13 Feb 3 challenges marketers in the financial services industry face
Today’s global financial services marketing teams face an ever-changing environment, new digital trends and constant market disruption, and thus have to adapt at a quick pace. What works today might not work anymore tomorrow. Marketers in the financial services industry (FSI) have to deal with additional challenges such as new regulations or legal aspects. In this article, we will examine some of the common financial services marketing challenges to help FSI brands clearly identify them, set up the correct strategy and select the appropriate technology solutions to tackle them.
1. Compliance, legal aspects & strict regulations
Together with the Pharma industry, the financial services (bank, insurance) sector is probably one of the most regulated industries. External communication and marketing messages and activities are subject to strict regulations. Marketing and communications teams have to work closely with the legal team, and clear validation processes must be in place. Complying with these regulations is critical and one of the most important factors for FSI brands. They need to have the necessary disclaimers, legal tracking, audit trails, archival process etc. in a context of increasingly strict laws to protect the consumer. Plus, as in any sector, the GDPR obliges FSI brands in the EU to follow personal data protection rules.
2. Lost trust
The financial crisis of 2008 has left a mark. Customer are much more careful when it comes to financial products and more aware of costs. Governments are constantly passing new regulations for financial institutions to achieve more transparency for customers and protect them. As an example, in January 2018, MIFID II law became effective. This is a law within the European Union that aims to create more transparency for bank customers.
3. FinTech start-ups disrupt the market
In hand with new technology goes the rise of finance and insurance start ups. With innovative business ideas, they have disrupted the once so conservative sector of financial services. Traditional banks and insurance companies face higher competition, as FinTechs are particularly attractive to young audiences with high technology affinity. In order to stay relevant, traditional banks and financial institutions have to re-invent themselves. In their overview, Crunchbase lists more than 1000 FinTech organisations within the EU alone. Also, new financial services such as leetchi (online money pot) or Lydia (mobile payment app) disrupt and innovate the market.
This is an extract of our latest ebook “Marketing Resource Management for the Financial Services Industry”. Want to read about the other FSI marketing challenges and how an Enterprise DAM solution within a MRM approach can help meet them? Download our free ebook to learn more.