Data Snacks, Member Exclusive

Data Snack: Are banks making the most of marketing?

  • As banks become more of an option among many in consumers’ eyes, banks are paying more attention to how to better market themselves.
  • But gaining insight from the marketing data collected may still be a challenge for a lot of incumbents.

Email a Friend

Data Snack: Are banks making the most of marketing?

Banks are in a period of transition, going from staple institutions to just another bunch of competitors in the space. That means that while in the past marketing may not have been as important for banks’ survival, it’s playing a much bigger role now. 

Banks are definitely taking into account the importance of marketing in their business strategies. Almost every bank surveyed said they hire people for advertising roles, according to a survey by the American Bankers Association. Meanwhile, over 90% of these banks seem to be hiring for other roles, as well – including social media management, marketing strategy, and PR, among others. 

But marketing isn’t just about getting more users – it’s about keeping those users, as well. 

The information gathered from marketing initiatives and content could provide insight into users’ interests, preferences, and perceptions of the company.

And in this area of understanding, banks may still be lagging a bit. For example, only about 55% of the banks surveyed say they hire marketing professionals in the realm of data and analytics. Meanwhile, just over half are investing in talent within the market research and customer experience space.

It seems banks aren’t poo-pooing marketing. But they may not be taking it seriously enough to get the most out of it, either – especially in terms of tailoring the customer experience.

Coupling ABA’s survey with McKinsey’s recent research, you can start to see a pattern in banks’ bumpy relationship with leveraging marketing data. For example, only 28% can smoothly integrate collected data into AI initiatives, according to McKinsey. Meanwhile, less than 10% know how to get valuable insight from the campaigns they launch.

The main takeaway may be that while banks are spending a lot of energy on seeking out ingredients, they’re spending a lot less energy on figuring out what to cook with them.

0 comments on “Data Snack: Are banks making the most of marketing?”

10-Q, Member Exclusive

The debt ceiling deal may have saved the US from defaulting on its debt, but where does this leave the stock market?

  • The passing of the bill may have saved the immediate trouble of defaulting but it could be months before investors and the stock market regain their stability.
  • SoFi stock rose nearly 31% in the past week because of the new debt ceiling deal.
Sara Khairi | June 05, 2023
10-Q, Member Exclusive

Who will succeed James Gorman at Morgan Stanley?

  • Morgan Stanley's James Gorman is calling it a day. “No plans to go out like Logan Roy,” the fictional CEO from HBO’s Succession, he says.
  • Wise shares dropped nearly 7% Thursday after the firm announced this week that its CFO, Matt Briers will be stepping down in March 2024.
Sara Khairi | May 30, 2023
10-Q, Member Exclusive

Guilty or not guilty: Deutsche Bank is ready to pay $75 million in Epstein settlement

  • Deutsche Bank hasn’t come clean about its involvement with the Epstein crime. However, the bank addressed the situation by saying that it has strengthened and invested in its anti-financial crime controls.
  • Upstart is up almost 80% in 2023 so far. The news of multiple funding agreements being worked on by the company rebounded the stock nearly 47% in a week.
Sara Khairi | May 22, 2023
Banking, Lending, Member Exclusive

Unlicensed lending, misleading practices, and legal actions: Is SoLo Funds in trouble?

  • Attorney General for the District of Columbia and the California DFPI have penalized SoLo Funds for breaching a number of consumer protection laws.
  • The DFPI also issued a consent order for the Black-owned firm, which is raising eyebrows and more questions.
Sara Khairi | May 17, 2023
10-Q, Member Exclusive

Robinhood’s losses override revenue, PayPal’s stock dips, while Dave delivers more than expected in Q1

  • Everything investors need to know about Robinhood, PayPal, and Dave’s Q1 2023 earnings.
  • Some important fintech stocks are on the path to recovery, while others crashed on Q1 earnings.
Sara Khairi | May 15, 2023
More Articles