Banking on Digital Growth
Banking on Digital Growth

Episode · 1 year ago

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

ABOUT THIS EPISODE

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 digitalgrowth, with James Robert Lay a podcast that empowers financial brand marketingsales and leadership teams to maximize their digital growth potential bygenerating ten times more loans and deposits. Today's episode is part ofthe by the book series where James Robert an locks and shares the secretsof Digital Marketing and sale strategies for financial brands fromhis upcoming book banking, on Digital Growth, a strategic marketing manifestoto save financial brands. Let's get into the show greeting's in hello, I am James RobertLay, and welcome to the sixth episode of the banking on digital growthpodcast. Today's episode is part of the by the bookseries, where I shareinsights from my book: Banking on Digital Growth, the strategic marketingmanifesto to transform financial brands. So today I want to talk to you aboutsomething just a little bit personal. In fact, from our primary and secondaryresearch, we found that there is a tremendous amount of shame tied up inthis subject. That is, is really deeply rooted in the subconscious beliefs andour 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 studiesthat ave found. It is easier for couples to talk about sex. Then it isthis very taboo and sensitive subject for a lot of us. What I want to talked to you abouttoday is money because, through the primary research that we've conductedhere at the Digital Growth Institute, we've asked this one question: how doesmoney make you feel as part of our...

...digital secret shopping studies and after asking this question to overa thousand different people, now, we've distilled the vast majority ofresponses into really three key feelings and emotions? Number one money is confusing nd, and this iswhere someone says yes, I know money is important, but I'm not sure what Ishould 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 I stressful, as I started this conversation because it doesn't reallymatter whatever I do. I don't feel I ever haveenough money, and that leads to the third point thatpeople share money is overwhelming, because I got this mounting debt. Thatmakes me feel like I'm drowning what people share. So, in addition to our own research,there's been a study that was conducted by the financial ap Stash and theyfound that sixty three percent of people reported money as a major sourceof stress in their life and in that same study, Stasha also found thatthirty four percent of people shared that they feeld they're too embarrassedto discuss financial matters because- and I find this so interesting- they're embarrassed to talk aboutfinancial matters because they feel that they're worse off than their peers. So there is some shame tie to that now.Now, coming back to the point of fiancial S, shame the Stash studhefound that twenty percent, or one and five people don't talk about money with others, because they're ashamed of theirpersonal financial habits. Moneycoach Tammy Lali noted that...

...money. Shame is the silent killer inher very moving teddax talk where she shared the tragic story of her brother,an the deadly told that financial stress took on him and his family, soyeah money is stressful and there wasanother study that was conducted by northwestern mutual, where they foundthat eighty five percent of Americans today fel stressed about their financesin some shape, form or fashion. So here we are in twosand and twentyand really for the next. What I see is two to three years. If, if we'relooking at the MAKROL level, money will be more stressful than everbefore as we're moving into a post, Cova nineteen world, and this tress isgoing to take a toll on people's health, their relationships they're overallsense of well being because there have been multiple studies showing thedirect correlation between a person's financial wellbeing, they're physical, well being andthey're mental. Well being so? What does this mean for you? What does this mean for your financialbrand? The reality is in this post coved nineteen world consumer behaviorhas changed even before covet came crashing down onall of us. People didn't trust financialinstitutions like they used to and now the financial brands that failto adapt to these new con consumer behaviors. These new attitudes, thesenew trends and they don't adjust their marketing and sell strategies toreflect the consumer, pain of financial stress and a told that's taking on themthrough their health, their...

...relationships there. Well being it's going to be a challenging roadahead, but unfortunately, that's what I'm seeing happening almostacross the board for the vast majority of traditional banks and credit unions,rather than a welcoming an opportunity to fill a new need with we'll just callit modern messaging and communication strategies that speak to thosedesperately looking for a partner that they can trust a partner that can guide them beyondthe stress they feel to a bigger, better brighter future. Most financialbrands are still doing the same old marketing. They always have in the sameways that they always have, moreover, legacy marketing and cellstrategies. I'm seeing don't really reflect the way consumerbehavior has changed, and I can't stress enough. Coved is reshaping the way consumers thinkabout banking, the way that they conduct financial transactions. JimMaruse- and I had a very good conversation about this in episode. Three, I wou D recommend, if youhaven't, listened to it, go back and listen to that 'cause 'cause. We getinto the longer that we're in this post covet world. The more consumers willtransform their behaviours. Technology has transformed our world,and digital has changed the way consumers shot for and buy financialservices forever. Now consumers make purchased decisions long before theywalk into a branch if they walk into a branch at all, but your financial brandstill wants to grow loans and deposits. We get it. Digital growth can feelconfusing, frustrating and overwhelming...

