A quote recently from a leading retail bank says “more people visit our mobile app in one minute than visit all our branches combined in one week”. This says a lot about society at the moment, with the main message being people like convenience and that digital interactions are becoming the new norm. Consumers are beginning to use their mobile phone, desktop or tablet more and more to access their money, groceries, clothes, and absolutely anything.
This is because it is convenient and provides them with rapid service. Therefore, businesses should take the same route, and this is through the use of digital marketing.
Bank branches are becoming more and more irrelevant and useless. Consumers are beginning to utilise mobile phone banking apps, which have become a norm for every bank to have. Consumers can transfer money from one person to another, consumers can keep watch of their transactions history, they can create different virtual accounts for different purposes without having to use a new bank card, the opportunities are endless. Banks, therefore, are often competing on the service they provide rather than the interest rate. Good service these days can largely be judged by the convenience to customers when accessing their money, organising their money, and saving their money. The best internet banking apps will do this.
ING is an online-bank, that operates with no ATM or retail branches. You may ask how they are able to attract consumers? Well, because they do not have to pay wages or fees for retail branches or ATMs, ING has the money to be able to pay each consumer with a large interest rate that is greater than that offered by the other four major banks (ANZ, NAB, Commonwealth Bank, and Westpac). To incentivise consumers, they offer $100 for when you sign-up with ING, and also offer you $100 when you recommend ING to someone and they subsequently sign up. Consumers pay no monthly fees with ING, as well as no ATM fees when using another bank’s ATM. This is revolutionary in the banking industry, as no one would have though before that a bank could be successful without bank branches. It shows how consumer behaviour is changing and the growing digital world of banking and how this can impact marketing.
Banks can better their business through digital marketing and the use of internet banking by optimising the apps they offer and the features of the apps. Apps should:
- Provide new updated features every couple of months to show consumers they are evolving and keeping up with digital trends (also keeping ahead of rival banks)
- Provide information pop-ups to show consumers how to utilise features of the app. This ensures consumers are confident in using all sections of the app, which will further help keep track of their money, transactions and savings to better their experience with the bank
With financial institutions, many digital marketing opportunities exist. Digital marketing is most effective in the younger generation, say 15 – 30 year olds. The former (15-18 year olds) will just be starting out in creating bank accounts and joining a bank. Thus, banks should make use of digital marketing tools to persuade these younger consumers to join their bank. Bank’s should make use of social media to educate these consumers on how their bank will provide them with better opportunities to save and invest their money. They should advertise the use of their app and show these younger consumers how easy it is to use and how this can assist them in their saving and spending. This way, banks can reach a vast number of consumers in a very cheap and effective way to better their business.