7 BFSI trends that gives a hint at the future of advertising
02 November 2016
The kaleidoscopic world of Banking, Financial services and Insurance services keep undergoing transformations. Given this, the BFSI sector is leaning towards transformations in the field of digital advertising. Their latest trends do talk about the scope of commerce advertising in the days to come.
Here’s what we can learn from this year’s top trends shaping the BFSI sector:
1. Financial Marketers Shifting To Digital Advertising
Financial marketers are opting for digital ads because of diminishing returns and poor audience engagement in traditional advertising channels. Around 67% are of the opinion that digital is a more efficient and cost-effective when it comes to reaching targeted consumers. The BFSI industry in FY 2014/15 accounted for INR 728 crore of digital advertising spends just behind e-commerce and telecom. These figures are expected to grow at a rate of 35% CAGR over the next 5 years. Furthermore, the BFSI sector spent a higher share of its advertisement expenditure on digital compared to other verticals with 40 % of its overall advertising spends going towards digital.
2. The Substantial Increase Of Mobile Wallets
Going by RBI data, m-wallet transactions have grown by a CAGR of 164% in the last three years and have reached more than 600 million transactions in 2015-16, up from just 32.7 million in 2012-13. With the introduction of mobile apps such as Chillr by HDFC and Pockets by ICICI, the aim of targeting transacting millennials is growing steadily.
3. The Rise Of Digital-Only Banks
Although it might seem that India is far away from a world of digital-only banks, with numbers suggesting the tremendous growth of smartphone adoption and internet penetration, the current scenario seems to be changing at a fast pace. In fact, DBS recently launched a digital-only bank in India and it is expected that other Indian banks will soon join the league. The movement towards digital-only banks builds a strong case for banks to invest in digital advertising efforts and explore platforms and opportunities that would deliver strong conversion and ROI metrics.
4. Targeting People At The Right Moment
In a recent report from The Banker and SAP on customer engagement, it was stated that 57% of banks said they are able to disseminate real-time information to customers, such as pre-determined alerts for account balances. Currently, people need personalized interactions that are relevant and add value for them at the right time.
5. Personalization Is The Key To Gaining Consumer Trust
Consumers are demanding more targeted, relevant, and personalized communications from brands. Financial organizations have started studying consumers’ behaviours, attitudes, and devising ways of presenting real-time information with relevant and targeted messaging.
Gone are the days when the ‘One size fits all’ approach worked for organizations. A change in the mindset of people, industry and trends also demands for a change in your strategy.
The increasing importance of data analytics, personalized content and stronger targeting of transacting consumers is quite evident from the above mentioned points.
To encapsulate, Flipkart Ads can prove to be a beneficial tool for the BSFI sector with its end to end advertising solutions in the days to come.
6. The Importance Of Big Data
Financial institutions have started realizing the significance of data analytics. Every transaction, every loan, and every checking account contains data that can be leveraged in ways that help their end users have a better experience. In short, financial institutions that effectively leverage data analytics and targeted marketing will gain market share for years to come, while those who ignore these benefits will be caught flat footed.
7. The Increasing Relevance Of Tracking
Vishal Sampath, CEO at SMG Convonix reported that the primary reason digital advertising spends are so high in BFSI is due to the ability to track online conversions and fulfilment. This makes it easier to demonstrate business impact and ROI in these sectors. For example, you can track the entire conversion process from the person looking at a banking or insurance product to him finally converting. This makes it easy for the management to see an actual business impact and compare the efficiency of this medium versus other traditional channels.