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LIFESTYLE BRANDING FOR FINANCIAL SERVICES

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In order to maximize their growth and remain relevant in the new era, banks and fintechs are responding to the evolving needs of the younger generation by drawing inspiration from the achievements of other well-known companies.

Global brands have been successfully connecting with customers in recent years to the point that they have taken on a life of their own. Apple’s brand loyalty hit an all-time high of 92 percent last year, as the tech giant places a strong emphasis on providing distinctive consumer experiences and keeping its promise of ongoing innovation. As a result, like-minded groups of individuals identify with the company’s purpose and vision and inevitably grow to be powerful supporters. Similar to how technology companies have previously benefited from this development, financial services may leverage this positive word-of-mouth as another type of marketing to develop, interact, and grow from their own evangelical community.

With younger generations favouring self-expression and paying attention to influencer suggestions, such as the digital native Gen Z, lifestyle branding has been on the rise. The pre-social media period was characterized by TV commercials and advertising, but the new generation’s purchasing habits are being shaped by social media influencers, whose industry is expected to expand from £1.7 billion in 2016 to a startling $16.4 billion this year. It may not come as a surprise that the financial sector is attempting to capitalize on this trend. Even branding guru Apple entered this market by launching a unique titanium credit card that lets customers benefit from originality in their lives. What steps do banks and fintech take to enter the lifestyle-based banking market, keeping the customer experience at the forefront of these strategies?

Design is key

There are many examples of effective strategies that place the client first and center, and it is crucial that banks and fintech concentrate on a holistic, engaged approach that enhances the customer experience. One example of an app-based challenger bank seeking to disrupt the established banking model is Monzo, which lays a strong emphasis on the needs of its clients. Its extremely colorful bank card gives it a standout appearance. Hugo Cornejo, the bank’s head of design, said this was done on purpose to attract notice and spark conversation when used to make transactions.

This marketing approach shows that the company has a thorough understanding of the target market. Banks and fintech will be able to choose the appropriate design components for their bank cards, which serve as the physical representation of the lifestyles they encourage, by having a thorough understanding of customer motivations.

This is only one example of how a card might enhance a person’s way of life. Customers who desire to support environmental projects may be attracted by the design’s exclusivity, creativity, or sustainable practices. For instance, a metal card can withstand fast-paced lifestyles because of its durability and an ultra-sleek design. A 2020 survey found that 73 percent of Gen Zs were willing to pay more for sustainable items. Eco-cards made of 100 percent recycled, ocean-sourced, or bio-plastics can also appeal to environmentally conscious consumers. Another study found that over 90% of Gen X consumers are willing to pay an additional 10% for products that are more environmentally friendly.

Consumer communication is essential in addition to design, and social media platforms are now an essential tool for engaging younger clients. As an illustration, prominent influencer Charli D’Amelio used TikTok to promote the debut of the digital US bank Step, which was backed by stars like the rapper Nas. Utilizing social media and influencer marketing will assist appeal to the interests of younger consumers who are not interested in money.

Digital applications will enable successful online experiences as part of a combined “phygital” approach, where digital and physical experiences are brought together, along with impactful and sustainable bankcards that can also be personalized to reflect the tastes and personal interests of the consumer. As more customers choose between a physical or digital touchpoint, with the banking located where the customer is, this will become increasingly important.

Embracing a holistic approach

Understanding their customers in-depth and improving the user experience through a more holistic approach are the keys to banks building a successful lifestyle brand. The most successful banks know where their customers “hang out” online, speak their language, and understand their objectives in order to provide them with individualized and distinctive goods and services that speak to them and are instantly recognizable. Utilizing the data at hand effectively could undoubtedly aid in gaining insightful knowledge about client behaviour, motives, and interests. The following development of a solid brand, the utilization of niche products, and the employment of pertinent personalities will put banks and fintech in a far better position to draw in new clients and guarantee their loyalty and advocacy going ahead.

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