Technology is drastically changing financial services and has been doing so for years. Back in 2015, a Deloitte report assured that the banking experience of the future would be completely virtual, customer-oriented, frictionless, and personalized. Today, it is already like that, or at least it is how customers expect it to be.
Consumers have gradually understood the potential of digital communications and solutions. Currently, 66% of customers execute half of their banking transactions online, a number that is forecast to continue to grow, according to research from Accenture Strategy. Therefore, creating a seamless digital experience in online channels is a top priority for banks. Doing so can be the key to a financial institution's success.
One of the best ways to achieve this is to adopt a content marketing strategy. This type of marketing consists of creating, publishing, and distributing relevant content for an audience with the aim of obtaining leads, positioning itself in the customer's mind, strengthening trust in the institution and building customer loyalty. If a bank wants to convince its customers that it is their best option, it can demonstrate it through a strategy based on valuable content.
In a market such as banking, where there is little differentiation between products, the brand affinity and trust that a bank builds among customers is key to remaining relevant. Content marketing helps to achieve these goals and also allows to reach others that are essential for today's banking.
One of the goals of banks is to reach younger audiences. Millennials are at the center of their strategy, as in 2016 they surpassed baby boomers as the largest generation. However, it is not easy for banks to reach this audience: it is a reticent group towards banks.
Millennials also tend not to trust disruptive advertising very much. According to the report New money: how top finance brands use content marketing to win in a customer-centric world, published by The Content Strategist, millennials skip YouTube ads as quickly as possible and two-thirds use ad blocking programs.
Content is a friendlier option for this audience. 47% of millennials say they would be more likely to trust a financial services company if it created useful content, according to survey data from The Content Strategist. For this reason, companies like BBVA and SoFi have invested in content marketing to help connect with their customers.
Customers trust commercial messages less and less. When they see an ad, they know the brand has paid for it, which is why they don't pay much attention to what it says. Content marketing doesn't pressure visitors to do something, but instead helps build trust by offering non-promotional information that educates them and helps them solve their problems.
A big advantage is that consumers trust content: 40% admit to viewing three to five pieces before communicating with a brand, according to a survey of content preferences by Demand Gen Report. So when banks create relevant content for their audience, they can increase the number of visits to their website and begin to establish their brand as an authority in the industry, as content allows them to position themselves as experts.
Banks use content marketing to add value to their products. Some of the products or services offered by financial institutions may be difficult for the target audience to understand. Well-explained content tailored to the bank's audience can educate them on a topic so that they understand it better.
One of the problems facing banking today is the lack of trust in digital media. This occurs mainly among older consumers, as young people tend to trust more. Creating content that can teach the audience about the use of digital tools for banking, for example, can reduce this distrust gap.
Personalization makes it possible to meet the needs of each customer, depending on the stage of the customer journey in which they are, by connecting them with the information they are looking for and need.
With content marketing, a bank can create attractive and useful content for each of its audience groups. The content that interests a retired person is not the same that appeals to a young person. If a bank uses content as a method of personalization, they can create blog posts focused on retirement to appeal to baby boomers, and others on financial advice for millennials.
Another benefit of having a personalized strategy is cost-effectiveness. Increasing personalization across more channels can increase overall consumer spend by up to 500%, according to the study Engage consumers & increase buyer readiness through customer-centric marketing.
Banks such as BBVA or Bancolombia, or investment banking groups such as Goldman Sachs, use content marketing to reach younger audiences, connect with them, increase brand awareness and build customer loyalty.
However, it is not just about creating lots of content. Having the right processes and tools in place to connect content with audiences is critical to the success of this strategy. The key is data: by analyzing it, you can find out what your target audience is interested in and then generate content aligned with those interests.
If you would like to learn more about how we can help you create a successful content strategy for the financial sector, please contact us: sales@castleberrymedia.co.
