapore, points out, “Nowadays, users of the technology platform want to know if their data is being used correctly.”
Use data to build customer loyalty and build a successful technology stack
The latest 2020 report from the Global System for Mobile Communications Association shows that 64% of Asia-Pacific residents are already smartphone users and predicts that this will increase to 80% by 2025. As markets and consumers become more mobile, brands may want to talk and talk directly to more customers. This change also highlights the personalized nature of mobile communications – consumers now expect brands to know more and even communicate their needs and preferred method of using messaging. And if brands don’t live up to expectations about personal experiences, they can lose consumers to competitors.
Fortunately, there are new technologies that can make it easier for brands to use data from a wide variety of touchpoints to understand how each customer interacts with them and deliver a more consistent and personalized brand experience.
The impact of a cookie-free world on marketing
One of the most important changes the financial services industry must prepare for is overcoming the fear of a raw third-party world. Leading technology platforms such as Google and Apple are eliminating the use of third-party cookies, which have historically been an important way to track customer behavior across the web. To respond to this changing landscape, brands must define their own primary data partnerships or partnerships with businesses using alternative methods, such as third-party cookies.
As the world slowly recovers from the COVID-19 pandemic, it is time for companies to prepare and act in the future to take advantage of new technologies, new approaches, and new market realities. To stay ahead, financial services firms must leverage raw data and the best marketing stacks to change the way they treat consumers and deliver the consistent, personalized multi-channel experiences they expect.