Financial Service Marketing Has Changed; So Should Your Creative Partners

Financial service marketing is in the midst of a huge evolution. From shifting demographics to the erosion of brand trust, not to mention the proliferation of new fintech and digital applications emerging, financial service marketers need to rethink their marketing playbook to keep up with the demands of consumers. Not to mention that marketers are being asked to do more with less money and in tighter time frames. In times of change, the partners you choose for advertising and marketing support matter more than ever.

In the past, most large financial brands had a single agency of record (AOR) advertising partner to reach consumers. Million-dollar accounts with teams of dozens to help support all aspects of advertising and creativity — from account management, to media buying, to creative, social, design, experiential and everything in between. The one-stop shop approach does serve a purpose, but today's financial services brands, many digital and based on new technologies, require a new type of partner that can be as agile and nimble as the quickly changing trends. AORs have the reputation of working at a glacial pace, bogged down by meetings, slow approvals, changing account teams and locked in annual contracts that can run upwards of seven figures.

As the demographics of financial service users shift to Gen Z and access is more online, the methods for communicating and marketing to this younger audience also need to shift. Younger consumers don’t have the same level of trust in financial institutions as older users and have very different thoughts on how they save, invest and even make payments. So why stick with the same advertising model if the way you need to communicate and reach consumers has shifted?

Modern financial brands are looking for an alternative to the large AOR model. And there are a few ways brands can approach the ‘anti’ AOR. Some shops offer a project-focused approach where they build a team around your specific marketing needs — whether it is a specific, specialized service or more of a network model where the best talent is brought in to help on bespoke tasks, rather than a kitchen sink model. Others specialized in one single task such as logo and design, sonic branding, experiential or others.

These smaller agencies and network models have the advantage of much lower overhead, minimal layers and access to exceptional talent, which translates to cost savings and sharper output. They can also move fast, which is a necessity when you are trying to keep up with rapidly evolving consumer preferences. Think days and weeks instead of months and even years to the answers. And when time equals money, this can result in huge cost savings, not to mention manpower.

The shifts in financial services mean that consumers need to be able to trust and depend on their bank and payment partners more than ever, especially during times of instability. The way that financial service brands communicate and market to their customers and potential customers matters more than ever. Not every brand needs a large agency of record model. Those that choose to shake up their advertising partner approach will likely be spending less money, getting more value and in a much faster timeframe.

Author:

Brett Banker, Co-founder, X&O