Banking on Digital Growth
Banking on Digital Growth

Episode · 2 years ago

6) #ByTheBook: Financial Stress in the Fourth Industrial Revolution


87% of Americans reported experiencing "high" or "moderate" levels of anxiety in connection to money in a survey conducted by Northwestern Mutual.

And that was before COVID19.

Consumers have had to adapt to a new existence, where they conduct all of their day-to-day activities from home. 

The pandemic has accelerated the need for people to adopt a completely digital-based lifestyle at breakneck speed. 

People are sheltered. People are scared. And people are still stressed about their finances. Now perhaps more than ever. 

Are traditional banks and credit unions seeing an opportunity to fill a new and emerging consumer need? 

Sadly, from what I am observing, the answer is mainly no.

Developing modern marketing & sales strategies to reflect the pain of financial stress post-pandemic is going to be a must for financial brands. 

Some of the things I unpack in this episode:

-How consumers feel about money directly influences more than you may think

-Branch centric banking is dead

-Financial brands have an opportunity to rocket forward right now

-“Dabbling in digital” isn’t going to cut it.

-How you can be the guide in the financial stories of others

This episode is hosted by James Robert Lay  Founder and CEO at Digital Growth Institute

You can listen to this episode on Apple Podcasts, on Spotify, or here.

You're listening to banking on digital growth with James Robert Lay, a podcast that empowers financial brand marketing, sales and leadership teams to maximize their digital growth potential by generating ten times more loans and deposits. Today's episode is part of the by the book series where James Robert unlocks and shares the secrets of digital marketing and sales strategies for financial brands from his upcoming book banking on Digital Growth, a strategic marketing manifesto to say financial brands. Let's get into the show. Greetings in Hello, I am James Robert Lay and welcome to the six episode of the banking on digital growth podcast. Today's episode is part of the by the book series where I share insights from my book banking on Digital Growth, the strategic marketing manifesto to transform financial brands. So today I want to talk to you about something just a little bit personal in fact. From our primary and secondary research, we found that there's a tremendous amount of shame tied up in the subject. That is is really deeply rooted in the subconscious beliefs and our thought patterns that stem from our upbringing, from our childhood. And No, I'm not talking about sex. However, it's interesting to note there are multiple research studies that have found it is easier for couples to talk about sex than it is this very taboo and sensitive subject for a lot of us. What I want to talk to you about today is money, because through the primary research that we've conducted here at the Digital Growth Institute, we've asked this one question, how does money make you feel, as part of our digital...

...secret shopping studies, and after asking this question to over a thousand different people now we've distilled the vast majority of responses into really three key feelings and emotions. Number one, money is confusing and and this is where someone says, yes, I know money is important, but I'm not sure what I should do with it. I'm not sure should I should I invest it? Should I save it? Should I borrow it? The second point is people feel money is stressful, as I started this conversation, because it doesn't really matter whatever I do, I don't feel I ever have enough money. And that leads to the third point that people share. Money is overwhelming because I got this mounting debt that makes me feel like I'm drowning. So what people share? So, in addition to our own research, there's been a study that was conducted by the financial APP Stash, and they found that sixty three percent of people reported money as a major source of stress in their life. And in that same study also found that thirty four percent of people shared that they filled their too embarrassed to discuss financial matters because, and I find this so interesting, they're embarrassed to talk about financial matters because they feel that they're worse off than their peers. So there is some shame tied to that. Now, coming back to the point of financial shame, the Stash study found that twenty percent, or one in five, people don't talk about money with others because they're ashamed of their personal financial habits. Money coach Tammy lally noted that... shame is the silent killer in her very moving tedex talk where she shared the tragic story of her brother and the deadly told that financial stress took on him and his family. So yeah, money is stressful. And there was another study that was conducted by northwestern mutual where they found that eighty five percent of Americans today feel stressed about their finances in some shape, form or fashion. So here we are in two thousand and twenty and really for the next what I see is two to three years. If we're looking at the macro level, money will be more stressful than ever before as we're moving into a post covid nineteen world, and this stress is going to take a toll on people's health, their relationships, their overall sense of wellbeing, because there have been multiple studies showing the direct correlation between a person's financial wellbeing, their physical wellbeing and their mental wellbeing. So what does this mean for you? What does this mean for your financial brand? The reality is in this post covid nineteen world, consumer behavior has changed. Even before covid came crashing down on all of us, people didn't trust financial institutions like they used to. And now the financial brands that failed to adapt to these new conser consumer behaviors, these new attitudes, these new trends, and they don't adjust their marketing and sell strategies to reflect the consumer pain of financial stress and the toll that's taking on them through their health, their relationships, their well being. It's going... be a challenging road ahead, but unfortunately that's what I'm seeing happening almost across the board for the vast majority of traditional banks and credit unions, rather than welcoming an opportunity to fill a new need with, will just call it, modern messaging and communication strategies that speak to those desperately looking for a partner that they can trust, a partner that can guide them beyond the stress they feel to a bigger, better, brighter future, most financial brands are still doing the same old marketing they always have in the same ways that they always have. Moreover, legacy marketing and sell strategies I'm seeing don't really reflect the way consumer behavior has changed, and I can't stress enough covid is reshaping the way consumers think about banking, the way that they conduct financial transactions. Jim Maruse and I had a very good conversation about this in episode sewed. Three recommend if you haven't listened to it, go back and listen to that because because we get into the longer that we're in this post covid world, the more consumers will transform their behaviors. Technology has transformed our world and digital has changed the way consumers shop for and buy financial services forever. Now. Consumers make purchase decisions long before they walk into a branch, if they walk into a branch at all. But your financial brand still wants to grow loans and deposits. We get it. Digital growth can feel confusing, frustrating and overwhelming for any financial brand marketing and sales leader. But it doesn't have to,...

