Digital marketing in banking is not as far along as it should be. The goal is to try to increase customer engagement and sales with higher levels of personalization driven by data and analytics. Our research provides insight into where the trouble spots are (regulatory compliance, legacy technology and lack of expertise) and what banks and credit unions can do to overcome the challenges and make more progress.
Financial institutions that are digitally mature are better able to leverage data, analytics, digital channels and technology to drive business growth, improve customer experience and satisfaction, and achieve competitive advantage. But many are not as far as long as they need to be to see those kinds of results.
Numerous digital marketing tools and platforms are available to help banks and credit unions automate and streamline their marketing efforts. For example, marketing automation tools can help manage multiple marketing channels, track campaigns, and analyze data to optimize the messaging.
In addition to investing in technology, banking organizations need to focus on fostering a culture of innovation and experimentation. This means encouraging employees to take risks and try new ideas, sharing data and insights that can make decision-making better and customer engagement stronger. Banks and credit unions that embrace a culture of innovation can better adapt to changes in the market and stay ahead of competitors during times of economic uncertainty.
Most importantly, financial institutions need to focus on delivering a seamless and consistent customer experience across both online and offline channels. This means ensuring that all marketing efforts are aligned with the customer journey and that customers receive the same level of service and experience, regardless of the channel they use.
But research conducted by Digital Banking Report and sponsored by Alkami found most banks and credit unions still do not believe they can deliver customer communications that can support high levels of engagement or deliver strong sales results.
A Gap Between the Use and Effectiveness of Digital Channels in Banking
Many financial institutions think they already engage in multichannel communication — or are close. In response to the growing call for comprehensive digital experiences, a healthy percentage of banks and credit unions feel like they’re well on their way to integrated use of online and offline channels to build customer engagement.
Financial institutions of all sizes have been increasingly using digital channels. However, the extent to which they effectively use these channels varies depending on the institution and its strategies.
Some financial institutions have made significant investments in digital channels and have been able to achieve impressive results. For example, online banks and fintech startups have disrupted traditional banking by providing convenient and user-friendly digital experiences to customers.
Traditional financial institutions generally have been slower to adopt digital channels and may not be using them to their full potential. Some may have limited digital offerings or may not have optimized their websites or mobile apps for selling services.
The impact of not successfully leveraging all channels is that sales effectiveness is not optimized. In fact, when banking executives were asked about their digital selling maturity, only 36% rated their institutions as either “proficient” or “very proficient.” By comparison, nearly a third — 30% — said their institutions have low or no proficiency in digital selling.
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