What Are The Challenges Of A Modern Financial Marketer?
Nicky Senyard, CEO and Founder of Fintel Connect talks about how the financial marketing industry faces challenges in navigating regulatory compliance and public sentiment while striving for effective communication.
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The neobank vs traditional bank discourse is only the tip of the financial iceberg as fierce competition is not the only thing making financial marketers sweat. The industry faces another significant challenge as it finds itself caught between two major obstacles.
Recently, the Federal Trade Commission introduced updated guidelines that impose stricter regulations on creators when collaborating with brands and disclosing their affiliations.
Nicky Senyard, CEO and Founder of Fintel Connect, said, “The regulatory environment that encompasses various federal and state regulations, greatly impacts marketing strategies, product development, and market positioning.” Even while considering a new venture, say super-apps, there are hitches. “When considering super-apps and the handling of privacy, information, and related matters, the conversation becomes intertwined with regulations. There are federal regulations in place, but we also have state regulations governing the usage of information for specific purposes.”
Secondly, the perception of finance is rapidly evolving, and its significance in people’s lives is increasing. “Finance has become a highly sensitive and complex subject, making it crucial for marketers to navigate the delicate balance between meeting regulatory requirements and addressing public sentiment.”
The financial marketing industry finds itself in a distinctive position that sets it apart from other industries. It is characterised by two factors: the intensity of scrutiny it faces and the potential for misunderstandings that can arise within the realm of finance.
Unlike many other sectors, effective marketing in this industry has the power to either perpetuate confusion or provide much-needed clarity. Given the complexity and sensitivity surrounding financial matters, it becomes essential for marketers in this industry to navigate the balance between regulatory compliance and the provision of accurate and transparent information.
“There are few industries that experience such intense scrutiny and potential for misunderstanding, and where effective marketing can either perpetuate confusion or provide much-needed clarity. The financial marketing industry finds itself in a unique position due to these dynamics,” added Senyard. What steps can be taken to move the needle towards success?
The focus should be on defining what constitutes ‘good performance’ and identifying the factors that contribute to its achievement. The ultimate goal is to enhance the overall performance standards by setting clear benchmarks and recognising best practices and the process of how measurement tools work.
According to Senyard, bankers who are well-versed in banking practices may lack the level of exposure and expertise when it comes to digital acquisition and marketing. But to create a significant impact, it is essential for financial institutions to adopt a comprehensive understanding of the events they are monitoring.
“They should recognise the significance of data and metrics in driving the entire acquisition funnel, encompassing traffic generation, conversion events, and the value of customers after conversion. It is imperative for them to understand what they are measuring, the methodology used for measurement, and the underlying strategy.”
Furthermore, financial institutions should ensure they are equipped with the necessary capabilities to efficiently address any objections or challenges that may arise. In the quest to achieve a positive ROI, businesses must prioritise the implementation of technology that facilitates a comprehensive understanding of return on investment.
“To accurately measure ROI, it is crucial to have transparency and tracking mechanisms in place. This involves more than just measuring website traffic; it entails tracking conversion events throughout the customer journey, including their usage of financial products after acquisition.”
Can emerging technology be the needed disruption for the financial marketing function? Senyard illustrates that it’s a little more complicated. He believes that solely emerging technologies cannot bring about disruption. It could involve other factors, such as the regulatory impact.
For instance, certain platforms like TikTok had limitations on advertising financial services due to concerns regarding content oversight and distribution responsibility. This hindered TikTok from becoming a disruptive platform for disseminating financial industry information.
“Previously, digital account opening was considered a disruptive technology. Today, machine learning and artificial intelligence (AI) are making waves in areas like personalised advertising, customer segmentation, and predictive analytics. While there is always room for disruption, as it presents an opportunity to solve problems, it is uncertain what the next disruptive element, technology, or factor will be.”
Embracing disruption with an innovative mindset will ultimately lead to greater efficiency, improved customer engagement, and a thriving financial marketing ecosystem.
It’s high time for financial marketers to set clear benchmarks, embrace data-driven insights, and adopt emerging technologies strategically. As the industry continues to evolve, those who embrace change and harness the power of technology will undoubtedly emerge as leaders in this dynamic and ever-changing landscape.
For more insights on CX in the BFSI sector, join us at CX NXT – BFSI Summit, which will take place in Conrad, Dubai on 27 February 2024. For registration and more information, click here.
