New technologies and the rise of the digital age have transformed entire industries and infiltrated our day to day lives in profound ways. While the aim of technological advancement is, in general, to improve and enrich our lives, a byproduct or “side effect” of the digital revolution is the dehumanization of the relationships between consumers and their banking partners. This disconnect of personal interaction is contributing to a sense of
consumer distrust for the financial services industry,
According to the 2018 Edelman Trust Barometer, financial services is the least trusted industry among global consumers, as it has been for many years. This is a key reason why
banks continue to lose customers, especially millennials.
According to a Gallup poll, millennials are 2.5 times more likely than Baby Boomers and 1.5 times more likely than Gen Xers to switch banks.
Millennials appear to be driving this change in attitude as they value technology more than brand loyalty.
A study from George Washington University showed that only a quarter of millennials have basic financial understanding, and only eight percent have what researchers considered a high financial understanding.
Traditional banks are increasingly viewed as cold and impersonal
The use of Mobile Banking continues to proliferate together with alternative FinTech products, like Zelle, Venmo, and several different digital wallets. As a result, people don’t go into banks to open accounts, or deposit their paychecks as much as they did 10 – 15 years ago.
So many common banking transactions are now being done remotely on our smartphones. This makes it even more difficult for financial brands to provide personalized service and express how much they value individual customer relationships.
Improving consumer relatability could help the banking industry
According to a research by BrandCap, a brand strategy consultancy, consumers only find
one in four banking brands relatable. Their study results found that relatability
in the banking industry is built upon these four pillars:
Competence. Is this a brand that allows me to interact with it in a way that suits me best? Is the brand credible?
Empathy. Is this a brand that understands my changing needs?
Character. Is this a brand that reflects me and my values?
Confidence. Is this a brand that I can trust and rely on when it matters?
BrandCap states that how a brand brings these components to life — through content, messaging, tone of voice, visual expression, user interactions (online and off), and through other experiences is vital to building an emotional connection with consumers and to creating relatability. Improved relatability can also be achieved through targeted brand messaging.
Ready to improve relatability and humanize your financial brand?
Consumers today want transparency and authenticity. If you want consumers to trust your financial brand, show them how your products will benefit them or solve a problem for them. Be more relatable and transparent. Help them understand the options that fit them best, based on where they are financially and where they aspire to go. Provide sound
and honest financial advice and show them you care about their financial wellbeing.
We can help. With over 24 years of helping brands grow, ParkerWhite has worked with many financial companies to rebuild their brand strategies, create valuable content, nurture leads and put a personal touch back into your customers’ journey.
We can help you build brand awareness through integrated digital marketing campaigns, leverage the power of social media to build custom audiences and capture valuable data about their behaviors and preferences. Then we can use data to build lead-generation programs designed to help your move prospect through the customer journey and sales funnel.
Learn how ParkerWhite helped a financial brand take a product that was widely distrusted and create a fresh brand strategy and integrated digital marketing campaign to change public perception.
Let’s discuss your specific challenges for improving your brand reputation, maintaining or increasing your customer base. We’re always ready to talk.