Mastering the digital marketplace isn’t only essential for retailers. Financial institutions must take advantage of new revenue sources and touchpoints that mobile advertising creates. With a growing number of account holders conducting financial transactions through web interfaces, personal computers and mobile devices, the number of human interactions may decline over the next decade.
In fact, a report by thefinancialbrand.com highlighted a trend in which fewer account holders will actually visit brick-and-mortar locations for their banking needs. Visits to retail financial institutions are projected to drop by 36% by 2022. This is largely due to the proliferation of banking apps that allow account holders to conduct simple transactions online. Because of this, many account holders (particularly millennials and Generation Z) are expected to visit a physical branch location only four to six times per year.
Additionally, digital transactions are projected to increase by 63% by 2022. This projection is based on mobile banking’s new status as the primary method of transaction with financial institutions. While this may signal a change in the appeal and effectiveness of credit unions and community banks, their retail locations can still be relevant.
A Deloitte study found that account holders still value physical locations of financial institutions even though they continually use digital channels. In essence, they appreciate venues where they can interact with people to open accounts, apply for loans and gain advice about investment products. It’s no surprise that larger financial institutions, such as Capital One, have opened “banking cafes” where account holders can mingle with advisors to gain valuable information and insight they can’t get online.
Additionally, these branches offer relaxed, open environments that encourage human interaction and the free exchange of ideas. Account holders prefer such settings over stuffy meetings at desks that suggest the banker knows much more about financial products than they do. This is arguably why local branches remain the dominant channel for account initiations and customer satisfaction.
Consequently, financial institutions should strive to deliver a seamless experience between the digital channels that initiate critical touchpoints and the local branches that cultivate lifelong relationships. This is where mobile marketing strategies such as geofencing and data management become critical tools in today’s marketplace. If a financial institution can’t reach account holders on mobile devices, it’s more likely to fail at getting them to a local branch.
Larky is a thought leader when it comes to using technology to help financial institutions maximize the opportunities of the digital marketplace by connecting their audiences with timely and relevant information. Larky’s experience has been forged through thousands of conversations with stakeholders, app developers and consumers over the past six years about the best ways to communicate with account holders of diverse backgrounds and banking needs. In today’s banking marketplace, personalization is equally as important as having the best products and rates. After all, millennials and Gen Zers have different goals and expectations than Baby Boomers and Gen Xers.
Larky is well equipped to help increase the number of products purchased per account holder and increase overall engagement with new and potential account holders. The company is known for its nudge code library, which enables financial institutions to connect with the right audience at the right time. As alluded to earlier, the financial market is poised for significant change over the next five years. A partnership with Larky can establish a foothold with the next generation of engagement tools and advertising software for the financial industry.
If you have questions about how to succeed in this evolution, contact Larky.