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Not so long ago, personal finance advertising was largely centred on dependability and trustworthiness. Then, in 2010, the UK’s inaugural challenger bank launched – Metro Bank became the first new high street bank for 100 years. What followed as smartphones became the norm, was a stream of online competitors. Here’s how the likes of Monzo, Starling and Tide changed the face of financial advertising.
What are challenger banks?
Challenger Banks are innovative financial institutions that leverage technology to provide modern banking solutions. They’ve gained prominence due to their user-centric approach, agility, and ability to swiftly adapt to changing consumer preferences.
Their emergence has transformed the financial sector, offering customers an alternative to traditional banks which relied on established reputation and physical presence. In contrast, Challenger Banks operate exclusively online, relying on user-friendly apps and websites, allowing them to target a digitally-savvy audience.
Alongside this transformation, these banks have brought about a paradigm shift in the way financial advertising is approached.
The shift in financial advertising
Challenger Banks have disrupted the conventional advertising strategies of the financial sector. They’ve adopted a range of innovative techniques to engage their audience and stand out in a crowded market. Here’s 8 ways these modern financial institutions have evolved financial marketing strategy.
- Digital-first approach
Challenger banks have embraced a digital-first advertising approach. This means employing digital channels such as social media, search engine optimisation (SEO) and email marketing to reach potential customers.
- Personalised user experience (UX)
Challenger Banks excel in providing personalised user experiences. Through AI-driven insights and data analysis, they tailor their advertising messages to resonate with individual customers’ financial needs and preferences. Building a brand from the ground up has enabled them to deploy advanced CRMs.
- Embracing social media
While established banks were slower to embrace social media, Challenger Banks effectively utilise platforms like Instagram, Twitter (X), TikTok and LinkedIn to showcase their unique offerings and connect with their target audience.
- Analytics and data utilisation
Data is at the heart of challenger banks’ advertising strategies. They collect and analyse customer data to refine their advertising and identify trends, ensuring their campaigns remain effective. Tailoring messages to match consumers’ unique needs enhances engagement and conversion rates.
- Mobile-centric advertising
Given the widespread use of smartphones for mobile banking, challenger banks prioritise mobile-centric advertising. Many campaigns centre around downloading the bank’s app to your phone as a starting point in the customer journey.
- Establishing trust and credibility
Building trust in a digital landscape is paramount. Challenger Banks leverage customer testimonials, industry awards, and security certifications to establish their credibility and win over sceptical customers.
- Storytelling
Instead of bombarding audiences with technical jargon, Challenger Banks are embracing storytelling to create emotional connections. Real-life narratives of people achieving financial goals or overcoming challenges resonate better, making the financial journey more relatable.
- Video marketing
Videos have taken over the internet, and finance advertising is no exception. Engaging, informative videos simplify complex financial concepts, making them more digestible for the average viewer. Platforms like YouTube and TikTok are becoming popular mediums for financial content.
Challenger Banks have not only changed the banking experience but have also revolutionised the way financial institutions advertise. Their digital-first approach, personalised strategies, and innovative collaborations have paved the way for a new era in financial advertising, making it more accessible and understandable for all.
Not so long ago, personal finance advertising was largely centred on dependability and trustworthiness. Then, in 2010, the UK’s inaugural challenger bank launched – Metro Bank became the first new high street bank for 100 years. What followed as smartphones became the norm, was a stream of online competitors. Here’s how the likes of Monzo, Starling and Tide changed the face of financial advertising.
What are challenger banks?
Challenger Banks are innovative financial institutions that leverage technology to provide modern banking solutions. They’ve gained prominence due to their user-centric approach, agility, and ability to swiftly adapt to changing consumer preferences.
Their emergence has transformed the financial sector, offering customers an alternative to traditional banks which relied on established reputation and physical presence. In contrast, Challenger Banks operate exclusively online, relying on user-friendly apps and websites, allowing them to target a digitally-savvy audience.
Alongside this transformation, these banks have brought about a paradigm shift in the way financial advertising is approached.
The shift in financial advertising
Challenger Banks have disrupted the conventional advertising strategies of the financial sector. They’ve adopted a range of innovative techniques to engage their audience and stand out in a crowded market. Here’s 8 ways these modern financial institutions have evolved financial marketing strategy.
- Digital-first approach
Challenger banks have embraced a digital-first advertising approach. This means employing digital channels such as social media, search engine optimisation (SEO) and email marketing to reach potential customers.
- Personalised user experience (UX)
Challenger Banks excel in providing personalised user experiences. Through AI-driven insights and data analysis, they tailor their advertising messages to resonate with individual customers’ financial needs and preferences. Building a brand from the ground up has enabled them to deploy advanced CRMs.
- Embracing social media
While established banks were slower to embrace social media, Challenger Banks effectively utilise platforms like Instagram, Twitter (X), TikTok and LinkedIn to showcase their unique offerings and connect with their target audience.
- Analytics and data utilisation
Data is at the heart of challenger banks’ advertising strategies. They collect and analyse customer data to refine their advertising and identify trends, ensuring their campaigns remain effective. Tailoring messages to match consumers’ unique needs enhances engagement and conversion rates.
- Mobile-centric advertising
Given the widespread use of smartphones for mobile banking, challenger banks prioritise mobile-centric advertising. Many campaigns centre around downloading the bank’s app to your phone as a starting point in the customer journey.
- Establishing trust and credibility
Building trust in a digital landscape is paramount. Challenger Banks leverage customer testimonials, industry awards, and security certifications to establish their credibility and win over sceptical customers.
- Storytelling
Instead of bombarding audiences with technical jargon, Challenger Banks are embracing storytelling to create emotional connections. Real-life narratives of people achieving financial goals or overcoming challenges resonate better, making the financial journey more relatable.
- Video marketing
Videos have taken over the internet, and finance advertising is no exception. Engaging, informative videos simplify complex financial concepts, making them more digestible for the average viewer. Platforms like YouTube and TikTok are becoming popular mediums for financial content.
Challenger Banks have not only changed the banking experience but have also revolutionised the way financial institutions advertise. Their digital-first approach, personalised strategies, and innovative collaborations have paved the way for a new era in financial advertising, making it more accessible and understandable for all.