Sep
17
Financial institutions have been forced to make considerable changes to their marketing strategies in recent years, due to the economy, new regulations and technological innovations. As a result, the same tactics most individuals grew accustomed to in earlier years are starting to be phased out as banks look to new ways to appeal to their current consumer demographic and attract new types of customers.
One of the most prevalent and notable trends that has emerged in recent years is a stronger reliance on social media services and mobile banking, as opposed to in-branch services. In fact, many larger institutions, such as Bank of America, have announced that they will be closing many ATM kiosks or branches across the country as online and mobile banking options have made it more costly to keep these locations up and running.
Instead, consumers are being encouraged to take advantage of new innovative online and mobile channels, which allow customers to engage in online chats with banking representatives, transfer funds, download alerts, access saving tools and remotely deposit checks, according to the Financial Brand. Further, banks with a strong online customer base may have a more affordable cost-basis than those whose business is primarily done in-person. As a result, more institutions are offering to exempt customers from fees and other costs if they enroll in online banking or agree to sign up for e-statements. While most experts dismiss the claim that banking branches will one day become obsolete, recent years have shown a dramatic decline in the number of physical branch locations.
Banks are not only changing their marketing strategies, but also the demographics they try to attract. Historically, most institutions targeted younger demographics of Generation Y because this age group presented banks with opportunities to acquire new customers. Members of Generation Y are typically undergoing significant life changes, such as purchasing a home, shopping for new credit products, raising a family and making large-scale investments.
As a result, most banks shaped their marketing initiatives to appeal to this group of consumers. However, analysts are now noticing a shift toward the underbanked Americans who lack traditional credit and banking products, the news source reports. In recent months, some banks have rolled out new prepaid debit cards and other products that are typically associated with underbanked Americans as a way to entice potential customers to view other products.