Digital Marketing in Finance – Interview with Dr. Sebastian Decker on the new ways of banking

14. September 2020 – Mandy Weinand

If the house bank in the place was in former times the exclusive partner in things finances, become Financial transactions now increasingly concluded online. Digital marketing has finally also
Banking sector reached. Over 50 percent of Germans say they already use online banking use – tendency rising. In Norway the share is already at 90 %. However, sensitive financial transactions in particular face a number of challenges online opposite.

How banks can manage to assert themselves against growing competition we are discussing today with marketing expert Dr. Sebastian Decker. He is the owner of the Marketing agency “Marketing for winners” and trainer of the Google Future Workshop. He advises companies how they can position themselves in the online market and how the targeted addressing customers on the Internet is successful.

The current Bitkom study “Digital Finance” states that one in two Germans can already imagine switching completely to a pure online bank. Digital marketing in finance. Who are the customers of online banks?

Sebastian Decker: Young people, men and high earners are most likely to use online banks. Clearly, loyalty to house banks is steadily declining. In the past, the only choice was between two three local banks that offer more or less the same products and conditions offered. There are still the firm regular customers in these banks, however the Rule of thumb today: The younger, the more likely one changes from the house bank to Online bank. Young people in particular have confidence in the Internet and therefore Skepticism about Internet banks.

How do you assess the current situation of banks and what do they have to do in order to continue to exist next to the cheap online banks?

SD: One thing is clear: traditional banks must not be allowed to buck the trend toward digitalization, if they want to be successful in the future. There are annually over three million new current accounts closed online. Comparisons have long been made online anyway. Even though most banks already offer digital accounts and online banking, they still have to catch up in terms of online marketing and strengthen their target group online address.

Why do traditional banks miss the importance of marketing themselves online?

SD: I don’t think they do. However, they have a particularly difficult time, because sensitive Transactions, such as those made in the financial sector, are available online for special challenges.

For example, financial service providers have much stricter data protection guidelines and closed IT systems are difficult to link with marketing platforms. Personal data cannot be linked so easily with the major platforms such as Facebook or Google can be shared. Tracking and thus the evaluation and optimization of marketing measures is difficult. But the good thing is that everyone is in the same boat, because the competition also has the same Problems with marketing online.

What can banks do to be able to compete in the online market?

SD: Online users are becoming more demanding and expect, also from banks, a top user Experience. By increasing the range of services and simplifying a change of bank, the fluctuation rate of customers also increases. To prevent this, customers must be satisfied can be set.

Apps, i.e. mobile applications, have become particularly important. Financial apps have become more than quadrupled in the last 5 years. If the bank does not follow suit here, young customers to the online banks with user-friendly apps that also safely and quickly on the road. Customers appreciate the fast, best mobile processing of daily transactions, such as bank transfers.

But beware, customers still want personal contact persons for important have concerns. Important decisions, like the construction financing, are then nevertheless gladly personally discussed. A personal contact person on site is also very important here. And that is now the great advantage of house banks.

It is therefore crucial to establish the right communication channel for every situation, to address the customer offline and online. The biggest challenge for banks at present is customer acquisition. This must be intensified online, because today customers search and compare online.

How can banks succeed in finding new customers online? What are the most important marketing channels for banks?

1. Google Ads:

For banks the most important online marketing channel is still Google Ads. The costs for However, new customers in the financial sector are very high. Great competition leads to high Click prices. It is therefore especially important to do extensive keyword research to find good to achieve results with the lowest possible advertising costs. Digital marketing with strategy.

For example, the search term “open current account” currently achieves a proud click price of 16.50 € and a search volume of only 1,900 persons per month in Germany. The keyword “Girokonto vergleich” on the other hand reaches a search volume of over 18,000 and a comparatively low click price of 2.15 €.

And who sets on the keyword “Deutsche Bank online” pays only 0.06 € per click at a search volume of no less than 450,000 search queries per month.

As can be seen here, the correct use of keywords in Google ads decisive for the success and the costs of the advertising campaign.

“Therefore, an important part of my training consists of the right keyword analysis.”

What is particularly important for banks is that they can determine the value of a customer over his life (Customer Lifetime Value) and not just for the moment. Therefore banks are willing to pay higher prices for new customers than other industries.

2. comparison portals as marketing channel for banks

Another marketing channel is comparison portals. Users are increasingly obtaining information to financial comparison portals such as Verivox or FinanceScout24. Can you register there with good offers, this is also a good way to win new customers.

Which offers are bought online?

SD: In the past it was only current accounts. Then call money and fixed-term deposit accounts. Now the trend is for German customers to become more inclined to invest and investment themes are becoming more important.

Finally, what advice do you have for financial service providers regarding online marketing?

SD: It is important to strike a balance between online service and personal customer loyalty. find. Customers are demanding simple digital solutions for everyday banking transactions, especially for on mobile devices.

For the important business, however, personal advice is sought. And the same applies also for marketing, it should be designed for both areas.

The costs for banks for each new customer are comparatively high. With the right Methods, tips and hacks can be really saved here.

Digital Marketing – Do you need support for your business? Dr. Sebastian Decker is available to you as a consultant, trainer or keynote speaker:

Sebastian Decker

Expert in Online-Marketing & Digital Sales-Strategies - Google Future Lab