5 Key Questions Fintechs and Financial Institutions Must Answer to Stay Ahead

From AI’s impact on service delivery to Gen-Z’s growing influence and the rise of dark social, consumers are interacting with and choosing their financial partners in totally new ways. if you’re a financial services organization that’s been relying on historic or geographic dominance, it’s time for a shift in strategy.

Here are five crucial questions you should ask to build a strong, resilient financial services brand in 2024 and beyond:

1. “Are we leaning too hard on our history or geography?”

Regional or local financial institutions have often relied on their physical presence to build customer relationships. And, back in the day, this was a winning strategy.

But in today’s world, while being regional or local may be a compelling fact, it’s not a comprehensive brand identity. 

Fintech startups have disrupted the industry by focusing on user experience, targeted products and services, and solid digital marketing, building strong brands without a physical presence.

To stay competitive, financial organizations can’t leverage geography or history alone. Enhance your digital presence, invest in innovative products, and build brand loyalty through both physical and virtual community engagement and customer service.

Branding and digital presence manifest differently across financial institution types and sizes, so keep in mind there’s no one-size-fits-all approach. Engage with your customers to get feedback and determine what solutions meet their needs.  

2. “What happens when our customers have more regular access to AI?”

AI is capable of automating not only loan processing and fraud detection but also basic investment management. And this technology is only becoming more powerful and influential.

So, what can’t AI do?

Well, I’ll tell you.

AI can’t build strong, authentic customer relationships. 

Beyond that, financial services organizations should focus on excelling in areas where AI struggles, such as complex financial planning and personalized wealth management. Think of ways to use AI beyond saving time. How can AI enhance your customers’ experience? 

By leveraging AI to develop superior, more convenient products and services, financial organizations can elevate the customer experience, stand out, and strengthen credibility.

3. “Are traditional PR strategies hindering the growth and success of our brand?”

If your organization still relies on outdated press releases, the answer is yes.

The media landscape has transformed. Millennials and Gen-Zers are more likely to get their information from YouTube than they are from cable news, half of all journalists are now freelancers, and social media has immense power when it comes to introducing brand content and going viral.

Today, financial institutions must leverage the entire scope of earned media to their advantage.

For example, when we worked with Chase Business, a customer survey revealed its customers’ number one need was help with marketing.

So, we launched a Chase “bizmobile” staffed with small-business marketing advisers, traveled around the country meeting customers, and conducted a press tour to ensure everyone knew about it.

Remember, helping your customers reach their goals helps your organization achieve its own.

4. “Are we keeping up with rapidly changing demographics?”

By 2024, Gen-Z will overtake Boomers in the workforce. These digital natives look for seamless, mobile-first, and socially conscious financial services.

So it’s no surprise that, at the same time, we’re seeing trends like open banking, which enables individuals to share their financial data with financial service providers (like budgeting apps and investment platforms) instead of that data belonging exclusively to specific banks. 

Gen-Z is also better equipped to find financial institutions offering competitive interest rates–and may invest accordingly. Even so, Gen-Z is ultimately a generation driven by values and convenience. So it’s crucial to consider comprehensive, nuanced ways of appealing to Gen-Z. 

For instance, Gen-Z is known for seeking out information in video format. If your organization isn’t producing videos, you might be missing out on or even alienating them.

5. “How is our social strategy incorporating the rise of dark social?”

While public engagement once reigned supreme, private messaging on apps like WhatsApp, Discord, and iMessage is changing the game. In this “dark social” realm, conversations and content sharing take place unseen by traditional marketing measurement metrics. 

Explore creative ways your brand could engage with customers on dark social. For example, an investment firm might create a secure, moderated messaging group community for high-net-worth clients to discuss market trends and investment opportunities. 

This isn’t just an altruistic move. The investment firm stands to benefit from enhanced client engagement, improved retention, the potential for increased assets under management, and valuable client insights.

The financial services landscape is evolving, driven by changing demographics, technological advancements, and consumer preferences. But by asking–and answering–the five key questions above, your organization can start taking the necessary steps toward remaining relevant and impactful in the years to come.