The digital age, as it has with so many facets of daily life, has permanently altered how regular consumers use and view financial institutions. Consider that today’s consumer only walks into a physical branch an average of three times per year; in 1995, they visited a branch more than 24 times a year. Today it’s easier than ever before to transfer money, apply for loans, make deposits and payments, and get information—without ever setting foot inside a bank or credit union.
While consumer banking habits have changed, many banks have not changed their marketing and advertising tactics to keep up. And this is a problem. Non-traditional services like PayPal, Square, and Mint have ridden the digital wave and are crowding the financial services playing field. If traditional financial institutions want to compete, they need to embrace digital marketing.
Traditional Advertising vs. Digital Marketing
While we’re not suggesting you scrap your traditional advertising channels altogether, it’s important to know why they are limiting. The problem with traditional advertising is that it’s one-dimensional—it sends a single message and hopes that it is being received. Digital marketing, on the other hand, allows for continued personalized interaction with your brand, offers opportunities for consumers to take immediate action, and lets you track results.
Financial education is a great example. When banks and credit unions offer online opportunities for learning, their consumers and prospects have a chance to interact with the brand. They are receiving valuable education, but they’re also on the financial institution’s website, interacting with the brand, exploring, and simultaneously building trust in the brand. When they need a financial service, they are more likely to choose the brand that they’ve already come to respect. And—since they’ve provided access to online education modules—financial institutions can track consumer progress and follow up with other relevant offerings.
Learning why digital marketing matters is only the first step. For more information on how your financial institution can get started with digital marketing, download the complete guide here.