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Empowering Financial well-being: digital strategies for account holder engagement

by Jessica Weisman-Pitts
iStock 1401173709

Empowering Financial well-being: digital strategies for account holder engagement

By Preetha Pulusani 

The purpose and mission of financial institutions (FIs) are multifaceted, but they generally revolve around providing essential financial services to individuals, businesses, and the broader economy. Prioritizing the well-being and unique needs of account holders is a natural top priority for banks and credit unions. In today’s digital age, this can be a significant challenge for financial institutions (FIs) that lack the means of accomplishing this critical objective. It all starts with using data and AI insights to understand the challenges and opportunities account holders are faced with and using them effectively in digital engagement to better connect with their account holders and address their needs. 

At their core, account holders want to improve their own financial well-being and expect their financial institution to demonstrate that they are in tune with their current needs. Banks and credit unions that want to maintain strong relationships with their consumers and gain new ones must look for technology solutions that work at scale to get the right information to the right people at the right time. Although a bit cliché, this kind of “right” communication can make all the difference in strengthening relationships and being an overriding strategy for growth.

Without a doubt, digital is a growth initiative

Traditional marketing methods like commercials and billboards are effective at reaching larger audiences and for promoting the FI brand. However, they are expensive and not effective in reaching individual account holders with relevant communications. Additionally, getting precise measurements about outcomes is not practical. 

Today’s world is moving at a lightning-fast pace and consumers are driven by instant gratification making digital approaches ideal for capturing the attention of account holders and engaging them. The strength of digital lies in its use of data and AI insights to power engagement while relying on precise metrics to determine success and drive insightful optimization plans. 

Relying on physical branch foot traffic alone to reach account holders is no longer a sustainable approach. Successful banks and credit unions are turning to digital strategies to better reach their current account holders and foster new relationships with potential customers. By integrating data and AI-driven approaches, communication is tailored and relevant for the recipient and personalized, so they receive the message recognizing that it is meant for them alone. This both enriches user experiences with the Fi and cultivates lasting relationships that go beyond mere transactional interactions.

By relying on traditional, “analog” marketing methods alone which are considered archaic by today’s consumer expectations, banks and credit unions miss significant opportunities for increasing their brand value and scope. On the other hand, financial institution leadership that has recognized and identified the imperative of data-driven engagement as pivotal are making investments in this area to stay competitive and relevant for the long term.

Lost opportunities: the perils of ignoring data and AI 

Now, more than ever, account holders are always connected, and expect relevant and personalized touch points with their service providers, no matter what realm they may exist in. Financial Services is not exempt. Most bankers believe that effectively leveraging data and AI will be the difference between banks that thrive and those that struggle. Yet not all of them have invested or implemented digital strategies to meet their engagement objectives.

Services like Netflix and Amazon are just a couple of obvious service providers who are creating highly personalized experiences for viewers and shoppers. This shift in consumer expectations should not come as a surprise, as consumers are interacting everyday with providers outside of the financial services industry and have normalized reliance on this type of personalized communication.

Gaining a clearer view and understanding of individual account holder needs is essential in the digital landscape. Leveraging data and AI with the right engagement technology platform enables FIs to scale tailored, personalized experiences through different channels such as online and mobile banking, email, text, and virtually any other digital channel. Failing to personalize service and product offerings implies a one-size fits all message. An example of this might be if an institution promotes a home equity line of credit to an account holder that rents an apartment. This reflects poorly on the FI and gives a negative impression that they neither care for nor understand their member/customer needs. 

Metrics in motion: driving success through measurement

Conceptualizing and executing digital campaigns without measuring their performance is not adequate for deriving successful outcomes. Banks and credit unions relying on digital platforms without in-depth performance metrics will find that these platforms are limited in yielding meaningful results.

Measuring key KPIs will enable banks and credit unions to optimize their engagement strategies. Tracking and analyzing all impressions and clicks are one level of metrics. It is important to go beyond these to look at account holder actions in opening new accounts, as influenced by digital campaigns. Taking this deeper analytical approach is essential for gaining hidden insights into customer behavior, refining messaging for improved efficacy, and enhancing marketing outcomes. 

Prioritizing the analysis of marketing campaign performance starts with ensuring that comprehensive metrics are handy and easily available in the form of charts, graphs, and reports. Not having these hampers an institution’s ability to optimize communication strategies, improve return on investment, and wastes valuable growth opportunities. 

Leveraging precise metrics enables FIs to assess and maximize the impacts of their marketing efforts. Additionally, key performance indicators (KPIs) like impressions, click-through rates, and conversion rates serve as vital benchmarks that are readily accessible for informed decision-making. 

Beyond transactions: how digital fuels lasting bonds and drives growth

In the dynamic landscape of financial services, digital marketing transcends mere product promotion. It becomes the conduit for forging authentic connections with account holders—connections that extend beyond transactions. 

By embracing a comprehensive digital engagement strategy, institutions not only enhance retention rates but also lay the groundwork for sustainable growth. Personalized content, tailored offerings, and strategic engagement become the keystones of success, transforming account holders into loyal advocates. As the digital space continues to evolve, financial institutions that prioritize these meaningful interactions will thrive, leaving a lasting imprint on their account holders’ financial well-being.

About Author:
Preetha Pulusani is the CEO of DeepTarget, a FinTech company powering the digital communication revolution for credit unions and banks with Growth as a Service™ (GRaaS™) helping financial institutions grow by delivering amazing experiences that result in up to 10x more sales and lasting relationships with their digital users.  For more information, visit www.deeptarget.com. 

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