How to Win Big in the Compare Financial Products Industry

 

The Complete Beginner's Guide To The Financial Services Industry

You should be aware of your options when it comes to something as important as your finances, as well as where and who is managing your money. This overview of the financial services sector serves as a primer on the many different professions and businesses that offer advice on personal finances, including those that enable you to invest in and protect your assets while also observing their development.

Introduction

Financial service providers( FSPs) face significant obstacles due to the numerous challenges in the marketing of financial services. They must overcome customer and market-related obstacles in addition to operating in a highly regulated industry, which can make it challenging to stand out and succeed. These difficulties make it challenging to decide which tactics and strategies to employ in order to prevail over rivals. While some professionals find these difficulties to be slowing, others see them as opportunities, with winners using them to their advantage in the market for financial services marketing. They effectively reshape the financial services competitive landscape and secure a place in opportune by mastering and overcoming these difficulties. The top problems with financial services marketing are examined in this article, along with suggestions and solutions.

Compliance/Regulatory Marketing Challenges

The financial services industry is one of the most tightly regulated industries in the world. Breaking even one of the dozens of federal, state, and sometimes local rules can result in lawsuits, hefty fines, and reputational damage. However, this strategy results in flat marketing content that fails to move the needle.

 Grow beyond your core into relevant ecosystems

As a means of expansion, banks have long relied on educating customers about pertinent products. That strategy used to involve introducing additional banking products. A customer with a checking account, for instance, might be urged to think about getting credit from their bank( see inner circle of exhibit, labeled Core), personal line of credit, or home improvement loan.

Brand Consistency

It takes a lot of work to maintain fluency in various areas of the marketing campaign. Financial institutions must still overcome this obstacle in order to succeed in their market, even though it does not only affect the financial services sector. Simos is one of the problems that make maintaining a strong financial brand difficult. Most departments do not( or cannot) share data because the financial sector is so rigid( partially because of regulations).

Banks that know where to look can find new sources of untapped value

 Investors believe fintech start- ups will become a significant force in the future, valuing those in the US at$ 120 billion, or 7 percent of the total equity of US banks. As we see it, many banks haven't set their sights nearly high enough in response to disruptive attackers.Even banks that would like to be more aggressive find it difficult to know exactly what to do.

Commoditization

How do you avoid a race- to- the- bottom scenario where the only point of differentiation is in ever- lower pricing?

By moving into ecosystems beyond the traditional core, banks are able to tap their existing client base and operational capabilities, strengthen engagement, and capture data that will provide a more complete view of customers 'needs. Ideabank and ING, for example, have extended into banking adjacencies( see middle ring in exhibit) by providing services like accounts- receivable management, factoring, accounting, and cash- flow analysis to small and medium enterprise( SME) customers. The fintech start- up Moven built a pioneering mobile money- management app and is now partnering with financial institutions to provide this service to retail customers.