Bank marketing in the new normal

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Bank marketing involves attracting and acquiring new customers through various media strategies. Compared to other services, banking products are distinguished by the fact that they are complex and abstract. Most customers do not easily understand financial services, their benefits and differences. The Covid-19 pandemic has transformed markets around the world. It has affected the banking industry in two ways: one by accelerating existing trends and the other by creating new ones and leading to a new normal. In bank marketing, enormous additional challenges have arisen. Thus, banks must react immediately to sustain their business and operating model.

With the integration of the internet and social media, the ubiquity of technology, and the increasingly connected world, marketing is no longer limited to traditional methods. The Covid-19 pandemic has transformed it. The banking marketing landscape has changed and become more dynamic, digitized and purpose-driven. The pandemic has disrupted the industry and significantly altered business processes. Communication with customers has shifted from face-to-face to face-to-face. Markets demand faster and more creative innovation. Messages focused on goals and the actions to support them are more relevant than ever. There has been a rapid increase in live chats, emails, text messages and social media use; in response to this change, banks and financial institutions have become more flexible and adaptive.

Embrace innovation

Covid-19 had a negative impact on the banking sector but facilitated the development of the fintech sector. Fintech has increased the convenience of the public lifestyle and improved business productivity. As security is tightened, the public becomes more dependent on fintech and the sustainability of the banking sector is badly affected. The coronavirus crisis has made it clear that despite all the progress they have made in recent years, most banks still have a lot of work ahead of them when it comes to digital transformation. It was only with tremendous effort and significant concessions from all sides that it was possible to implement the measures that had to be taken during the lockdown. We are seeing an openness and tolerance for innovation from customers, employees and regulators, which provides a unique opportunity to explore new paths much more quickly and, in fact, to see the kind of resistance that you often encounter while doing so. Now is the perfect time to revisit outdated business models and tackle long overdue changes. There is an increased need for digital interaction, a comprehensive offer beyond the bank and a demand for holistic advice and a long-term partner.

Consequently, the operating model has also been changed. Banks have established new ways of working, i.e. most of the remote work. There is pressure to accelerate technological change.

In a highly competitive market, customer needs are constantly changing. Therefore, our marketing strategy must be dynamic and flexible to respond to the changing scenario. The Nepalese banking sector has been experiencing a deposit crisis since the beginning of the 2078/79 financial year. Thus, the focus should be on mobilizing more deposits as they are the main source of profit for the bank. Electronic/digital delivery channels are constructive to improve the marketing of various products and services. By embracing digitalization, banks can provide improved customer services. Products can be effectively branded with customers in mind to sound catchy and appealing. There is a need to educate customers about banking products.

Efforts should be made to broaden and deepen the information flow process for the benefit and education of clients. Today, customers do not know how long a bank service takes. Rural clients do not know what loans are available for and how they can be used. Customers do not know all of the bank’s rules, regulations and procedures, and bankers keep them to themselves and are not interested in educating customers. It is necessary to inform customers at the base of the bank. Advertising is an eminent part of the marketing of banking products. Advertising must be such that it attracts people.

Respond to client’s needs

It doesn’t have to follow the usual storytelling pattern of a product. For effective advertising, the bank must understand people’s tastes and choices. To improve the marketing of their product, a bank should sell its products in rural areas. It’s time to invest and expand digital infrastructure rather than physical outlets. The bank should engage in aggressive marketing of its products, especially at the time of a new product launch, which will educate potential customers about the product and at the same time relieve staff at the branch level from explaining the product to all customers. Bank employees must render services to the satisfaction of the customer, and not according to his convenience or his whims. It is a fact that its employees do not live up to the expectations of its customers. They lack behavior, attitude and efficiency.

The phenomenon is obvious in urban centres. Therefore, it calls for immediate attention, which is the missing link in the whole marketing process. Social media has become essential for banks to assess meaningful customer experience. Social media offers them an ideal opportunity to strengthen these connections so that customers can interact with their banks in a more flexible, convenient and frequent way. This is the fastest way to distribute banking products and services to various market segments.

Banks cannot exist without customers. And the purpose of the bank is to create, win and keep a customer. Organizational design should be customer-oriented, and the bank should ensure that services are performed and delivered in the most efficient manner. Banks need to invest in fintech to improve their performance in the new normal. The ultimate goal of a bank is to provide complete satisfaction to its customers. Customers are increasingly demanding cross-channel digital solutions that allow banks to offer their customers holistic advice tailored to their individual needs. Banks must now adapt to the new normal and prepare accordingly. Banking marketing in the new normal should target different demographics by adopting new and better technologies, pushing digital applications and financial services and thus focusing on customer awareness.

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