The digital landscape is changing the financial system in a major way. Over the last half decade, banks reported a significant shift towards online banking. However, the Financial Brand, report that interest in mobile banking has tapered off this year due to security fears.
According to data released by the British Bankers Association and EY, the number of customers using banking apps rose by 365% between 2012 and 2017. Banks have so far been encouraged to focus their attention on providing customers with a full suite of on-the-go tools that make banking quicker and more convenient. Mobile payments should seal the deal.
The capabilities of smartphones has raised the expectations of consumers to perform financial transactions directly from their handsets. Mobile innovations such as point-of-sale integration, in-app payments, mobile wallets and growing interest around cryptocurrencies as a form of payment, promise to pave the way towards a new way of shopping.
Whilst technology firms have responded by creating digital solutions for common banking problems, the integration of mobile payment applications are lagging. Retailers and consumers are slow to adopt technologies that will pave the way for the paradigm shift and consumers are skeptical due to a lack of understanding and fears over security.
Mobile payments is an emerging market which promises substantial growth. Apple Pay and Alipay have both been leading the way by using video content to inform customers of the benefits and uses of mobile payments. However, complex financial regulations have created difficulties and stagnated expansion.
The general consensus is that banks need to do more to alleviate fears of consumers and showcase their products. Mobiles users have shown their intention to use mobile payment facilities with an increase in peer-to-peer payments, and India is being used as a testing ground to shepherd in cashless countries.
Experts anticipate the next few years will see a swing towards mobile payments across the board. Growth in global economies has increased spending power, and with digital-savvy spenders at a premium, the onus is on banks to ensure customers are encouraged to adopt incoming innovations.
Citibank has recently expanded their investment in financial technology with the opening of new London offices to house their Innovation Lab. The initiative will focus on software development across a broad range of financial sectors.
Companies leading the m-payments trend have developed advanced financial infrastructures to create unique market conditions. Alipay, for example, has persuaded established native players to leverage existing markets by building an entire financial ecosystem which has encouraged m-payment providers across South-East Asia and India gain a share of the remittance market.
Video content strategies
The use of visual media is not a new strategy for the financial sector, but banks should be looking to use video marketing to inform customers of m-payments and humanise your brand to earn the trust of consumers that of wary of the corruption within the banking establishment.
Experts have forecast the banking industry will spend $1.3 billion on video marketing in 2018. Some of the trends we expect to see not only focus on mobile payments and banking apps, but turnkey solutions that enable mature markets to ease in the idea of contactless mobile payments via trusted sources such as Apple Pay, MoneyGram and AliPay.
In-app videos and social media networks provide marketers with often-visited platforms. Visual content should provide information to customers about how they can get the most out of using mobile payments facilities such as investment advice and how to share payments with friends.
Interactive and personal video content provides customers with a personal experience they crave from banks. Millennials are more distrusting of banks than any other generation and 44% say banks do not understand them.
Video is also an ideal tool to promote transparency in light of the restructuring transition banks will have to go through in order to ease in new financial infrastructures. Consumers want the financial system to be overviewed by public networks rather than monopolised by banks. The emergence of blockchain technology suggests there’s a strong chance that could happen.
However, the average consumer does not understand how the blockchain works and negative views in the media – especially from financial institutions – has dampened enthusiasm and cast more dispersion on the banking industry. Banks have a point to prove and publishing content that promotes a healthy and honest brand is desperately needed in order for consumers to trust mobile payments.
The swing towards digital payments present remarkable opportunities for banks and consumers. But for financial institutions to bridge the gap and earn the trust of customers, marketers have to provide relevant information and a better customer experience. Video marketing is proven to be the best way of reaching customers.