Finance Top Stories

Cost-of-living crisis: Time for financial sector to become solution provider

Banks and fintech companies interacting with more consumers can benefit individuals.

Consumer confidence is at an all-time low due to a fragile economy. Around 67% of UK customers cite price rise as their main worry, while 70% report adjusting their shopping habits to tackle inflation.

In addition to dealing with lower sales, brands may also have to deal with supply chain challenges. But when some businesses falter, others have a chance to succeed.

Customers are looking for businesses that can provide them with real solutions to deal with the cost-of-living crisis. It allows banks and fintech companies to interact with more consumers and find goods and services that can benefit these individuals.

What initiatives can these firms take to demonstrate their worth to customers during this crisis?

The Priority Of The Client
A marketing strategy should integrate data with the human touch to guarantee a consumer-friendly campaign. The finance sector analyses vast amounts of data using programmatic ad tech solutions, but this approach needs to be revised because robots need more human understanding.

Financial brands that exhibit empathy and understanding will be able to stand out from the competition. It involves comprehending and anticipating those demands and then presenting a solution that addresses whatever issue may develop.

Any aspirations of winning over customers will be dashed if the client is not prioritized.

Ensuring Security & Privacy
Financial brands must demonstrate that they are a customer’s trusted digital partner by being open and honest about how they use that customer’s data.

Offering cutting-edge solutions like biometric tracking and verification checks is a must because the finance sector is the third most targeted by hackers.

Boost Consumer Confidence
By continuing to invest in advertising to promote relevant, efficient products and services that are suitable for the current environment and can be perceived by consumers as valuable additions to their daily lives, brands can build themselves on the foundations of consumer centricity, privacy, and security.

Many brands reduce their marketing expenditures during economic downturns. They will suffer a lot from this in the long run. For instance, in 2020, a big beverage firm reduced its budget by £1.6 billion due to COVID, and saw an 11% revenue decline. On the other hand, another company increased its advertising expenditure throughout the same time and achieved a 5% annual rise.

Automation Of The Process
Using data and automated technology in digital marketing is now considered standard practice. Brands should collaborate with experts to automate their crucial marketing differentiators like bidding and measurement.

AI and machine learning may assist the brand in ensuring they are meeting consumer demands in the right place and at the right time.

Automation also enhances operational efficiency by making it more straightforward for employees to accomplish their duties and raising productivity, in addition to assisting in driving business performance.

Gaining The Consumer’s Favour
There are several initiatives that banking and fintech companies may do to demonstrate to customers that they are there to support them through these tough times. Customers are seeking help from brands as they try to cut back on their expenditures. Financial institutions have a clear window of opportunity here and they need to cash in on that.

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