News: Brand Innovators 2023 Outlook: Financial Services

      Comments Off on News: Brand Innovators 2023 Outlook: Financial Services

Rising interest rates, high prices, a volatile stock market and a potential recession create an unstable environment for financial services. Brands that can help alleviate consumer uncertainty will be better positioned to thrive in this environment.

Looking ahead to 2023, expect financial services brands to focus on delivering trusted experiences that offer stability.

“The category is going to be very tough for the foreseeable future,” says Josh Palau, SVP, Growth Marketing and Media at Lending Tree. “If rates continue to rise, there is no doubt that some people will fall back. It’s going to be volatile over the next six to eight months to determine where things work out and what consumers are comfortable doing. How that plays out depends on how you maintain your brand positioning. Building an actual brand that delivers an amazing experience that makes people want to keep coming back and referring their friends is what will win.

Jill Cress, Marketing Director of H&R Block suggests that in this environment, brands should focus on creating value for consumers. “Just think about the headwinds of what’s happening with inflation and people worrying about what that means is something we want to think about in terms of the value we can deliver,” Cress says.

She also expects the gig economy to grow next year and says H&R Block has resources to support these creators. “The gig economy will continue to be pervasive,” adds Cress. “People choose this lifestyle because it gives them flexibility. This allows them to maximize their time and income on their own terms. Brands will need to think about what this means to reach consumers. How do they see their relationship to money and spending in retail? We will see compression in the omnichannel and understanding the consumer journey will be extremely important. »

Consumer payment habits will be impacted by economic downturn, says Lily Varon, analyst at Forrester. “As consumers begin to really feel the effect of the impending state of the economy, we will see a change in payment habits, including the return of cash,” she said. writing. “When the cash runs out, consumers will rush to “buy now, pay later” options and back to credit cards.

David Sandstrom, Marketing Director buy now, pay later firm Klarna says, “Consumer expectations and demands for how they buy and pay will continue to rise as the New Year approaches. They want flexibility, convenience and confidence in the services that Whether they prefer to pay now, pay later, or pay over time, companies that allow them to buy with confidence, while saving them time and money will be the most their finances, tracking deliveries, discovering new brands, finding and getting what they need in one place.”

Financial services brands have focused on appealing to younger audiences to maintain their customer base in recent years and expect this to continue in 2023.

“It’s all about Gen Z. Millennials will take a back seat as more companies and brands develop strategies to win with the young Gen Z audience as they reflect to future growth,” says Tia Cummings, Vice President of Marketing at Square. “More attention to the brand objective. This ties into my previous point about Gen Z, because they care a lot about brands with a purpose. But, we also tend to see that during difficult times (i.e. Covid), brands go the extra mile to support their consumers/customers. And as I expect us to be in a recession in 2023, brands that present themselves meaningfully to their consumers/customers will continue to win in the market. Streaming will continue to grow as a media channel. It’s not new, but an ongoing trend that I think will accelerate as companies like Netflix launch an ad-supported model for the first time.