Saturday, April 18, 2015

Facebook Marketing for Financial Institutions

A recent article in the Financial Brand talked about the role that Facebook plays in financial services marketing, particularly with regard to mobile.

Traditionally, banks have been very hesitant to move into mobile marketing. This occurs for a couple reasons

  1. Regulatory - many banks have compliance groups that worry about selling on a mobile device. Given these concerns, the advertising would be focused on brand-building, which is hard to attribute to actual sales, so often would be overlooked.
  2. Its a new channel - making the switch to a new channel is always difficult. Since most customers do not actually complete the transaction and fund while on their mobile device, it is very tough to make the business case for mobile marketing
 In the article, they talk about the large number of customers that login daily on their mobile device and monthly more broadly. Given this volume of customers and the attention that consumers give to their mobile device on News Feeds and Instagram, this is clearly a medium that will only grow over the next couple of years.

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