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.
close

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

Weekly 10-Q: Check cashing fees are getting an overhaul from New York’s financial regulator

  • The New York State Department of Financial Services is putting into practice an updated check cashing regulation following the proposed regulation announced in June last year.
  • And, feeling the heat of the economic downturn, JPMorgan's board has decided that CEO Jamie Dimon will take home the same base pay in 2023 as he did last year -- with no special award or bonus.
Sara Khairi | January 31, 2023
Blockchain and Crypto, Member Exclusive

Bankchain Briefing: Banks onboard the blockchain train

  • The lawsuits and insults season is in full swing within the unregulated cryptocurrency space.
  • But cryptocurrency is just one facet of blockchain technology. Tearsheet asked experts for commentary on how traditional banks are experimenting with blockchains.
Lindi Miti | January 27, 2023
Green Finance, Member Exclusive

Green Finance Briefing: VCs are betting on climate tech amid a broader down market

  • Climate tech is accelerating at unprecedented pace, in contrast to the broader tech sector, with global VC funding reaching $70 billion in 2022.
  • This year, however, the growth rate of the climate tech sector is expected to moderate due to a challenging economic backdrop.
Iulia Ciutina | January 20, 2023
Member Exclusive, Payments

Payments Briefing: On Gen Z’s changing relationship with digital payments

  • This week, we talk about Gen Z’s changing preferences when it comes to sending and receiving money digitally.
  • We also discuss PayPal’s evolving BNPL strategy in a crowded market.
Ismail Umar | January 19, 2023
Lending, Member Exclusive

Lending Briefing: There is a recession coming but don’t worry, it’s not 2008 all over again

  • The oncoming recessions is one of the most anticipated downturns in recent history.
  • But things are not the same as 2008, here's why.
Rabab Ahsan | January 18, 2023
More Articles