Data Snacks, Member Exclusive

Data snack: FIs are adopting martech – but are they making the most of it?

  • Financial institutions are paying attention to the benefits of marketing technology.
  • But using martech to better boost strategy and data analysis remains tricky.

Email a Friend

Data snack: FIs are adopting martech – but are they making the most of it?

In a recent report diving into financial institutions’ use of marketing technology, Forrester Consulting, commissioned by Capgemini, created a model to compare marketing technology investments in big and small financial institutions as well as in high-tech companies.

The consulting firms took into account 24 dimensions across five categories, including strategy, process, technology, data, and organization (see figure three of the report for more details)  and measured companies’ levels of capabilities on a five-point scale. 

They divided the firms into three different levels of marketing technology maturity, with the top level of maturity being the top 25%, the lowest level of maturity being the bottom 25%, and the medium level of maturity being the other 50%. 

Maybe unsurprisingly, high-tech companies ranked highest in marketing technology maturity, with 30% of these companies falling into the top maturity level, compared to only 15% of big financial institutions (i.e. FIs with over 5,000 employees).

Some food for thought: Small FIs (i.e. those with fewer than 5,000 employees) ranked much higher than their larger FI peers. 28% of small FIs were in the top maturity category  – only 2% less than high-tech companies in the same level of maturity.

Financial firms are struggling in making the most of their marketing technology in specific areas, according to the report. That includes strategy, technology, and data.   

For example, in terms of strategy, financial firms aren’t keeping a consumer centric approach compared to high-tech companies. Martech could be used as a way to activate the customer journey through AI and automation – but in a lot of FIs’ cases, this isn’t happening. 59% of FIs say their martech roadmap aligns with their strategy only somewhat or less.

And when it comes to data, FIs are still struggling to use martech to better understand who their customers are. Another data-specific issue includes being able to track customer engagement. While this sort of tracking is a challenge for all industries, FIs especially struggle in terms of cross-channel customer engagement. Half the respondents said they can only measure customer engagement in siloed channels.

All this to say, FIs don’t seem opposed to adopting martech into their toolboxes. But they still seem to be struggling in incorporating this technology into their digital transformation plans.

0 comments on “Data snack: FIs are adopting martech – but are they making the most of it?”

10-Q, Member Exclusive

How Affirm Card plans to kill credit cards

  • How would you dub a card that has the practicality of a debit card with the added functionality of a credit card? That's the Affirm Card.
  • Launched in early 2021, the Affirm Card has been in the spotlight lately. But what led to garnering significant attention now?
Sara Khairi | December 04, 2023
10-Q, Member Exclusive

Robinhood unveils a 5% APY for Gold members, but how will users respond?

  • Robinhood's recent move to challenge traditional banks includes its increased savings offering, a 5.0% APY for Robinhood Gold Members. 
  • The stock trading platform appears to be in a precarious balancing act, grappling with the escalation of deposit strategies while facing a decline in both transactions and monthly active users.
Sara Khairi | November 20, 2023
10-Q, Member Exclusive

Q1’24 affirms Affirm’s upswing in BNPL

  • Affirm's quarterly results indicate that back-to-back enterprise collaborations in conjunction with collective strategies are eventually winning out keeping the firm on course.
  • Going forward the BNPL provider intends to focus on continuing to invest in risk management, technology, and product development.
Sara Khairi | November 13, 2023
10-Q, Member Exclusive

Q3: The PayPal story isn’t over

  • PayPal saw improved earnings in the third quarter compared to the previous one.
  • Chriss answered some of the burning questions and gave a bit more color on what firm assets could require more work to turn around than he thought.
Sara Khairi | November 06, 2023
10-Q, Member Exclusive

Ted Pick is Morgan Stanley’s new leader. Where does it go from here? 

  • The question, 'Who will succeed James Gorman at Morgan Stanley?', that echoed in Wall Street's nooks and crannies has finally been answered.
  • The present and incoming CEOs might have different management styles. What they both share, however, is a shrinking economy and growing macroeconomic pressures at the time of assuming control.
Sara Khairi | October 30, 2023
More Articles