Financial Marketing

Thoughts from the Absaroka Mountains on Financial Marketing

Personal finance seems to be a common theme these days - the category is instructive to see how differentiation works to carve specific niches among individuals working with their money. The positioning of The Mint takes the approach that you need to access all your information from one place; WalletPop takes a news you can use approach; Quicken Online leverages its heritage with TurboTax and Finicity takes a budgeting approach. (NB: Finicity is a client). So, depending on the primary need of the audience there is a different product available. A review can be found here.
Product innovation isn't coming from banks; its coming from the usual place - startups; for a whirlwind tour of 20+ startups see the demos at Finovate.
Credit scores, once an abstract, obscure and secret number, is often the barometer of an individual's value from a financial marketing point of view. Similar to redlining the credit score is the cutoff where either money isn't available or gets very expensive. The days of adverting 'no matter what your credit score' are dwindling fast. The cutoff for a mortgage is currently in the 720-750 range; up substantially over the last year. Approx. 60% of US households no longer qualify for a mortgage. Like political buttons, they're a badge of honor.
Slideshare, one of the best places to find information delivered in presentation form, is currently running a contest on 'explaining the credit crunch in 30 slides'. It makes for both interesting reading and a rich (no pun intended) source of messaging ideas. Wish politicians explained it so well. Most downloaded this week: Sequoia Capital's view of things for startups.
Education, an industry typically counter-cyclical, might see admissions slow since the availability of funds has dwindled and the rules for marketing have tightened. There is now a Marketing Code for Student Lenders adopted by the state of New York; this follows the investigation they did last year of financial aid offices and student loan companies. Credit card marketers, who find campus activity productive, are also under scrutiny.
Since student loans might increase a person's debt-income ratio due to the terms of payoff (and the fact they can't generally be discharged in bankruptcy) the financial benefit may not be as strong as once portrayed. Expect to see more 'lifetime calculators' and emphasis on return on investment as opposed to a simple 'earn more' message.
The drop financial services marketing is leading the decline in image-based online marketing according to Marketing Charts. And this was for the first half of 2008.
There is an exclusive social network for CxOs of financial service companies: Meet The Boss. Complete with secure video, email and IM.