Garnet Capital Advisors Blog

Digital technology has taken over the marketing realm for all industries, including banking. Digital technology has literally changed just about every aspect of business life, including the financial industry. And one major aspect, in particular, that digital technology has transformed is the marketing scene. It's no secret that marketing - particularly online - is a crucial component of running a successful business, and digital marketing campaigns are taking front and center. It's estimated that digital ad spending will increase 14.5 percent this year over last year to hit the $7 billion mark. This platform is becoming so highly integrated into marketing strategies that any business that does not adopt it will surely lag far behind the crowd. It's important for banks and credit unions to quickly adapt to these rapid changes, and implement sophisticated digital marketing technologies in order to engage consumers the way they want to be engaged. But banks are traditionally conservative in nature and have a tendency to be slow to change. In fact, less than 15 percent of banks currently have advanced digital marketing policies in place. Considering how digital the banking experience is for clients today, it's somewhat surprising that many banks still depend largely on traditional retail marketing. This couldn't be more dangerous in our technologically advanced world, where the digital platform increasingly continues to transform businesses in every aspect. Yet while some financial institutions may be holding back by being stubborn to change, they, more than the majority of businesses out there, must make a valiant effort to become digitized just like in every other industry, and adopt new methods of marketing into their overall strategies. Investing in Online Marketing and IT Services It's time that banks focus less on innovating their products and start putting more emphasis on the client's overall experience. Banking marketers must consider who their customers are, the value they are receiving, and the most effective way to communicate this value in the marketplace. Among the important components of new digital marketing strategies for banks is marketing automation, which allows financial institutions to automate and track marketing tasks in order to increase efficiency of operations and boost revenue. By automating their digital marketing, banks can easily streamline the tasks associated with digital marketing, such as lead generation, email campaigns, customer retention programs, social media platforms, and so forth. Embracing Big Data With the advent of digital technology, it's high time that financial institutions start thinking seriously about big data. Nearly two-thirds of companies across every niche have already been planning big data initiatives, or already have them in play. But rather than strictly focusing on infrastructure, it's important to also consider whether or not it stimulates practical strategic insights. Falling behind as far as digital marketing is concerned can have dire consequences for financial institutions. Not only is big data important, the type of big data is key. It's not the amount of data stored that matters, but rather, the right kind of data to provide insights that encourage marketing and business decisions. At the end of the day, big data represents a major strategy shift, and not necessarily a bunch of new technologies. Keeping Customers Engaged Consumers of today are savvy, and are making buying decisions in a market that's becoming more and more crowded. Mobile technology is where it's at, and banks need to capitalize on this component of the digital market in order to keep their customers engaged. Using mobile platforms can help financial institutions to develop and grow relationships with their clients. Many Banks Have Already Hopped on Board Banks will find that adopting a highly digitized marketing strategy will do wonders for their bottom line. Take Prudential Financial, for instance, which recently launched a social media marketing campaign entitled "Bring Your Challenges Campaign." The company realized great success as a result, which inevitably helped the company connect with clients virtually online. Social media can be used as an effective channel to be leveraged in order to engage clients. Credit Suisse is also taking part in a form of digital marketing. For starters, they've got an online publication called "The Financialist" which covers original feature stories, informative infographics, and third-party content. By engaging customers, they've been successful at killing two birds with one stone: increasing brand awareness and attracting new customers. Clearly, there are advantages to adopting digital marketing platforms. By leveraging social media, marketing automation, and all else that falls under the digital marketing umbrella, banks can realistically see the benefits of engaging with clients and developing relationships online. Keeping up with current market trends can help banks successfully provide customers with a much more enjoyable banking experience. Embracing Digital Marketing to Grow Business We've already illustrated how much digital technology has taken over marketing strategies among the financial industry as well as other industries. We've also touched upon how important it is for banks to embrace digital technology in marketing efforts. It's time for banks to fully implement digital marketing campaigns to continue to remain competitive and grow their business. At Garnet Capital, we know what to takes for banks and financial institutions to be highly successful in an increasingly competitive market. We're also well-versed in the world of internet or marketplace lending, and the important role it plays in the financial industry. Sign up for our newsletter at Garnet Capital today to see how we can help your bank remain on the competitive forefront.