4 Innovative Banking Moves Bank Marketers Can Admire

In an age of aggressive fintech marketing and consumer uncertainly, banks need to work harder to deliver innovative solutions and marketing messages.

Tight budgets, changing consumer behavior, disrupted markets, and fierce competition from aggressive fintech marketing companies forced rapid transformation across the financial industry. Of course, the coronavirus pandemic encouraged banking to accelerate some of these trends in effort to maintain their relevance and respond to disruption.

Four progressive bank marketing examples 

According to The Financial Brand, a successful financial services marketing agency would urge today’s banks to focus on customer experience, new media, and results-oriented efforts. To gain some inspiration, consider a few of the best examples from across the fintech and banking sector.

1. Encourage customers to save more

Acorns offers an example of a fintech company that grew its business by letting savers invest in stocks by transferring round-ups from purchases to their investment accounts. To use this program, Acorns investors have to register their bank accounts, so Acorns can track spending and withdraw the right sum.

As an example, spending $37.50 on takeout food with a registered checking or debit account would result in moving .50 to the Acorns investment account. Even though a father-son team started this company in 2012, it already manages over $1.2 billion in investments. This supports the idea that saving cents at a time makes financial sense for the company’s customers and of course, its owners.

Since Bank of America already had customers with checking accounts, they emulated some of Acorn’s ideas with their Keep the Change® program. Current checking account holders didn’t have to do anything but spend money in order to grow their savings.

Even if this program averages saving just a dollar a day, over the course of a few years, the balance can easily grow to hundreds of even thousands of dollars. With an interest-bearing savings account, savings can compound and grow even faster. As savings and interest returns grow, many customers will feel encouraged to save even more.

In particular, this kind of program tends to appeal to younger adults. This gives Bank of America a chance to invest in the financial stability and loyalty of long-term customers. At the same time, the bank benefits by encouraging the growth of their deposits through innovative fintech marketing.

2. Offer struggling customers crisis relief

In particular, banks should know that some of their customers may face unusual struggles during the pandemic. Very often, offering resources to tide these people over for a few months works out better for both the customer and the banks  than generating more defaults and losing customers.

As an example the Capital Good Fund offers reasonably low-interest loans for up to $1,500 with deferred payments and interest for three months. If the crisis continues, the finance company may extend deferrals too, though they were originally planned with 15-month payoffs in mind.

Even though offering loans to distressed customers might appear risky, the relatively small size of the loans can minimize risk and generate plenty of good will. Discover, HSBC, and other finance companies have their own versions of skip-a-payment programs to help tide over struggling customers.

3. Connect and teach

Some savvy banks have found a great way to add valuable content to their social platforms while improving customer experience. As one example, Queensborough National Bank developed a program they call IQ University. Topics include credit, investing, budgeting, and homeownership. Material like this can help inform customers and provide plenty of useful, engaging content for blogs and social sites.

As another example, other banks found that socializing on such established networks as Facebook did not help them reach younger customers as well as they would like. To support this idea, recent studies found that younger adults and older teens may gravitate to Snapchat, Instagram, and YouTube as much or more than Facebook. Before making an investment in fintech marketing for financial services, it’s important use the platforms that are most likely to have already attracted the target market.

4. Use video testimonials

Testimonials help because they give businesses a chance to connect with new customers by letting current customers tell their stories. Instead of just having text testimonials, The Bank of Elk River produced a video that recounted the story of how their bank helped a family purchase a home.

The American Banker’s Association even recognized the video with an award. More than that, viewers could hardly help but feel touched by the heartwarming story and perhaps, imagine having a similar experience of their own.

A financial services marketing agency should put people first

Even without a global pandemic, customers probably don’t care that much about a bank’s bottom line. They want to work with financial companies that appear to understand their goals and problems. An experienced financial services marketing agency can help research both prospective and current customers to find innovative solutions and of course, the best marketing platforms to connect on.

