By Gareth Charter, VP of Sales – MassLive Media
Consumers are switching banks and financial service providers at a pace and frequency never seen before. That’s the conclusion international consulting firm Rivel shared with the members of the New England Financial Marketing Association last week, and it appears to be only partially tied to the pandemic.
“Every good bank’s marketing budget should be doubled. You can quote me to your President on that.” That’s the resulting advice from Bruce Paul, Rivel’s Managing Director for Banking Research.
The pandemic poured gasoline on the fires of change in banking and financial services. Disruptors such as Capital One mocked the austere, traditional bank branch and enticed consumers with coffee shop checking and savings before Covid. A multi-year trend of increased mobile and online banking adoption has been documented by Rivel and others, but certainly the quarantining forces of Covid have ramped this significantly. One Massachusetts bank told us they saw mobile banking adoption increases in seven months they expected would have taken seven more years if not for Covid. Rivel’s most recent research on banking consumers across New England revealed that nearly half anticipate using their bank branch less from now on.
Loyalty driven by routine or familiarity has been disrupted. Interpersonal business relationships have been minimized. Technology driven convenience has won over change averse, late-adopters. Whether financial service institutions see this as threat or opportunity likely depends on how invested leadership is in their new messaging and positioning. For starters, is it new?
MassLive Media is expertly positioned to help. We have the tools, research, creativity, and understanding of the modern banking challenges. We partner with more banks and credit unions than ever before. And we have unrivaled access to the audience doing all of that switching. Let’s talk.