...because James Robert wrote the book that guides you every step of the way along your digital growth journey. Visit www dot digital growthcom to get a preview of banking on digital growth. It is a strategic marketing manifesto that was written to say financial brands and it is packed full of practical and proven insights you can use to confidently generate ten times more loans and deposits. Now back to the show. So digital was changing the way that people shop. Covid is really forcing that even more so, the way that we shop, the way that we bank, the way that we learn, the way we that we connect, the way that we relate, the way that we even eat. And so when we look at all of this change happening, we were seeing before that consumers were coming into branches less and less and less. Even in episode number five, conversation with Brett King, we were really reflecting upon his predictions, dating all the way back to two thousand and twelve, with branch today, gone tomorrow, and now, because of Covid, maybe consumers might not ever have to go into a branch at all because they see everything that they can do through the digital channels, through the mobile channels. The problem is financial institutions have been stuck in an outdated branch first growth model where the inperson branch visits were traditionally seen as the primary growth opportunity, the primary cells opportunity. But we have to look at the transformation of consumer behavior because most of...

...the time, a consumers buying decision. Even if we go back to pre COVID, and we'll call that like before March of two thousand and twenty, the majority of the time consumers were already shifting and shaping a buying decision for financial product at a much earlier stage in the buying journey, regardless of where they applied for a loan or an account, whether that was online, over the phone or in the branch. And if you're like many of the banks and credit means that I've worked with, you know that your financial brand's future growth is not going to come from branches alone, if from branches at all for that matter, in a post covid nineteen world. You've watched it yourself. You've seen branch Trafford declining year after year, and you might have also struggled, you know, with this when it comes to your marketing efforts. What I diagnosed is dabbling in digital. Yes, you built mobile responsive at a compliant website. It looks beautiful, but in reality it's still just a glorified online brochure. Yes, you're sending out more emails, but maybe it's in the batch and blast format and most likely it's not as highly personalized as it could be. You're probably placing digital ads, but you're not exactly sure how effective they are in regards to conversion and and measuring beyond clicks on an apply button. And then you're probably posting some content on social media, but you're questioning the value of that. What am I getting in return for that time? And so you feel stuck because deep down you know traditional broadcast marketing...

...strategies and tactics do not work with digital. The same thing is true traditional cell strategies do not work in a digital first world. So what's the solution. How are you going to finally transform your marketing and Cell Strategies for a postcovid digital first, mobile first economy, empowering you to really maximize your digital growth potential and rocket ahead of your competitors, whether they be other traditional financial brands or or digital financial brands? First, let's look at this revolution and evolution for what it is and embrace it, not fear it, because, yes, we are moving into the fourth industrial revolution. If we look back over the past few hundred years, there have been three industrial revolutions that we've all traversed through, and now we are in the midst of a fourth. First, of course, it was the steam revolution of the late seventeen hundreds, then we had the electric revolution of the eighteen hundreds and finally, the computer revolution of the S and S. However, not as often discussed or really thought about or the revolutions that happened in marketing and communications that accompanied the development in the industrial revolution. So, for example, we went from print and newspaper to mass media, IE TV and radio, to digital, the Internet. And with the fourth industrial revolution that Covid is a forcing function and moving us further and faster into it. We have now moved beyond the computer age and entered an age earn error, the age of Ai, if you will, when we have exponential technologies, robots, artificial intelligence, virtual reality,...

...the Internet of things, in a vast array of other possibilities, some that we haven't even considered at that point. So what does all this mean for the evolution of marketing? What does all this mean for the evolution of cells, particularly through the Lens of Financial Services? See, with the rise of automation comes a new potential to fully realize the one to one consumer communication shure ategies at scale that many have been talking about over the last three, four, five, six seven years. It's becoming reality and the old days of the one too many message strategy, whether it be from marketing or from cells to dead it's gone, and that kind of one way broadcast marketing is simply no longer relevant today. So the name of the game is reaching people where they are along the course of their own consumer journey so that you can communicate with confidence, you can build a connection through empathy, with a digital relationship that puts them first. And just as we are entering the fourth revolution of technology, we're also in the fourth revolution of marketing. So throughout my book banking on digital growth, we're going to return to some of these concepts of empathy and the consumer journey time and time and time again, because in fact, every single one of us is on a journey. Narrative is central to the human existence. It just for a moment, I want you to go back in your mind to your ninth grade literature class and think about story before a moment, because one are the key lessons that we all learned in...

...that ninth grade literature class is there can only be one hero in every story, and that's exactly where we're going to pick up on this story on the next episode in the by the Book Series on the banking on digital growth podcast. Until next time, be well, do good and wash your hands. Thank you for listening to another episode of banking on Digital Growth with James Robert Laigh. Like what you hear, tell a friend about the podcast and leave us a review on Itunes, stitcher or spotify, and subscribe while you're there to get even more practical, improven insights that can guide you in your financial brand along your digital growth journey. Visit www dot digital growthcom to get a preview of James Roberts upcoming book, banking on Digital Growth, a strategic marketing manifesto to save financial brands. Inside you'll find a strategic blueprint framed around twelve key areas of focus that empower you to confidently generate ten times more loans and deposits. Until next time, be well and do good.

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