Bank Marketing in the New Normal
The bank marketing is the practice of attracting and acquiring new customers through traditional media and digital media strategies. The use of these media strategies helps determine what kind of customer is attracted to a certain bank. Compared to other services, the banking products are distinguished by the fact that they are complex and abstract. Most of the customers do not easily understand what the financial services consist in, what benefit they bring and how they can be distinguished from one another.
The COVID-19 pandemic has transformed markets around the world. It affects the banking industry in two ways (by accelerating existing trends and creating new ones) and leads to a new normal, one that may not be entirely new but is coming sooner than expected, which means that it poses enormous additional challenges. Banks need to respond immediately in order to future-proof their business and operating model.
Bank Marketing Trend In the New Normal
Marketing as a function has undergone a major transformation. With the mainstreaming of the internet and social media, the ubiquity of technology, and the world becoming a more connected place, marketing is no longer restricted to traditional methods. The marketing landscape is not going back to “normal.” It has been transformed by the COVID-19 pandemic. And more change is yet to come. Bank marketing landscape has also been changed. It has become more Dynamic, Digitized & Driven by Purpose.
The pandemic has disrupted industry and altered business process significantly. Customers communication has been changed from face to face to non-face to face. Digital transformation requiring new or modified processes, software and training. Markets are demanding faster, more creative innovation. Purpose-driven messaging, and action to back it up, are more relevant than ever. COVID-19 has accelerated the shift toward localized marketing execution. Marketing will rely even more heavily on data and analysis. There is rapid increase in live chats, e-mails, text messages and use of social media. Banks and financial institution have become more flexible and adaptive. Employees are trained on innovative automation marketing tools. So, the banks will need to continually re-think how they reach their customers.
COVID-19 has negatively impacted banking sector but has facilitated the development of the fintech sector. Fintech has increased the convenience of the public lifestyle and improved the productivity of businesses. As security is enhanced, the public becomes more dependent on fintech, and the sustainability of the banking sector is severely impacted. What the coronavirus crisis did make clear is that despite all the progress they’ve made in recent years, the majority of banks still have much of the work ahead of them when it comes to digital transformation. Only with considerable effort and major concessions from all sides was it even possible to implement the measures that had to be taken during lockdown.
To prevent Covid-19 from threatening their very existence, banks must gear up now for the new normal and set themselves on the right track to deal with whatever comes after the coronavirus. We are currently seeing an openness and a tolerance of innovation from customers, employees and regulatory authorities alike that presents a unique opportunity to explore new avenues much faster, and indeed to see off the kind of resistance you often come up against when doing so. It’s the perfect time to overhaul outdated business models and tackle long-overdue changes.
Customers’ need have been shifted. There is increased need for digital interaction, need for comprehensive offering beyond banking and demand for holistic advice and a long term partner. Consequently, operating model has also been changed. Banks established new ways of working i.e. larger share of remote work. There is pressure in acceleration of technological change.
Strategies for the Enhancement of Bank Marketing
In the fierce competitive market, needs of customer keep changing. Hence, our marketing strategy must be dynamic and flexible to meet the changing scenario. Here are steps that form successful and effective marketing strategy for bank products.
- Emphasis on Deposits
Nepalese banking has experienced a deposit crisis since the beginning of current fiscal year 2078/79. So, emphasis should be given to mobilize more of deposits as they are main source of profit of the bank. - Digital Delivery Channels
Digital delivery channels are very helpful in enhancing the marketing of various products and services. Thus, banks should sale the products and services through these channels. For this, adoption of complete digitalization is very important for the banking sector. By embracing digitalization, banks can provide enhanced customer services. This is the future of the bank. So, every bank, without any delay must invest on digital and innovative technologies to safeguard competitive capacity of the bank. - Form a Saleable Product Scheme
Bank should form a scheme that meets the needs of customers. A bunch of such schemes can also form a product. A bank product may include deposit scheme, an account offering more flexibilities, technically sound banking, tele/mobile/net banking, an innovative scheme targeted to special group of customers like children, females, old aged persons, businessman etc. In short, a bank product may consist of anything that you offer to customers. - Effective Branding
Man is a bundle of sentiments and emotions. This can effectively be helpful in branding our products. Considering the features of products and target group of customers, the product can be effectively branded so as to sound it catchy and appealing.
The branding should be done in such a way that the brand name must attract the attention of customers. It should be easy to remember. The target group and the silent feature of the product should resemble brand name. This will help a lot in making the brand successful. All employees and all our campaigns should refer the product by its brand name only so that to strike the same in the customer’s mind. - Products for Women & Youth
Banks should introduce new banking products for women and youth like special deposit account for women and youth, credit schemes for women and something to improve their access to banking which they require. - Customer Awareness
There is a need to educate the customers on bank products. Efforts should be made to widen and deepen the process of information flow for the benefit and education of customers. Today, the customers do not have any idea as to how much time is required for any type of banking service. The rural customers are not aware for what purpose the loans are available and how they can be availed. Customers do not know the complete rules, regulations and procedures of the bank and bankers preserve them for themselves and do not take interest in educating the customers. It is a need to educate the customers from the grassroots of banking. - Advertisement
Advertisement is an eminent part of marketing of bank products. Advertisement should be such that appeals to people. It should not follow the orthodox pattern of narrating a product. For effective advertisement, bank should understand people’s tastes and choices. - Selling Products in Rural Areas
For enhancing the marketing of their product, bank should sell their products in rural areas. For it, there is a need to open branches or extension counters in the rural areas. - Informing Customers About Products
The bank should embark upon aggressive marketing of its products, particularly at the time of launching a new product, which will inform the perspective customers regarding product and at the same time relieve staff at branch level from explaining the product to all customers. - Customer Convenience
In a service industry like banking where product differential is hard to maintain and quality of service depends upon the service provider, from whom it cannot be separated. So the bank employees have to render services to the satisfaction of the customer, not as per their own conveniences or whims. - Re-orient Staff
Sincerity of efforts in implementation of the measures is lacking among the bank staff. It is a fact that its employees are not able to rise up to the expectations of its customers. They lack in their behavior, attitude and efficiency. The phenomenon is glaring at urban centers. Therefore, it calls for an immediate attention which is missing link in the entire process of marketing, and the bank should undertake all such steps to motivate and reorient its staff. - Sale of Products and Services through Web-sites
Internet is a network of network which connects the world. Thus, banks should sale their products through web-site. This will enhance the marketing of the products not only at the national but also at the international level. - Marketing through social media
Social media has become a major tool for banks to experience meaningful customer experience. Social media offers an ideal opportunity for them to boost those connections so that customers can interact with their banks much more flexibly, conveniently and frequently. This is the fastest method to outreach of banking products and services to various market segments.
Conclusion:
Bank cannot exist without the customers. Purpose of the bank is to create, win and keep to a customer. Customer is and should be the center of everything the banks can do. Organizational design should be oriented to the customer and the bank should ensure that the services are performed and delivered in the most effective way. Banks have to invest in fintech to improve their performance in the new normal. Ultimate aim of a bank is to deliver total customer satisfaction. There is greater customer demand for digital, cross-channel solutions that enable banks to offer their clients holistic advice to suit individual needs. Banks are required to adjust to the new normal and prepare themselves accordingly. Bank marketing in the new normal should be focused on targeting different demographics by adopting new and better technologies, pushing digital apps and financial services and thus focus on customer outreach.
