Consumers are more likely to connect with a brand that has a personal aspect to it; in other words, put a face to the brand and financial companies can immediately boost their credibility.
By 2022, the influencer marketing industry is predicted to be worth $15 billion, nearly doubling from 2019. As the term “influencer marketing” becomes more common across industries, there is one particular industry that is hopping onboard and transforming what influencer marketing looks like: the financial services industry. The growing interest by financial services companies in this digital marketing tactic stems from the increasing realization of its benefits and applications. Now, financial companies are making the most of establishing a connection with customers and what it can do to build credibility for their brand with the help of influencer marketing.
Building Brand Credibility
Customers can be wary of financial brands even though it’s been more than a decade since the financial crisis of 2008. Thanks to digitalization, many consumers now do their own research and demand access to a range of financial brands before making their final choice. This means that financial institutions, including banks and advisory firms, have to work harder to earn customer trust. Yet, a majority of financial institutions are missing the mark when it comes to earning customer trust in the age of automation, with only 16 percent of banks having mapped out the digital customer’s journey.
This is where influencer marketing comes in to bridge the gap. Consumers are more likely to connect with a brand that has a personal aspect to it; in other words, put a face to the brand and financial companies can immediately boost their credibility. According to reports, 70 percent of teens trust influencers over celebrities, while almost half of consumers depend on influencer recommendations via social media sites, including Instagram, Twitter, and YouTube. By working with individuals who have already gathered a following and done the foundational work of earning trust, financial brands can make their services being offered feel more personal.
Combating The Brand Trust Issue In Financial Services
Did you know that 50 percent of people do not trust their finance company? Lack of trust in financial institutions is not new, however influencer marketing is presenting a new way for companies to overcome this challenge. The dynamics of the financial industry have evolved. Compared to just five years ago, 55 percent of consumers now value brand reputation and customer service over premium interest rate offerings. Therefore, marketing has come to play a larger part. Now that consumers tend to trust word of mouth and other people above any other recommendations or reviews, the use of influencer marketing goes a long way in reducing fear. This also means the customer is more informed about what bank or service best fits their needs, whether it is a need to restore their financial rating to a favorable position or choosing the best savings tool.
We can expect to see influencer marketing being continually utilized by the financial industry well in the future. Thanks to influencers’ willingness to publish personalized content on their channels, consumers’ questions about their financial service company can be addressed in a manner that they trust most.
Freelance contribution especially written for Find Your Influence by Karoline Cooke