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How Fintech Marketing Turns the Unbanked into Bank Customers

Banks have an opportunity to grow by serving millions of unbanked and underbanked people. Get fintech marketing insights to the unbanked and learn how to attract them.

In 2017, the FDIC ran their last survey of unbanked and underbanked Americans. Unbanked refers to the 8.4 million American households that do not rely upon banks or credit unions at all. This population doesn’t have bank accounts, credit cards, and other kinds of bank loans or investments. In contrast, almost 50 million U.S. adults had a bank account but still relied on non-bank services for many financial needs.

Banks can do more to understand why these people don’t access banks.  In turn, banks can use these insights to work with a financial services marketing agency to develop and promote services to more people. Helping these people benefit from banking services will give the banks a chance to grow.

Insights on the un- and under-banked from a financial services marketing agency

American Banker recently explored available research on people who rely upon non-bank, alternative financial services. With their research, they also offered some suggestions that banks could use for product and fintech marketing.

People who don’t use banks still spend plenty of money on financial services

According to the FDIC, alternative financial services can include payday loans, prepaid debit cards, onsite financing for cars, rent-to-own deals, check cashing or money order counters, P2P loans, and more. They say that more than 13,000 of these alternative financial businesses operate in the United States.

For some examples, the FDIC provided these estimates about common bank alternatives:

  • They charge fees to cash at least $58 billion in checks each year.
  • They sell at least $17.6 billion in money orders.
  • They process over 58 million bill-pay transactions.
  • They also sell hundreds of billions worth of pre-paid debit cards.

As just one example, people who got checks cashed at a check cashing service had an average check value of about $400 and typically paid over three percent of that to get their money. In other words, they had to pay about $12 to get their modest checks cashed. They also pay for such other services as money orders, paying bills, and funding prepaid debit cards.

The un- and under-banked have various reasons to use alternative financial services

People who rely upon banks a lot, use them a little, or avoid them entirely have many of the same financial requirements. They need a way to save and access money, pay bills, and sometimes, get loans. People who understand and use banking services frequently would probably say that their bank provides them with the best solution. So, why do so many other people avoid banks entirely?

According to American Banker, over half of the unbanked don’t believe they have enough money to use a bank. A smaller percentage say that banks don’t keep convenient hours or lack services that they need. Others don’t believe that banks can serve them because they have a lower income and perhaps, credit challenges.

Also, almost 30 percent of the people who used to have a bank said that they closed the account because they lost their source of income. As an example, some banks waive fees when customers have paychecks deposited directly from an employer or maintain a minimum balance. When their direct deposit ended or funds got low, the unemployed people didn’t want to incur extra fees.

As a note, American Banker also found that these populations tended to have greater percentages of unbanked and underbanked households:

  • Low income or unemployed people
  • Young families
  • Some ethnic groups

How to Improve digital marketing for financial services

A basic checking account at a bank already includes many of the services that the unbanked pay for from alternative financial services. A bank account can also provide a more convenient option.

For some fintech marketing examples:

  • Many banks even have apps that let people deposit their checks by phone and pay bills. They have ATMs, debit cards, and often, offer credit cards to customers.
  • Typically, banks will also provide money orders to account holders without an extra charge. They also offer the ability to write checks or use debit cards and even with modest credit, apply for credit cards and loans.

People who understand and frequently use banks would probably say that their financial institution offers them lower costs and more convenience than many alternatives. In general, even people who don’t use banks have mobile phones that they could use to take advantage of mobile and phone banking services.

A bank marketing agency might suggest some tactics to help banks reach the unbanked by capitalizing upon the resources they already offer. Some examples include:

  • Look for ways to maintain ties with people who have had changes in economic status: As an example, some bankers have suggested waiving fees for people who use their accounts to pay bills, even if they don’t have direct deposit or a specified minimum balance. In other cases, banks might encourage the use of the most efficient methods to get services, like ATM, phone, or electronic banking by limiting the number of more expensive services each month for basic accounts.
  • Promote mobile banking: Banks should engage in some fintech marketing to show how such mobile features as text alerts, balance checks, scanned check deposits, and even bill paying can help save time and manage accounts better.
  • Promote banking services as better solutions than bank alternatives: As an example, compare spending $12 to cash a check to simply depositing the check in a bank ATM and getting cash without having to pay. Perhaps, banks could also consider offering small loans at reasonable interest rates, even for customers with some credit challenges, that can serve as a better choice than payday loans.

