The metaverse is a concept still in its infancy, and some are dismissing it as hype. But it is highly likely that virtual engagement in various forms will play increasingly important roles in our lives. Potential use cases for a metaverse environment range from creating more immersive forms of collaboration, to employee training, to developing imaginative new customer experiences. It would be wise to closely monitor developments in the area and begin to imagine potential strategic uses of the technology.
Partnerships with fintechs are one way for traditional banks to venture into BNPL. Targeting niche markets such as orthodontists, veterinarians, travel services, etc. can be a highly effective way to build volume with this product by working with select business groups.
There are interesting differences between digital bank and neobank customers according to a recent JD Power survey. On average, neobank customers tend to be female, less educated, and less wealthy. They also rely more on recommendations from friends/family than on doing their own research. Lessons for traditional banks include the importance of personalization, recognizing customer aversion to fees, and promoting service levels to address customers’ problems.
Bank of America has made a strong commitment to financial wellness and believes it to be a true differentiator. BofA has created a customer experience that focuses on financial health by offering powerful tools to simplify personal financial management, levering detailed analytics and customer knowledge, and providing financial education supplemented with expert advice when needed. BofA believes that its suite of financial wellness services provides a valuable service and helps prevent customer defections to fintechs.
While still in its early stages, blockchain technology has the potential to transform the financial services industry. Completely aside from supporting cryptocurrencies, blockchain-based solutions can offer greater transparency and security while improving efficiencies through lower transaction costs and reduced potential for human error. Automation of systems and processes, improved transparency and compliance, streamlining credit approvals, and faster payments, clearing, and settlement are all potential banking-related benefits.
Strategies for addressing the complexity of bank marketing start with building an audience based on data. Qualified leads can then be approached with personalized offers and nurtured through automation. Relationships can be expanded by delighting customers, with further outreach coming from reviews, ratings, and referrals.
