The financial services industry is in the middle of a massive change. To thrive in this environment, financial institutions must adapt to new technologies, evolving consumer behaviors, and a complex regulatory landscape, all while prioritizing the creation of trust and authenticity.
Let’s dig into key sales & marketing trends for financial services and strategies for success.
The Digital Imperative: AI, Personalization, and the Customer Journey
Artificial intelligence (AI) and machine learning are no longer optional. They are foundational to success. To provide a seamless customer experience, institutions need to move from a generic approach to a hyper-personalized one.
By leveraging AI, you can offer tailored advice and personalized product recommendations to customers. It requires breaking down internal data silos to create a unified view of each customer. 71% of surveyed customers anticipate personalized interactions with brands, and a significant 76% express frustration with generic messaging.
54% of U.S. consumers desire personalized experiences from their financial services providers, with nearly half (48%) indicating a willingness to share their data to receive such personalization. Omnichannel personalization is fundamentally reliant on a unified data set and robust personalization APIs to ensure a seamless customer journey across all channels. Keep in mind that customers are often willing to share their data, but only if they trust that you'll use it responsibly.
The Human Element: New Channels, New Connections
The traditional bank branch is no longer the only way to connect with customers. Younger generations, including Gen Z and Millennials, are often skeptical of traditional financial institutions. They prefer mobile-first experiences and often get their financial advice from social media influencers. A 2023 study by the Financial Brand revealed that 64% of Gen Z prefer obtaining financial advice from YouTubers or social media influencers rather than traditional financial advisors or banks.
To reach these audiences, financial institutions should leverage platforms like TikTok and YouTube to create authentic, educational content that addresses their financial concerns. The goal isn't just to promote products, but to build a community and provide genuine value.
You’ll be able to adapt to generational shifts by using new channels and new connections. Gen Z is rapidly becoming a dominant economic force. Their global income is projected to reach $36 trillion in approximately the next five years, surging to $74 trillion by around 2040, which means their consumption decisions and patterns will have a strong influence on the global economy.
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The Hybrid Future: Transforming Sales and Advice
The traditional sales model is evolving into a new hybrid approach where technology and human advisors work together. Advisors are no longer just salespeople. They're becoming strategic and consultative partners who help customers navigate their financial lives. Digital tools, such as Digital Sales Rooms (DSRs), are essential for streamlining tasks, allowing advisors to focus on building deeper relationships and providing valuable advice.
A digital-first strategy is critical in wealth management. The rapid growth of mobile applications has accelerated this trend, as contemporary investors are comfortable managing nearly all aspects of their financial lives directly from their smartphones. Digital solutions are becoming indispensable for nurturing "digital-first" or early-stage investors, who are often the children of existing clients or individuals with smaller accounts that may not meet traditional in-branch advisor minimums.
It’s time to empower financial advisors with advanced digital tools while remaining compliant with regulations. Digital tools are not replacing advisors. They are augmenting their capabilities, enabling them to handle "menial, mundane tasks" more efficiently.
The Foundation of Trust: Data, Privacy, and Security
AI plays a crucial role in automating workflows and processes, significantly reducing manual errors in tasks such as data processing, analytics, document processing, customer onboarding, general customer interactions, and huge amounts of data. With greater operational efficiency and increased speed across various functions comes new risks and compliance.
Trust is a major competitive advantage in the financial services industry. Tighter data privacy regulations and the phase-out of third-party cookies mean financial institutions must take a new approach to data. To build trust, you must be transparent about how you collect and use customer data. Furthermore, implementing robust security measures and positioning data privacy as a core brand value is crucial.
The time employees spend on federal mandate compliance increased by 61% from 2016 to 2023. To address these challenges, effective compliance strategies include continuously monitoring regulatory changes, conducting frequent audits of marketing materials, educating staff on compliance protocols, and leveraging automation tools for compliance checks. The rise of AI-driven fraud, which now accounts for 42.5% of all detected fraud attempts in the financial sector, further underscores the urgent need for robust digital trust measures. Transparency regarding security measures and data collection protocols is therefore paramount.
Actionable Recommendations
Financial institutions should consider the following strategic actions:
Optimize for Omnichannel and Mobile-First Experiences: Design customer journeys that are seamless and consistent across all touchpoints, placing a strong emphasis on mobile application functionality and personalized interactions within digital channels. Ensure call centers are fully integrated with digital customer data to facilitate context-rich conversations.
Embrace New Marketing Channels and Content Strategies: Develop authentic, relatable content, particularly video, tailored for social media platforms preferred by younger generations. Explore strategic partnerships with "finfluencers" to build credibility and deliver essential financial literacy in an accessible manner.
Empower and Retrain Sales Teams for Hybrid Models: Provide financial advisors with advanced digital tools, such as DSRs and CRM integrations, and comprehensive training in digital selling techniques, consultative approaches, and leveraging data insights. Redefine success metrics to include measures of relationship depth and digital engagement, not just transactional volume.
Proactively Address Data Privacy and Build Digital Trust: Go beyond minimum compliance requirements by being transparent about data collection and usage practices, offering clear opt-in/opt-out options, and investing in robust cybersecurity measures. Position data privacy and security as a core brand value to differentiate and foster long-term customer loyalty.
Conclusion
The future of financial services belongs to institutions that can seamlessly blend human expertise with cutting-edge technology. By embracing AI for personalization, connecting with new audiences on their preferred platforms, and using a hybrid model that empowers advisors, financial institutions can build lasting relationships in a transparent way.
Ready to start transforming your strategy?