Mostly, people with bank accounts generally enjoy more convenience and lower fees than the unbanked do. Banks can work with a financial services marketing agency to find the unbanked and underbanked and clearly demonstrate that the obstacles to dealing with banks are more a perception than a reality — and how banks provide better solutions.

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COVID-19 User Behavior and the Impact on Financial Marketing

After recent increases in mobile and online banking, financial marketing should now focus on an adjusted message and technology in these changing times.

The COVID-19 pandemic spread quickly and left a grave impact on worldwide economies and societies in its wake. As part of the fallout, paid search behaviors have also shifted abruptly and dramatically. Some industries have struggled because of this; however, the banking and financial industry can also take advantage of new opportunities. Look at some important changes to PPC for financial services and bank marketing.

COVID-19 behavior changes to PPC for financial services and banks

Of course, the financial and banking industry includes a variety of services and types of companies. As you might expect, paid advertising campaign strategies could vary with the kind of business impacted. To learn how to adjust to behavior changes for PPC for financial services, it’s important to consider a few different aspects of the way customers and businesses have changed.

Financial and bank marketing paid search in general

The WordStream platform provides keyword and other paid advertising services to companies. Thus, they have a long history of monitoring paid search behavior for all kinds of industries over the course of several years. According to WordStream, the financial and banking industry has historically competed for some of the priciest keywords and phrases. Unlike other industries, PPC for financial services may have gotten somewhat easier during the pandemic.

For instance, these are WordStream figures for coronavirus-related changes to the effectiveness and cost of financial keywords:

  • Average CTR: Average click-through ratios have increased 23 percent.
  • Average CVR: Average conversion ratios have increased one percent.
  • Average CPC: Average cost-per-clicks have decreased 27 percent.

As you can see, conversion ratios have not changed much. Even so, financial and bank marketing can benefit from significantly improved CTRs and lower bids. WordStream did not provide any specific keywords, but they did say that less-competitive PPC advertising has actually helped relieved some of the pressure on an extremely competitive industry.

At the same time, they did note that users have shifted towards looking for more experienced assistance with their finances. During a time when many banks and other kinds of finance companies have reacted to social distancing measures by promoting their online services, a bank marketing agency might consider shifting at least some of the budget to helping consumers find live, personalized financial assistance, even if they switch to accessing it by phone instead of by visiting an office or branch bank.

COVID-19 social responsibility ads

Of course, the pandemic has also generated plenty of coronavirus-related searches for all sorts of businesses, including financial ones. Since the virus spreads easily, any threat to local employees also poses a potential threat to everybody around them. During this crisis, people certainly want to know how companies have reacted to the crisis in order to protect the health of their employees and customers.

As one example, BBVA has launched a campaign to let customers know what measures they’re taking to keep people safe. According to the bank’s website, they use paid search, but mostly on social media and not major search engines. Besides using online ads, they also promoted this campaign on TV and radio.

As part of this #StayAtHome advertising campaign: 

  • BBVA has also encouraged customers to make use of their website and app before visiting a branch.
  • In addition, they let people know that most of their branches would limit access to their drive-through windows and ATM machines.
  • They told customers that they have left a few branches open but reduced hours. Typically, they chose to keep branches open that didn’t have drive-through banking or a nearby branch with this service.

In summary, the bank has recognized that some customers may feel inconvenienced by limited access to the bank’s physical branches. In turn, BBVA has explained that they’ve taken these steps to help protect people’s health. They have also let people know that they can find alternative ways to get most of the services that they need.

