A Matter of Trust: What’s Important in Financial Services Marketing?:
In the 2017 FinTech Worldwide Report, LinkedIn, Capgemini, and Efma, it appears that today’s financial brands are 13 percentage points higher than their FinTech competitors (37% to 24%).
Joanne Bradford, CMO, SoFi emphasizes the importance of trust in financial services: “We believe that trust is number one, especially when it comes to your money. Speed inspires confidence. You can learn more about Joanne and other key figures on financial services in the World FinTech Report 2018 video.
The issue of confidence in financial services has been discussed in the financial crisis since 2008, but according to the Edelman Trust Barometer, the sector is still the least reliable. And this despite an increase of 11 percentage points between 2012 and 2017.
With the rise of FinTech businesses in recent years, the demand for confidence in financial services has become sharper: Are today’s banks disadvantaged if they have to compete with the new guys in the FS block?
Our FinTech FaceOff 2018 meeting with CapGemini and a partnership with 11: FS provided valuable insights into key figures in FS marketing.
How important is confidence in finances?
When it comes to personal and business finance, trust is a distinctive feature that customers look for in a provider. However, not everyone believes that the traditional banking system still offers a positive experience.
70% of millennials go to the dentist instead of to the bank branch. To build trust, you need to have products and experiences that belong to the consumer side, ”said Harit Talwar, CEO of Marcus via Goldman Sachs.
Confidence in global financial services is growing around the world, as this Edelman data shows:
• USA – 60% (6% more than in 2016)
• Hong Kong – 55% (1% more than in 2016)
• United Kingdom – 45% (4% more than in 2016)
According to Ralph Hamers, CEO of ING Group, it is the banking system that consumers do not trust, not individual organizations: ‘Of course, banks have always had this trust factor. Even in the midst of the financial crisis, there was a lack of confidence in the system, but not in real institutions. “
Who has the benefit of trust?
The answer to the above question may depend on the individual respondent and on which side of the fence they are currently. There are many examples of acquiring FinTech companies by using their goodwill using their innovative technology.
While established businesses need to embark on a sustainable program to rebuild trust, they enjoy an advantage over FinTechs, which initially had a long way to go to build trust.
On the other hand, FinTechs mainly have a technological advantage if it is not hindered by the old system, which has a technological advantage.
More than 7,500 FinTech businesses worldwide raised more than $ 109.8 billion in total. However, most are likely to fail for reasons such as:
• Could not find the right product-market
• The high cost of expansion
• Inability to find the right partner
How important is marketing in FinTech?
The average percentage of digitally active consumers in 20 world markets using FinTech services was 33% in 2017. It is expected to grow to 52% in the coming years.
The three key marketing strategies FinTechs used in EY’s 2017 financial technology approval index were:
• Build virality through references to ‘word-of-mouth’ references
• Establish a strong brand identity, mission, and ethics
• Targeted marketing activities by customer segments and the choice of personalized channels
Most FinTechs do not have large advertising budgets used by established companies, but they can use an advanced user experience to quickly gain oral advertising. One example is Robin Hood, the capital investment app that received nearly one million user registrations before its launch.
And whether FinTechs acts alone or possibly collaborates with a more established SF organization, marketing is the key to building an ‘inflamed’ user and customer base to attract customers, investors, and potential candidates to take notice.
Visit our Coin de Trust Content Center for more information on the trust of other marketers and industry experts, as well as the tools you need to build an authentic and enhanced relationship with your customers in a world of truth. build.