Introduction to Marketing Financial Products

jaro education
17, July 2023
5:00 pm

Financial marketing employs diverse techniques and strategies to promote awareness and market financial products in India. Through this process, financial organizations can generate leads and transform them into loyal customers using various advertising campaigns. In the digital era, financial marketing has gained significant momentum. If you have an interest in this field, consider applying for the IIM Tiruchirappalli Post Graduate Certificate Programme in Banking and Finance.

In this 1-year course, you will get an overview of the marketing of financial products and how they are used to attract customers. Register with Jaro Education to know more about this course and its USPs.

Financial marketing methods

Marketing of financial products and services can happen via traditional marketing (that includes signage, TV, print and radio) and digital marketing (including PPC and blogs).

Most financial marketers will use a blend of traditional and digital marketing. But, due to legacy, most of them heavily rely on traditional marketing channels. In the current scenario, this practice has changed as digital marketing campaigns have succeeded in effectively reaching customers. Before implementing any method, it is essential to know what these marketing efforts are achieving. Besides creating awareness, marketing financial services lower churn reduces customer acquisition costs and bolsters revenue.

Why does the financial industry need the marketing of financial products?

Banking & Finance industry is one of the oldest industries in the world. At some point, everyone needs financial services or products.

The financial service industry preserves the notion that financial organisations operate in luxury and retain customers without many operations going behind. However, this does not stand true. There are various reasons behind the need to market financial services or products to the financial industry. Of the total digital advertising expenditure, 14% is spent on financial marketing products/services. However, just $1 of every $92 spent on gaining a lead is spent on turning them into a client. While this appears to be an oversight, the truth is more complicated. For this reason, Banking & Finance sector has developed financial marketing products that would help them traverse a difficult marketing landscape filled with legal and compliance challenges.

Below are some of the barriers that can be nullified by implementing innovative marketing techniques for the visibility of financial products and attaining customer conversion.

1. Regulatory barriers

The regulations are becoming more stringent than ever, making it hard to market aggressively.

2. Digitisation

Digitisation has made it easy for digital-first customers to experience an enhanced and personalised financial service.

3. Lack of trust

In the eyes of customers, the financial industry has suffered a lack of trust. Only strategic marketing of financial products can now win them back.

4. Digital transformation

It was traditional marketing channels that financial marketers relied on previously. But, with advancements like marketing automation, these conventional methods stand ineffective.

5. Commoditisation

Standardisation of financial products has made distinguishing it from its competitors difficult.

6. Disruptive fintech

FinTechs, known as Financial Technologies, are actively challenging the status quo and completely disrupting the established order.

Strategies for financial product marketing

To capture the attention of potential customers and retain a strong position in the market, certain strategies should be inculcated within a setup. Here are some of the prominent strategies that are paramount for the success of a financial product.

Take your financial product marketing activities to mobile

In the current scenario, it is difficult for financial service companies to target their audience without mobile marketing. Customers and potential leads spend most of their time on mobile. So, a financial service company should optimise its website for mobile use as most people do business on the go. To optimise a website, the first thing to do is to add CTA (Call-to-Action) buttons such as ‘Click Here’ and ‘Subscribe’, which users can see and relate to immediately. Financial service providers need to make the registration forms or sign-up forms short for pro