Just as important, BBVA has also introduced some services to help customers with coronavirus-related financial issues. These include special loan programs, refunds, fee waivers, and extensions or deferments on payments for some of their loans. Thus, they’ve let customers know that they understand the pandemic could have negatively impacted them and want to help. Naturally, they’re using this advertising campaign to promote these new services too.

The CMO of BBVA, Enrique Cornish, says that they want to tell people about the work they’ve done to respond to the coronavirus crisis. Mostly, underscoring the point of these ads, they want to send the message that they’re working to cope with the crisis in the best way they can and are here to help.

How the financial industry can benefit from COVID-19 changes to financial and bank marketing

Plenty of industry analysts have noticed the sudden spike in eCommerce use since the outbreak began. While online shopping had steadily grown more popular over time, the coronavirus crisis has sparked a rapid boom. Similarly, bank customers have grown more accepting of online services over time and even more so since the crisis started.

The Financial Brand, one finance and bank advertising agency, believes this change to customer behavior will remain permanent, just as other analysts predict that consumers will keep using eCommerce more after the crisis ends. They published these results from a recent J.D. Powers survey on banking trends:

  • About one in three banking customers plan to rely upon online services after the crisis. The analysts expect to see this number rise even more as the pandemic runs its course.
  • Banking customers appear most interested in P2P payments and online or mobile check depositing.
  • Acceptance of online and mobile banking services has increased more with younger adults than older ones.
  • People who have already used online banking appear more willing to try mobile apps than people who have only ever visited branches.
  • Customers of the largest banks appear more satisfied with their online and mobile banking experiences than customers of midsize banks.

Overall, banks that can promote their excellent alternatives to physical banks can benefit from these changes to consumer behavior. Customers may find banking websites and apps convenient because they’re available 24/7 and don’t require leaving home. Also, banks may have a chance to save money because these online alternatives cost less than keeping branches and phone banks fully staffed.

Using bank marketing to overcome COVID-19 obstacles

It’s obvious that the coronavirus pandemic has sped up digital transformation in the financial and banking industry. Still, as one industry analyst ironically commented about the shift to eCommerce, in some cases the digital transformation wasn’t completely ready for the digital transformation. Of course, this abrupt shift away from physical branches has generated problems for both customers and banks. Besides, financial companies did not just have the chance to offer digital services as an alternative; they also abruptly needed to limit access to traditional phone and in-person banking.

For example, almost 30 percent of customers surveyed said they’d had more problems trying to get assistance over the phone. As might be expected, about 40 percent of respondents said they’d had trouble finding an open branch when they needed to. Older and less tech-savvy people will take longer to adjust to a new way of banking than younger ones or people who already made a habit out of banking online.

In any case, user behavior has abruptly changed to embrace more online and mobile services. Analysts expect the trend in the future. On the other hand, customers did express less satisfaction with internet banking from midsize banks than large ones. Other areas of banking impacted by the coronavirus might have included longer wait times on phones and more trouble finding open branches.

Overall, more people expected to rely on mobile and online banking more and less upon physical branches. Still, banks and finance companies that hope to benefit from advertising their internet or phone services to replace physical branches need to make certain that these offerings can perform well enough to please their customers. They may also need to invest some extra resources to help some of their customers adjust to the change and understand why its happening.

Making the most of PPC for financial services and banks during and after COVID-19

Like other industries, the financial industry had already begun to shift towards more online access and away from in-person contact. Many customers had already discovered the convenience of having ways to check balances, pay bills, transfer funds, and deposit checks without needing to travel. On the other hand, banks could work more efficiently by shifting services and customers online instead of always having them visit or call a person. Right now, during the outbreak, financial companies may also enjoy the advantage of lower bids and more clicks on their paid ads. Even after this current crisis, consumer behavior trends will probably have changed permanently.

Still, the previous digital transformation had gradually occurred over the span of years and not weeks, so every facet of the industry and all customers were not completely prepared. Taking a page from some of the largest banks and finance companies, it’s a good idea to use paid advertising to respond to customer’s changing behavior and to underscore your primary message.

