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Marketing Financial Services - US - June 2017

Published By :

Mintel

Published Date : Jul 2017

Category :

Advertising and Marketing

No. of Pages : N/A

The financial services industry is changing rapidly, and there are more alternatives to traditional institutions and traditional ways of transacting business than ever before. However, the industry is still struggling with trust, and institutions are searching for ways to overcome those issues and build loyal, long-term relationships with their customers. The key to successfully marketing financial services is to take a customer-centric approach, creating partnerships with customers that are built on an understanding of financial needs and a personalization of solutions.

Table of Content

OVERVIEW
What you need to know
Definition

EXECUTIVE SUMMARY
The issues
Customer service is a weak point with young customers
Figure 1: Customer satisfaction, by generation, March 2017
Young men are most vulnerable to switching tactics
Figure 2: Interest in switching, by gender and age, March 2017
Trust continues to be an issue
Figure 3: Trust in banks, by generation, March 2017
The opportunities
Improve customer service
Figure 4: Banking behaviors, by gender and age, March 2017
Parents may be especially interested in robo-advice
Figure 5: Attitudes toward finance and financial services, by parental status, March 2017
Customize credit card reward programs
Figure 6: USAA cashback email ad, 2016
Figure 7: Attitudes toward finance and financial services, by demographics, March 2017
Blacks and Hispanics need insurance
Figure 8: Location of accounts, Hispanic origin and race, March 2017
What it means

THE MARKET – WHAT YOU NEED TO KNOW
Historic and projected sales performance
Consumer confidence is trending up
Unemployment remains low and personal savings is higher

MARKET SIZE AND FORECAST
Historic and projected sales performance
Figure 9: Best- and worst-case forecast of personal finance market value, at current prices, 2011-21
Figure 10: Total US market value of personal finance, at current prices, 2011-21

MARKET FACTORS
Unemployment remains low
Figure 11: US unemployment rate, January 2012-April 2017
Personal savings rate is up
Figure 12: Personal savings rate

KEY PLAYERS – WHAT YOU NEED TO KNOW
Digital ad spending is up
Television advertising sales expected to decline
The value of email
Wells Fargo and the banking industry – How do banks rebuild trust?
AI is coming

WHAT’S IN?
Digital ad spending is up
Figure 13: Total Twitter followers by company, Q4 2016 vs Q4 2017
The value of email
Figure 14: USAA email ad, 2017
Figure 15: Discover email ad, 2017

WHAT’S STRUGGLING?
Wells Fargo and the banking industry – How do banks rebuild trust?
Figure 16: Attitudes toward finance and financial services, by generation, March 2017
Consumer thoughts on trust
Consumers may want texts and emails, but don’t respond
Figure 17: Banking behaviors, by generation, March 2017
Figure 18: Citibank and US Bank email ads, 2017
Television advertising sales expected to decline
Figure 19: US television advertising sales and fan chart forecast, at current prices, 2011-21
Figure 20: US sales and forecast of market, at current prices, 2011-21

WHAT’S NEXT?
Artificial Intelligence
Capital One and Alexa
Bank of America and Erica
Grange Insurance
Figure 21: Grange Insurance Alexa announcement email ad, 2017
Branch design continues to evolve
Bank of America

THE CONSUMER – WHAT YOU NEED TO KNOW
Reputation is almost as important as proximity to home
Satisfaction with customer service is highest with investment companies
Opportunities to reach out to younger consumers
Hispanics more likely to have accounts with online banks
Blacks and Hispanics need insurance

LOCATION OF ACCOUNTS
Hispanics more likely to have accounts with online banks
Figure 22: Location of accounts, by Hispanic origin, March 2017
Blacks and Hispanics need insurance
Figure 23: Location of accounts, by Hispanic origin and race, March 2017

FINANCIAL DECISION MAKING
Regardless of age, men make most of the financial decisions
Figure 24: Financial decision making, by gender and age, March 2017

IMPORTANT FEATURES OF FINANCIAL INSTITUTIONS
Reputation is almost as important as proximity to home
Figure 25: Most important features of financial institution, March 2017
Reputation is most important to Hispanic Millennials
Figure 26: Most important features of financial institution, by Hispanic generation, March 2017
Parents value accessibility
Figure 27: Most important features of financial institution, by parental status, March 2017

SOURCE OF FINANCIAL INFORMATION
Men are more likely to seek out information
Figure 28: Source of financial information, by gender, March 2017
Reaching Hispanic Millennials
Figure 29: Source of financial information, by generation and Hispanic origin, March 2017

CUSTOMER SATISFACTION
Satisfaction with customer service is highest with investment companies
Figure 30: Customer satisfaction, by type of financial institution, March 2017
Satisfaction is highest among older consumers
Figure 31: Customer satisfaction, by gender and age, March 2017

INTEREST IN CONTACT
Opportunities to reach out to younger consumers
Figure 32: Interest in contact, by generation, March 2017
Parents want more contact with institutions
Figure 33: Interest in services, by parental status, March 2017

RESPONSES TO MESSAGES
Men are more likely to respond
Figure 34: Response to messages, by gender, March 2017
Young consumers are more responsive
Figure 35: Response to messages, by generation, March 2017
Online banking customers are more attuned to social media
Figure 36: Follow institution on social media, by type of financial institution, March 2017

ATTITUDES TOWARD FINANCE AND FINANCIAL SERVICES
Switching activity
Men more willing to switch
Figure 37: Attitudes toward finance and financial services, by gender, March 2017
Customers of online banks are most responsive to incentives
Figure 38: Attitudes toward finance and financial services, by type of institution where account is held, March 2017
Figure 39: Ally Bank online ad, 2017
Figure 40: Capital One 360 email ad, 2016
Institutions need to match – or better – reward offers to get consumers to switch
Investment education will spur robo-advisers’ growth
Figure 41: Attitudes toward robo-advisers, by gender and age, March 2017

CHAID ANALYSIS
Methodology
Dads with young children more likely to be influenced by incentives
Figure 42: Attitudes toward finance and financial services – CHAID – Tree output, March 2017
Figure 43: Banking behaviors– CHAID – Table output, March 2017

CLUSTER ANALYSIS
Figure 44: Marketing financial services clusters, March 2017
Disengaged Consumers
Characteristics
Opportunities
Young Loyalists
Characteristics
Opportunities
Curious Interesteds
Characteristics
Opportunities

TURF ANALYSIS
Consumers get information from a wide variety of sources
Figure 45: TURF analysis – Sources of financial information, March 2017

APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Consumer survey data
Consumer qualitative research
Direct marketing creative
Abbreviations
Abbreviations

APPENDIX – TURF ANALYSIS
Methodology
Figure 46: Table – TURF analysis – Sources of financial information, March 2017

APPENDIX – MARKET BREAKDOWN
Direct marketing
Figure 47: Percentage change in mail volume, MoM, YoY, April 2016-April 2017
Bank account acquisition efforts
Checking accounts
Savings accounts
Credit card acquisition efforts
Mail volume
Figure 48: Mailers’ percentage of market share, January 2017-April 2017
Credit card mailing response rates

List of Table

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