The banking industry is expected to see some key marketing trends that will influence how financial institutions connect with customers. Here are four current trends that are expected to shape bank marketing strategies in the coming year:
Say goodbye to tracking your users with cookies!
As we predicted years ago when the California Privact Protection Act started to be discussed, the end of cookies is here with recent changes from Apple and Google’s Chrome browser. This development will significantly impact how banks approach digital advertising and must be addressed to maintain marketing performance.
Marketers will find it challenging to track consumer behavior online and target them based on their interests without third-party data. Therefore, alternative approaches are essential, such as building and using ‘first-party data’ or data generated by customers doing business with the bank. For example, marketers can tailor messages, provide advice, and present customized offers or sell a product by having a database of each customer’s email address and phone number and monitoring their behavior on the bank’s website.
This new reality implies that data gathering, management, and focused analytics have become even more critical. Moreover, marketing automation is necessary to target personalized offers and tailor campaigns to customers exhibiting specific behaviors while operating in a cookie-less environment.
Rise of Omni-Channel Marketing – With consumers increasingly using multiple channels to interact with banks, omni-channel marketing will become a key trend in 2023. Banks will need to offer consistent, seamless experiences across all channels, whether it’s through online, mobile, or in-person banking. Providing personalized content that is tailored to each channel will be crucial to engaging customers and building lasting relationships.
In 2023, banks will focus on improving customer experience as the key differentiator. Customer-centric marketing strategies will be vital for success, with personalization at the forefront of these strategies. Banks will leverage data and analytics to gain insights into customer behavior, preferences, and pain points, allowing them to offer personalized products and services that meet individual customer needs.
Deposit Wars: Strategies for Winning Customers and Deposits
Who could have foreseen the current state of deposit rate competition just six months ago? With pandemic stimulus deposits flowing out of banks and the recent large-scale collapse of several prominent banks, deposit outflows have become a huge problem. Clearly, stopping this outflow is of paramount importance for banks.
Bank marketers have resurrected their CD growth campaign playbook, and sadly yes, we are seeing the return of rate ads in print newspapers. Bank marketers must be savvier than simply having the highest CD rate in town. Cutting-edge marketers will leverage data analytics to identify prospects in their markets which are likely to have large deposits at other banks and create targeted offers that are too good to resist.
Over the last month, we have seen these deposit growth programs feature not only CDs, but also high-yield savings accounts and money market products that are designed to attract new money and alleviate fears caused by the SVB debacle.
Staying on top of regulatory changes
The compliance and regulatory landscape is rapidly evolving, and banks must keep pace with the times. Two major shifts are on the horizon: first, striking a balance between the benefits of digital marketing and the escalating compliance risks; second, forthcoming changes to data privacy laws that will transform the marketing landscape in 2023.
Bridging the gap between compliance and marketing will be vital to managing risk and achieving the banks’ business objectives. Campaigns, products, and marketing techniques will need to be “risk-rated,” and compliance teams must consistently complete appropriate documentation on reviews, approvals, and mitigating factors. This will enable a more in-depth review to be focused on campaigns with high-risk components while streamlining the approval process for others.