...for any financial brand marketing andsales leader, but it doesn't have to because James Robert wrote the bookthat guides you every step of the way along your digital growth journey visit,www, ddigital growth docom to get a preview of banking on digital growth.It is a strategic marketing manifesto that was written to save financialbrands and it is packed full of practical amprovent insights. You canuse to confidently generate ten times more loans and deposits, now back tothe show. So digital was changing the way thatpeople shop Kowit is really forcing that even more so the way that we shopthe way that we bank the way that we learn the way that we connect the waythat we relate the way that we even eat. And so when we look at all ofthis change happening, we were seeing before that consumers were coming intobranches less and less and less even in episode number five conversation with Bret King. We werereally reflecting upon his predictions dating all the way back to two thousandand 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 theysee everything that they can do through the digital channels through the mobilechannels. The problem is financial institutionshave been stuck in an outdated branch first growth model where the inpersonbranch visits were traditionally seen as the primary growth opportunity. Theprimary sells opportunity, but we have to look at thetransformation of consumer behavior because, most ofthe time,...

...a consumer's buying decision, even ifwe go back to precoveit and we'll call that, like before March of twentytwenty, the majority of the time, consumerswere already shifting and shaping a buying decisionfor financial product at a much earlier stage in the buying journey, regardlessof where they applied for a loan or an account whether that was online overthe phone or in the branch and if you'R, like many of the banks and Creditin,means that I've worked with. You know that your financial brand'sfuture growth is not going to come from branches alone if from branches at all.For that matter, in a postcoved nineteen world, you've watched ityourself, you've seen branch track for decline year after a year, and youmight have also struggled you know with this. When it comes to your marketingefforts, what I diagnose is dabbling and digital. Yes, you built a mobile,responsive, eighty ecompliant website. It looks beautiful, but in reality it'sstill just a glorified online broshere. Yes, you're sending out more emails,but maybe it's in the batch and blastpormat and most likely it's not ashighly personalized as it could be: You're, probably placing digital ads,but you're, not exactly sure how effective they are in regards toconversion and and measuring beyond clicks on an apply button, and thenyou're, probably posting some content on social media, but you're questioningthe value of that. What am I getting in return for thattime, and so you feel stuck because deep down, you know...

...traditional broadcast marketingstrategies and tactics do not work with digital. The same thing as truetraditional sell strategies do not work in a digital first world. So what's the solution? How are yougoing to finally transform your marketing and sell strategies for apostcoved digital, first mobile, first economy, empowering you to really maximize yourdigital growth potential and rocket ahead of your competitors, whether theybe other traditional financial brands or or digital financial brands? First,let's look at this revolution, an evolution for what it is and embrace it not fear it because, yes, we are movinginto be fourth industrial revolution. If we look back over the past a fewhundred years, there have been three indestrialrevolutions that we've all traversed through and now we are in the midst ofa fourth first, of course, it was the steam revolution of the late seventeenhundreds. Then we had the electric revolution of the eighteen, hundredsand finally, the computer revolution of the sixties and seventies, however, not as often discussed or or reallythought about, or the revolutions that happened in marketing andcommunications that accompanied the development in the industrialrevolution. So, for example, we went from print and newspaper to mass media,IETV and radio to digital the Internet and with the fourth industrialrevolution that Covid is a forcing function and moving us further andfaster into it. We have now moved beyond the computer age and entered anage or an error, the age of Ai, if you will, when we have exponentialtechnologies, robots, artificial...

...intelligence, virtual reality, theInternet of things in a vast array of other possibilities, some that wehaven't even considered at that point. So what does all this mean for theevolution of marketing? What does all this mean for the evolution of cells,particularly through the lins of financial services, see what the riseof automation comes? A new potential to fully realize the one to one consumercommunication strateties at scale that many have been talking about over thelast three four five six, seven years. It's it's becoming reality and the olddays of the one too many message strategy, whether be from marketing orfrom cells. It's dead, it's gone and a kind of one way broadcast marketing is simply no longer relevant today. Sothe name of the game is reaching people where they are along the course of their own consumerjourney so that you can communicate with confidence. You can build aconnection through empathy with a digital relationship that puts themfirst and just as we are entering the fourthrevolution of Technology were also in the fourth revolution of marketing. So throughout my book, banking, ondigital growth, we're going to return to some of these concepts of empathyand the consumer journey time and time and time again, because in fact, everysingle one of us is on a journey. Narrative is central to the humanexistence just for a moment. I want you to go back in your mind to your ninthgrade, literature, CCLASS and think about story for a moment, because one of the key lessons that weall learned...

...in that ninth grade lirerature class isthere can only be one hero in every story and that's exactly where we'regoing to pick up on this story on the next episode in the by the Book Serieson the banking on digital growth podgast until next time be well, do good andwash your hands. Thank you for listening to anotherepisode of banking on digital growth with James Robert Lay like what youhear 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 morepractical, anprovent insights that can guide you and your financial brandalong your digital growth journey visit. WWW: do digital growth dotcom to get apreview of James Roberts upcoming book banking on Digital Growth, a strategicmarketing manifesto to save financial brands inside you'll find a strategicblueprint framed her on twelve key areas of thocus that empower you toconfidently generate ten times more in loans and deposits until next time bewell and do good.

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