Many financial services still downplay the importance of communication in the banking sector. They keep to official notifications, neglecting mail marketing, social media promotions, digital marketing, and other essential channels. Although such a basic approach allows them to stay afloat, they start lagging more and more.
Especially if compared to 48% of financial services that have already developed a clear user journey to facilitate communication with customers. These guys constantly improve their approaches to customer communication and invest in being top-performers in the future banking sector.
If you work in the banking industry, you might have to choose which camp to join: those who innovate or those who stick to traditional approaches. Or — to make your transition smoother — aim for the perfect mix between different channels and give your customers the right to choose how they want to be contacted.
To help you upgrade the elements of financial communication in your organization, Inkit has collected a set of tips and rules for financial institutions. Read on to learn about:
- Importance of communication in the banking sector through different channels
- 5 rules to use the main elements of financial communication right
- Additional tips for effective communication in the banking industry
- Why direct mail marketing and print financial communications are important for the banking industry
Importance of Communication in the Banking Sector Through Different Channels
Continuous communication between banking organizations and existing or potential customers has one goal – building trust. Researchers have even developed a separate formula to calculate the trust index for financial services and estimate their brand image. Trust depends on the organizational trustworthiness, which comprises expertise and competence, integrity and consistency, communications, shared values, concern, and benevolence.
Among the factors that impact the trustworthiness of an organization, communication is the main one. It helps to show customers your expertise and values, create strong connections, and eliminate any concerns. Thus, the importance of communication in the banking sector is undeniable.
As to the elements of financial communication, there are several channels to focus on. Although direct mail marketing remains essential for banks, online notifications are no less crucial. To keep the right balance, consider combining the following elements of financial communications:
- Email notifications. Send personalized emails to inform customers about any updates in their financial accounts, special offers, or relevant changes.
- Support team. Establish quality support to help your customers via online chat and phone. Anytime access to professional advice is one of the key elements of financial communication.
- Personal offline meetings. 64% of customers state that offline communications are the most effective approach to build relationships with banks. Although online banking is gaining popularity, make sure you still offer offline alternatives.
- Social media and digital marketing resources. Create an appealing website, map your location on Google, and run social media marketing campaigns. Don’t forget to follow the latest information technology trends, including mobile texting and instant messaging.
- Direct mail marketing and communications. Use mail pieces to promote your services and keep customers updated on their financial affairs. Since direct mail has a considerably higher response rate, it’s a great way to reach out to the people who ignore other channels and elements of financial communication.
The communication strategy incorporating all these core approaches is the foundation of effective communication with customers. It enables them to choose the most convenient point of touch and smoothly switch channels if necessary.
5 Rules to Use the Main Elements of Financial Communication Right
#1. Plan and schedule mandatory notifications
Speaking of the importance of communication in the banking sector, it’s worth starting with mandatory notifications. Monthly statements, bills, invoices, adverse action notices, and other legally required communications should be your top priority. Each type of these elements of financial communication has strict timing that must be followed. Be sure to schedule them from the very beginning based on local and state requirements.