2 | VERICAST.COM Understand why fintechs are acquiring customers at such a rapid rate. Is it because they offer such a great product? Typically, fintechs are not offering anything different from traditional banks and credit unions. The rates are competitive. It comes back to the account opening experience. Fintechs are very efficient at opening accounts. If it takes more than five minutes to open an account at your institution, you’re losing out to the fintechs. Also, fintechs can fund accounts online much easier than traditional institutions. For consumers, it’s literally their first point of entry into the organization. That online account opening must be very efficient and informative, meaning it has to be quick and highly responsive to questions about loans and deposits. And banks and credit unions have competitive advantages of their own, such as access to more channels. The biggest channel is a branch network, which allows bankers to connect with customers and members on a personal level about a service issue or an opportunity. It is a different marketing effort. Gen Zers tend to be more tech savvy than baby boomers. Financial institutions must be more relevant and visual in their messaging, as well as more precise when selecting the right marketing channels. Online messages are more effective when they sound like real conversations because it makes them more personal, familiar and engaging. Q3 Q4 HOW CAN FINANCIAL INSTITUTIONS COUNTER THE EFFORTS OF FINTECHS? HOW DOES MARKETING TO GEN Z REQUIRE A COMPLETELY DIFFERENT STRATEGY, AND WHAT DO FINANCIAL ORGANIZATIONS NEED TO CONSIDER? It’s also important to understand what competitors are doing. How are they pricing? How are they selling? What are their offers? Some institutions don’t fully understand their brand and how best to leverage it in the marketplace. They lose their focus and what makes them unique. Finally, institutions can more efficiently acquire customers by training their staff and utilizing them to their full potential. utah.bank 12
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