Marketing of Banking Services

This semester we have a subject called "Banking". Yes, just that..

It means, everything in banking: its products, its operations, its marketing and bla bla...

Yet, when we were told to present on the topic mentioned above "marketing of...." I was not sure how it would come out, as this topic in itself was very less talked about.

We knew the services, but as individuals never concentrated on the marketing of those services and wide variety of products offered...

Well, what does marketing consists of, and that too of banking produts/services??

It was a challenge, a good one ofcourse, coz it added to out insights. The following are a few perspectives of ppl in the business: (excluding me, coz im yet to be there...but ofcourse)

Brand Activation Manager at Tapal Tea (Pvt) Ltd: Well from the perspective of Pakistani Banking sector, there has been a significant shift to marketing consumer products almost using all the major advertising mediums. this is just not limited to ATL but BTL and on ground activations are rapidly picking which is leading to experience based consumer marketing. 

whats new? well what i have observed recently is experience for the consumer. an e.g of which i recentky saw in a consumer exhibition here, where the bank was promote its car financing but at the same time to engage the attention of the consumers a car based game on computer was there to create a relevancy of the product, so it was not just about handing brocuhers and giving sales pitch, an experience platform was there that i think really worked for them to engage the consumer and put the message across. 

Here banks are ddefinitely shifting towrd barnd activations, despite the fact the it is still on a smal scale. 

Nationwide CDL A Experiential Mobile Tour Manager/with a United States Passport: As you both have stated banks are going directly to the consumers. I executed a promotion recently for a bank, they gave out coupons for a cup of coffee it was an awesome campaign and it was launched nationwide on one day. It was exciting. I have also seen financial institutions at various venues where I have been executing promotions for other companies. There is also a shift to bring these types of activities (branding, promotions) in house. Union Bank has such a position open now. 

I recently received a bulk mailing from a financial institution offering $100.00 for a new account. 

If anything I think in a few months everyone is going to realize they have to focus on their marketing budget and increase it to get consumers/customers they need to stay afloat. 

No visibility = no new consumers/customers. 

Long live experiential marketing! 

Deputy Manager - Marketing Services at Tata Housing Development Co. Ltd.

In lest few years there is a surprising change the way bank used to potray themselves. Now they have become more aggressive and offering various services like need specific accounts, credit cards, phone banking, net banking, insurance, loans, invenstment products and what not. 

If we look at traditional media options to sell these products, i think that will always remain on top of the list but then what else... well looking at options of tie-ups with schools / colleges for educational loans, real estate agents for home loans, restaurents / malls / multiplexes for credit cards, NGOs for FDs and investment products. What i feel these are people are the influencers and play an important role in future planning in respective areas. 

Today if an student wish to go for higher studies to whom will he approach first for guidance - his teacher / principal and if they update him on educational loan facility from banks i feel it would be surely be a good approach. Similarly for other banking products. 

I have noticed banks offering credit cards to post paid mobile customers (a way to help them in paying their bills hassle free using their IVR services and credit card), to travellers in Delhi Metro (to induce their purchasing power), Investment products to savings bank account holders (to shift their money from savings to investments for better interest rates), FDs to senior citizens etc.

Creative Director at The ADAM Group: One sure fire way that I'm particularly familiar with is direct mail. It may seem like an average thing to do but demographic modeling has really taken financial service direct marketing to another level from, say, a decade ago. With the right product/demographic alignment, it's very effective.

Senior Marketing Consultant at Marketing Lexicons: It varies from the retail to commercial sides of the bank. Today it's all abpout deposits and focusing on products that drive deposits. Online is the way to go. direct, blog, email, podcast, video get the folks with the actual deposits the banks want. 

In the commercial space integrated product marketing -presenting a set of solutions and positioning a bundle - vs a la cart sales isn't necessarily new, but it is effective. I'm building out a tactical plan for one of the top players now. 

 

Brand-manager at SEB:  Way of "marketing" of banking products depends on country and level of its development. For example, 80% of operations in Baltic countries are done via internet, but there is absolutely opposite situation in Ukraine. So, the ways are differ. 

As far as i know rather popular and effective are different co-branding projects with big trade networks (electronics, cosmetics etc.) which include bonus programs; saving programs which banks offer when you pay with credit card: your exchange goes to your deposit account. 
Very important issue is cooperation with young adults (BTL, sponsorship, guerilla and so on).

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Now its my turn....

Adding in a few things which I got to know: 
1. Marketing through events organisation, where rallies are organised and proper shows and information about speicalised products are offered, which otherwise are not there. These products are more like offers or gifts. 
2. Use of internet or vitual space, like ICICI's new virtual banking concept called I-ZONE. 
3. Indirrect marketing, by proving basic info on banking services and how to effeciently use them. Like, SME(small and medium enterprises) Dialogue in ET.

These are some of the ways which I got through to. Customer loyality/retention is becoming one of the main aims. However one thing has stuck me: The market is down, the people afraid to go in and invest, in bonds etc. How are the banks going to flip this through marketing strategies?? 
And what else is new?? I'm all eager to know!!

But yes, it is also true that marketing tools like:

1. PR

2. Avertising

3. Personal Selling

4. Sales Promotion

5. Branding

6. Cross Selling

7. Incentives and Gifts

and so on.....

are and will remain effective as well as effecient tools..

Clearly, this presentation had made me see the gaps, the gaps which need to be filled. Some new innovative ideas...something to trigger the whole banking industry..

The insect in me is bugging me now...

haha...

:)