As demonstrated by some changes to paid search behavior, if customers need experienced financial assistance, financial services companies still need to create and promote a mechanism to provide that. In general, banks can do well by promoting their websites and mobile apps to serve the routine needs of their customers. On the other hand, they should also invest in making sure they have the features and technology to provide great service after customers respond to their ads.

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Better Content Marketing for the Financial Services Industry

Banks and other financial services need an edge to stay competitive. Here’s why content marketing can help them better connect with prospective customers.

Banks and credit unions are hardly celebrated for their innovation or mastery of digital tools. There’s a reason for this: The industry is by nature conservative, and it is also constrained by regulations. This is why the banking sector has been relatively behind on the digitalization curve.

Yet this also provides an opening for financial services enterprises — as long as they are willing to adopt new approaches that are aligned with changing consumer preferences. One recent example is the Capital One Cafe, a coffeehouse/bank location hybrid that allows customers to enjoy meet-ups and drink coffee while conducting basic banking services. This “bank barista” concept was designed to target the millennial market and make banking an enjoyable experience, rather than routine drudgery.

With banking services increasingly migrating online, however, banks and credit unions also need to harness the full potential of digital tools. Content marketing, specifically, is one of the most impactful things a bank can do to modernize its digital strategy and generate new business.

Let’s take a closer look at why this approach pays dividends, and how partnering with the right content marketing agency will help deliver results.

Developing a content marketing strategy that works

Financial marketers understand the value of strong content marketing. A recent Brandpoint survey showed that financial marketers view content marketing as an essential tactic for generating brand awareness and engaging with customers. That same survey, however, showed that half of financial marketers struggle with content creation and staying current with the latest techniques.

Other common problems include:

  • Insufficient resources to create top content
  • Inability to determine ROI or effectiveness of the content 
  • Poorly defined strategy
  • Difficulty managing a multi-channel approach with consistency
  • Lack of budget
  • Lack of content marketing expertise
  • Leadership not buying in

That financial services firms struggle with content marketing is not surprising. If you asked most people about memorable marketing, banks would certainly not top the list. Some financial services firms, however, know how to do content marketing correctly. Here are two examples:

  • Citibank is highly-regarded for its brand awareness initiatives — and for good reason. The company’s sponsorship with New York’s popular Citibike program means that 10 million-plus New Yorkers can’t rent a bike without thinking about a bank. Citibank also uses content marketing and sponsorships with major artists as part of its Citi Entertainment program for customers. In both cases, Citibank attaches its name to something that consumers love (bike riding, concerts) — a significant boost, considering most bank brands have little inherent cachet. It’s an example of savvy bank marketing.
  • Deloitte is best known for being a global consultancy and financial advisory operation. Not exactly the type of enterprise to give retail consumers warm and fuzzy feelings. Yet every year Deloitte issues a “Back to School” survey that uses clever, data-rich visuals to help consumer optimize their purchasing habits. It’s not related to Deloitte’s core business, but it is a smart piece of content marketing that improves brand awareness and builds brand trust. Parents engaged with this campaign identify Deloitte as a company that helps them solve a perennial problem.

So now that we’ve discussed some challenges and seen some strong examples, let’s talk about what financial services firms can do to jumpstart their content marketing efforts and start building brand awareness and loyalty.

Actionable advice for your financial content marketing strategy

Companies that generate exceptional ROI from their content marketing efforts tend to have some commonalities. A recent Content Marketing Institute research survey investigated the factors shared by firms that are especially successful in this regard. According to this research, the four elements that separate winners from losers are:

  • Having a documented content marketing strategy. 65% of firms who report being successful in content marketing have such as a strategy, while only 14% of unsuccessful firms have one.
  • Measuring the ROI of content marketing initiatives. 72% of successful firms do this, while only 22% of unsuccessful firms measure ROI.
  • Proficiency with the latest content marketing technology. 67% of successful firms report proficiency, while only 7% of unsuccessful firms do.
  • Using personas for content marketing campaigns. 77% of successful firms use personas, while only 36% of unsuccessful firms use them.

