It is no surprise that the recent Covid-19 pandemic led to the increasing use of technological innovations, promoting digitalization. During the past two years, countless organizations in several industries have reformatted how they deliver their services/ products. After all, they needed to do something to adjust their customer journeys to the new normal.
While various markets experienced a digitalization gold rush, financial research companies had a lead in the competition. Why? Well, companies in this market area have been using technology for some time.
That said, even with this leg up, customer loyalty in the financial services industry has been fragmented. Not to mention, the competition is high in this saturated market sector. What else? Several banks are using overdraft, annual, and transaction fees. The feature is almost irresistible for customers.
Then, how can financial services marketing stay ahead this year and in the upcoming years? Continue reading this piece to learn what the future holds for financial services marketing. We will also discuss the primary forces deriving the said future.
What does the Future Hold for Financial Marketing Services?
Truthfully, you could have obtained similar advantages by pursuing a professional career in the financial marketing service industry in the past. Today offers an exciting time to land a job in the new industry for aspiring financial services marketing professionals.
An entire range of competitors has entered the scene. They offer incredible new services and new products. Additionally, these companies provide excellent competition for new and emerging talent in the market.
Fintech, the use of technology in financial services companies, has attracted several new organizations and different types of firms in the industry. In an age where cross-border communication is just a click away, the part played by communications and marketing has shifted. Its focus has switched from brand recognition to proving how a firm can directly help its audience.
From one perspective, it offers a relatively straightforward brief for financial services companies. They only need to identify their target audience and curate their services/ products according to their potential and existing customers’ preferences and demands.
On the other hand, the target audiences are becoming much busier and more distracted than ever. They quickly switch between brands and companies, depending on what your competition might be offering them. Therefore, this approach may even present a few challenges.
In simpler terms, gaining the audience’s trust in today’s digital age is difficult. After that, your company must also retain it. For that reason, financial services marketing and messaging play a significant role. Not to mention, customer security and privacy are fundamental to attracting new consumers and retaining existing ones.
Several factors, including the evolving role of communications and marketing, new regulations, and the implementation of FinTech, affect the financial services factor- not to forget the advancements of technology and artificial intelligence (AI). The impact of AI, chatbots, and open banking suggests a greater demand for training, experience, and talent in professionals.
An organization’s recruitment policy must meet the difficulties of technological advancements and digitalization. With the communication channels expanding and multiplying, a massive trail of rich data gets left behind.
Not to mention, new and evolving regulation regarding its use also accompanies this collection of data. Let us not forget the fluctuating customer demands and how to meet them.
The Forces Transforming the Future of Financial Services
As already discussed, several things are responsible for transforming the financial services market. Well, powerful new forces have reshaped and changed society and the global business industry in significant ways.
With the emergence of a new human-centred economy, the financial services industry is experiencing is at its peak evolution. In simpler terms, it is pivotal seeing new opportunities and face various challenges simultaneously.
Many organizations and companies have been able to resort to public trust, gaining a significant customer base. They also hold the potential to cultivate a sustainable and inclusive business world without getting involved in trade-offs between social impact and profit.
Here are the primary forces that seem to be transforming the future of the financial services market.
Technology – Systems and Tools
Chances are that technological advancements and innovations like machine learning, blockchain, smart algorithms, artificial intelligence, and 5G may cause a dramatic shift in how financial services companies operate. These systems and tools will also likely affect how these firms serve clients.
Financial services companies are on their way to adopting new technologies and boosting their digitalization. Soon, these organizations will start utilizing new systems and tools to improve their customer interfaces, which can help them gain and retain customers.
Additionally, these innovations may enable better data sharing and more open collaborations while aggregating massive amounts of data. Not to forget, the risk of these new technologies and environments will present a changing landscape that may require extra attention.
Regulation will likely continue to play a critical role in determining the operation and success of the financial services industry in the upcoming years. It is also significant to how the market will respond to new technological innovations.
What else? Regulation can support experimentation in the industry to enable new business models that might prove beneficial. Open banking is an excellent example of such adoption of regulatory innovations.
Customer needs and demands keep changing and evolving. This evolution can mean significant changes across various segments. For example, institutional and retail customers increasingly expect firms in the financial services market to cater to them in more specific ways.
With time, meeting customer expectations, particularly high-value customers, will likely become much more crucial. It is necessary for better profitability and to encourage an expanded social mission.
Truthfully, delivering the expectations of average customers will not do much. It cannot maintain the revenue, let alone boost it. Newer features like augmented workforces and advanced technology can help empower organizations to perform their roles in more socially aware, specified, and direct ways.
Lately, online communities have allowed companies to tap into their customers’ minds, collecting feedback, identifying their expectations, and discovering microtrends. This information helps us determine how financial services marketing will change in the upcoming years. Some major forces driving the most significant changes include technology, regulation, and customer expectations.