The financial services sector was one of the sectors to really take advantage of the internet and the advantages it offers. For example, financial firms invested heavily in broadband to be able to execute trades faster. Despite its early embrace of the digital revolution, financial service companies have lagged when it comes to utilizing digital marketing for their firms. The norm continues be old fashioned ways of advertising through mouth to mouth and mass emails.
Fund managers, especially smaller ones are putting their bottom lines on the line when they choose to bypass the digital marketing revolution. One reason why digital marketing continues to elude most fund managers and financial services companies is because their current model works. This conservative field often takes the approach of if it’s not broken don’t fix it. Building up a digital marketing footprint requires extensive time and resources, so many firms are thinking twice before diving into digital marketing techniques that other sectors such as retail have wholeheartedly embraced.
While the digital marketing revolution is in the infancy stages for fund managers, there is no denying that it will inevitably become part of the industry in the future. Here is what you can expect to occur. The digital revolution will continue to make fund managing fees lower. This will spur competition. After all, why would someone want to pay a premium for your service if there is a much cheaper competitor out there?
Digital marketing will also change the way fund managers obtain clients. The traditional way involves word of mouth, fancy lunches, plenty of conferences and face to face meetings. With digital marketing clients can be obtained for a fraction of the cost and in less time. Video communication via the internet makes it easier to communicate long distance as well. Secure communication has also made it easier to discuss financial transactions that fund managers often have to make.
Asset managers can even utilize artificial intelligence and machine learning to better their current advertisements. For example, they can use analytics to see which ads get the most views. They can also see which ads and videos are the most popular or have the highest conversion rates. Fund managers spent lots of research on what to invest in. Why shouldn’t they do research on what digital ads work best?
It is time for financial managers to use digital marketing for their benefit. It is only a matter of time before it becomes the norm. There is much to gain from using the power of the net for marketing financial services. Yes, it will disrupt the way things are done now, but ultimately it will benefit customers and managers alike if used correctly.