By implementing or improving these four elements, you can lay the groundwork for a high-performing content marketing strategy. Not every financial institution or marketer has the experience of savvy to get the most out of this approach, however. In these cases, it makes sense to partner with a leading content creation agency.

Finding the right inbound marketing agency

If you’re in need of SEO marketing, content marketing or any other digital marketing service, we encourage you to contact Bigeye. We have the technical skill and domain expertise to help financial institutions gain immediate traction with high-performing digital marketing campaigns.

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How to Create Environmental Branding for a Bank

If you’re not embracing environmental branding for your financial institution, you’re missing out on a key piece of the overall marketing puzzle.

Companies in the retail sector have long leveraged the power of the branded environment (incorporating an organization’s brand and the distinctive characteristics of that brand into the interior and/or exterior design of its brick-and-mortar stores). Whether it means liberally integrating the retailer’s name into physical location signage or imbuing in-store displays with the unique charm and appeal of the retailer’s brand identity, environmental branding can work wonders when it comes to driving customer loyalty and on-site sales.

The banking industry, however, has traditionally lagged far behind top retailers when it comes to leveraging the power of branded environments. This makes perfect sense considering the history of banks in the United States and elsewhere. In most communities, there was only one bank in operation. Effective branding and marketing operations in general were completely unnecessary. Customers banked with a specific organization because it was their only option, not because they preferred it over any available alternatives.

Now increasingly savvy about branding practices, the financial institutions of today are finally beginning to reverse this trend, realizing that effective branding is absolutely essential if they want to get a leg up on the competition in the modern marketplace. The creation and maintenance of branded environments should be an absolutely essential component of any banking organization’s greater marketing efforts.

If you are looking for ways to develop effective branded environments for your bank location(s), you will want to employ a marketing agency with the established expertise to address the specific wants and needs of your particular institution. The following four guidelines can get you headed in the right direction. 

1. Concentrate on relationship building in the lobby area

When it comes to building a new bank branch or remodeling an existing bank location, the design masterminds at HTG Architects suggest rethinking the fundamental purpose of your lobby area. As HTG puts it, “Co-branding can change your space from “transaction-based” to “relationship-based.” And in today’s banking world, this shift can make all the difference.”

In addition to incorporating ample on-brand elements into your lobby, HTG suggests reducing the size of banking transaction areas if it can make lobby space feel more comfortable and inviting.

2. Reflect evolving technology

Different banking organizations will inevitably target different consumer demographics, but the vast majority of todays’ customer base will respond favorably to technological innovation. This is particularly true of consumers in the modern banking sector, who tend to expect the companies with which they partner to be on the cutting edge in terms of state-of-the-art financial operations and security measures.

In order to reinforce strong technological ties, the physical design of brick-and-mortar bank branches must reflect high-tech engagement in a variety of ways. This might mean the inclusion of advanced ATM machines and smart kiosks or it might mean simply crafting on-site sign imagery and typography that is compatible with technological themes.

3. Emphasize convenience and public responsibility

Smart financial institutions will also design their buildings to not only deliver optimum customer convenience, but reinforce their commitment to public service through effective on-site messaging. Two great examples of this emphasis on respect and responsibility are ADA compliance and environmental sustainability.

All bank locations should go far beyond the mandated regulations of the Americans with Disabilities Act (ADA) to ensure that all customers have equal access to banking processes regardless of physical or mental disability. Furthermore, bank locations should offer the latest in recycling amenities, responsible resourcing, paperless technology, and other green modalities. Remember, your physical location speaks volumes about your company’s priorities and values.

4. Consider environmental co-branding

If you really want to boost consumer convenience while engendering considerable lobby cross-traffic, you may want to look into partnering with a well-known brand from another business sector and welcoming that partner into the physical space of your bank branch(es). While traditional environmental co-branding partnerships in the banking sector have included insurance agencies, accountants, and title companies, more and more banks are incorporating comfort-inducing retail organizations such as coffee shops into their lobby areas.

