Over the last seven years of research by the Digital Banking Report on the State of Financial Marketing, the banking industry has moved from talking about the power of data and advanced analytics to actually beginning to use AI-powered tools in day-to-day tasks. And, although the technology is still rather new, the list of tasks it can complete is steadily growing. Based on the research, AI will usually augment, as opposed to replace, traditional marketing functions. But, it will still have a disruptive effect on the industry. We are already seeing shifts in media used and marketing talent being sought as organizations try to find ways to drive costs down and performance up through AI-powered solutions.
Most financial marketers are ill-equipped to succeed in the new world of digital marketing. Never before has the ability to learn new skills and competencies been so important. A modern marketing model must be applied and an always-on approach to learning must be embraced by marketers at all levels. Subscribe to The Financial Brand via email for FREE!Over the past several years, the dynamics of financial marketing have changed dramatically. While the past was a combination of mass media and some direct channels, the addition of new channels and technologies has impacted not only the tools available, but also the skills required to be successful.
Financial services firms around the world are using automation on transform their operating models as they target process efficiency and reduced operational costs. The economics of this efficiency play are compelling: a 10–25% increase in cost savings, potentially reaching 30–50% with cognitive automation. But, in a challenging and highly competitive environment, financial services firms are seeking additional ways to unlock further value beyond just the efficiency play. We found that 45% of financial services organizations believe that internet giants, such as Google, Facebook, or Amazon, will be their main competitors in the next five years. This is one factor that explains why we are seeing a gradual shift in focus to intelligent automation as companies target increased revenue growth and customer satisfaction.
New technologies like artificial intelligence, blockchain, the Internet of Things, open banking APIs and robotic process automation will rock the banking ecosystem down to its very core, disrupting the way people bank and the manner in which institutions deliver financial services. Over the past several years, digital technologies have changed the once staid banking industry. The collection and advanced analysis of data has changed the way customers are viewed, and the introduction of mobile devices has altered the way consumers access their bank. In short, digital transformation is on the front burner of all banks and credit unions. At a time when most organizations are still playing catch-up, a new wave of digital technology has the potential to change the way organizations deliver banking services even further.
Digital transformation in marketing is simply the application of information and technology to bolster marketer's performance. The marketing technology landscape has exploded in the past 3 years, with 323 marketing tech startups fetching over 11 billion from venture capitalists in 2015 alone. The unprecedented growth in marketing technology landscape is overshadowed by the massive growth of information and business related data production and consumption. We are in the age of the customer, where everyone is mobile, social, data driven and almost always connected. According to Pew 2016 research, 1 in 5 U.S. adults (50 million) are almost always online.