The financial services industry was hit hard by COVID-19. An industry-wide survey conducted by McKinsey in June of 2020 found that businesses across the world were experiencing declines in revenue, savings, and spending. PWC estimates that during the pandemic, 49% of people are staying at home, while 57% are solitary.
It’s not uncommon for people who prefer to conduct business over the phone to face long wait times when doing so. To allow employees the option of working remotely while adhering to strict regulations regarding the protection of personally identifiable information, organizations had to move at lightning speed (PII).
- Financial services marketing during COVID-19
- Digital experience that has been optimized
- Communication
- Developing a strong belief system
Financial services marketing during COVID-19
These challenging times necessitate that financial service marketers do what they can to serve customers. A well-optimized digital experience, informative content marketing and the building of trust are some of the ways they hope to connect with their customers and build their brand.
Digital experience that has been optimized
According to a Chase survey, 54% of consumers plan to use digital banking more often in 2020 than they did in 2019. Chase’s mobile app was deemed indispensable by 50% of respondents. Digital money management was preferred by 80% of the survey participants.
Digital banking was preferred by customers prior to the pandemic. It became even more important as physical locations were either closed or avoided due to the epidemic. Long hold times may have influenced a customer’s preference for online banking over phone banking.
In order to reach their customers, financial services companies should place a high emphasis on mobile marketing and digital optimization.
Communication
Surveys by GOBankingRates show that 62% of Americans lack basic knowledge of banking. It’s not always easy to explain to a customer the various financial service options available to them.
Clear communication is essential when it comes to informing customers about financial services such as mortgages, banking, insurance, and more. More than ever, the importance of communicating with consumers and providing them with useful information has been highlighted during COVID-19.
Developing a strong belief system
Consumers’ personal information is not just handled by financial services companies; it is also collected by them. During the pandemic, 40% of those who took the DepositAccounts survey said they had a lot of trust in their bank, while 38% said they had a moderate amount of trust.
A total of 78 percent of those polled said they had at least some faith in their bank. Financial institutions have been working hard to regain their customers’ confidence for years following the financial crisis of the late 2000s.
In Conclusion
Financial service providers that have a positive reputation are more likely to gain the trust of their customers. 70% of consumers say they would not trust a brand if they thought it put profits ahead of people, and 78% expect brands to protect their employees and communities, according the Edelman Trust Barometer
When it comes to building consumer confidence in a brand, nothing builds it faster than positive online reviews. Customers should be put first and their needs should be taken care of in order for them to keep coming back for more.