For more information

To guide them through the considerable intricacies of the environmental branding process, wise companies seek out the assistance of highly trained and specialized marketing professionals. An environmental branding agency that is both forward thinking and rooted in current best practices, Bigeye can answer any questions that you might have about your bank’s practical environmental branding options.

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What Cryptocurrency Means for the Conventional Banking Sector

Bitcoin is disrupting the banking sector by creating enormous interest among institutional investors, creating a need for smart FinTech strategy for brands.

2018 was a tough year in the cryptocurrency space, as the value of Bitcoin tumbled from $20,000 to below $4,000. 2019, however, has been a different story, with the market rebounding and cryptocurrencies becoming a core part of institutional FinTech strategy and banking strategy.

So what does the future hold for Bitcoin and the financial sector? 

How Bitcoin went from novelty to banking industry disruptor

Bitcoin, the world’s most popular digital currency, began life as a hobbyist pursuit. Created roughly a decade ago by the anonymous developer Satoshi Nakamoto, Bitcoin was designed to be peer-to-peer digital cash. People could send it to each other with no bank or third party needed to validate the transaction.

That’s because Bitcoin transactions are validated not by a bank, but by a technology called blockchain. When one person sends Bitcoin to another, the transaction is confirmed by a miner. This miner isn’t a person with a pickaxe and persistent case of black lung, but rather someone who uses computing power. When Bitcoin transactions are made, miners use powerful computers to compete with each other to solve complex cryptographic puzzles for a small transaction fee. Whomever solves the puzzle first validates the transaction, which is then recorded on the blockchain – a public ledger that can’t be changed. 

That’s Bitcoin in a nutshell – and you can see why the technology is so transformative. Instead of waiting several days to have a bank clear a transaction, a Bitcoin transaction is completed within ten minutes, in most cases. Other cryptocurrencies with a higher degree of centralized control can confirm transactions almost instantly.

Here’s the irony: Bitcoin was created and later developed by a band of misfit programmers who were entirely outside the financial system. Yet today, cryptocurrency adoption is being pushed forward by the financial services, marketing agencies, and companies that Bitcoin promised to make obsolete.

Why institutional adoption is driving market growth

Bitcoin’s price rebound in 2019 has been driven, in part, by the movement of institutional money into the cryptocurrency space. A few years ago, most legacy financial firms were bearish on cryptocurrencies -Jamie Dimon of JPMorgan Chase famously called Bitcoin a “fraud” that governments “would crush.”

Today, Dimon has reversed his position and is pushing his firm headlong into the space. JPMorgan Chase has launched their own cryptocurrency. Facebook, too, recently announced plans for their own cryptocurrency, while Google and Amazon both have significant partnerships with cryptocurrency projects.

Why the abrupt about face? As with any radical new technology, skepticism abounds early – “magic Internet money” created by a person named “Satoshi Nakamoto” seems almost too far-fetched to believe. Then, once people grasped the fundamental innovation Bitcoin offered, the financial services sector began to view cryptocurrencies not as a joke, but as an existential competitor.

And that’s where we are today. Cryptocurrencies hold the potential to radically transform how the banking sector operates. Using the traditional banking system, the fastest way to get $10,000 from New York to California is to fly it in a plane. In a 21st century hyperconnected world, that seems absurd.

Cryptocurrencies makes such transactions instant, as there is no need to wait for third parties to validate that the money being transferred is actually there. That’s the reason cryptocurrencies have become a core part of banking FinTech strategy – and why we’ve likely only seen the very earliest stages of what could be the most significant technological development since the Internet.

The takeaway

Brands in need of FinTech marketing services should consider one question: Does my FinTech marketing agency have the necessary domain knowledge to provide us with truly informed, high-level digital marketing for financial services?

At Bigeye, we understand FinTech strategy and cryptocurrency on a much deeper level than most financial services marketing agencies. When it’s time for your next campaign, we urge you to contact us and find out why Bigeye is so much better.

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