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.
close

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

Behind Citizens Bank’s evolving strategy in a crowded BNPL market

  • Citizens Pay's Christine Roberts shares insights on how Citizens Pay has evolved since its inception and if it has an edge over fintech BNPL lenders.
  • In other news, Arm and Instacart IPOs could be meaningful for Goldman Sachs to open new doors of revenue and IPO fees for the Wall Street firm.
Sara Khairi | September 25, 2023
10-Q, Member Exclusive

Chasing ambitions: SoFi elevates its game by participating in underwriting the Instacart IPO

  • Underwriting part of the Instacart IPO can be a big shot for SoFi, which went public in 2021 and is best known for student loan refinancing.
  • Also, Wall Street banks added modest gains to the IPO Index last week.
Sara Khairi | September 18, 2023
10-Q, Member Exclusive

Dime Community Bancshares steps into healthcare lending as part of its commercial banking expansion

  • Dime makes a move into the healthcare sector to offer financing solutions and support capital-intensive projects.
  • The CFPB is keeping tabs on Apple’s policy of limiting access to the NFC chip technology that makes Apple Pay the only mobile payment service that utilizes the ‘tap and go’ technology embedded in iOS devices limiting other companies from developing their own tap-to-pay apps for Apple devices.
Sara Khairi | September 11, 2023
10-Q, Member Exclusive

Better.com’s shiny IPO debut: Can the mortgage lender pave its way to become a Wall Street darling?

  • Can Better.com gain Wall Street's respect?
  • Federal Reserve Chair Jerome Powell on Friday warned that additional interest rate increases could be yet to come, as inflation is still above where policymakers feel comfortable.
Sara Khairi | August 28, 2023
10-Q, Member Exclusive

‘We still need to earn the trust of millions of Americans who are experiencing digital banking for the first time’: Dave’s Jason Wilk

  • Jason Wilk, CEO and founder of Dave, talks about second quarter results, challenges for neobanks at large, and what's in store for the firm in the months ahead.
  • Marqeta shares popped 8% last week as the firm extended its alliance with its largest customer, Block, through 2027 for transaction services for Cash App and Afterpay.
Sara Khairi | August 21, 2023
More Articles