Trust was once a byproduct of banking but now it has become an integral part of how Banks market and price their products. The change in Trust for BFSI (Banks, Financial Services, and Insurance) brands is simple and has greatly changed how customers view Banking. Customers are no longer only purchasing Credit, Convenience, Rate, etc but now are purchasing Confidence in Banking. Here is an overview of the types of trust Banks are marketing and selling as a part of their overall strategy. Marketers should think of ‘Trust’ as one of the more tangible products that generate money for the Banking Industries.
Why Trust Matters?
Industry research confirms that banks that promote customer loyalty grow significantly faster than banks that do not promote customer loyalty. According to this research, banks with the highest level of customer loyalty (the top 20% of banks based on their level of customer loyalty) have grown their revenue at approximately 1.7 times the rate of banks in the bottom 20% of the customer loyalty measurement. Increasing a bank’s customer loyalty correlates to a bank’s customers owning more products and spending more money on that bank their “wallet share”. Customers’ advocacy of a bank creates top-line growth in measurable terms and creates a basis for increasing a bank’s branding.
In addition, there is an inconsistency in the level of trust displayed in banks around the world. Global surveys have consistently ranked “business” (banks included) as the most trusted type of institution of any institution. However, banks have improved their trust scores from year to year and represent a real opportunity for banks to effectively communicate to their customers the concept of trust and build their business on it.
Additionally, the importance of security and transparency is the basis for trust: many customers believe that communication from banks regarding their cybersecurity posture is poor – therefore trust must be demonstrated (i.e., proof of trust) rather than assumed (i.e., trust must exist before you can sell).
What does “trust as a product” actually looks like?
Turning trust into a product means to take the implicit assurance of trust (i.e., you have trusted this bank based on your past experience) and turn it into a feature which you present, sell, and iterate upon, to get more customers to buy your product.
This includes:
- Observable guarantees – Similar to a warranty, providing customers with an assurance (e.g., guaranteed resolution of disputes; guaranteed fraud protection) of their ability to recover their deposits if wrongfully obtained.
- Transparent proof – Publishing summaries of audits, certifications from third-party organizations indicating security of operations, and explainers regarding data lineage. Customers desire more than just: “you’re secure,” they prefer seeing evidence that they can understand.
- Humanized automation – Creating visibility around automated processes by providing details about when an algorithm recommended a decision, who has reviewed it, and how to contest or opt-out of an algorithmic recommendation. This addresses concerns regarding the “black box” nature of personalization and AI-based advice.
- User experience contracts – Creating measurable user experience via Trust and Permission through Session-based User Permission Controls, Contextual Consent Flows, and Real-time User Alerts that explain “Why we did x”. User Experience contractually binds Trust.
- Trust Bundles – Bundles of product options based upon performance level with higher-valued Trust Bundles offering faster possible Resolution of Fraud, Dedicated Account Managers, Advanced Identity Protection Tools, and Additional Transparency Reporting options. Customers can purchase Higher Confidence, just as they would purchase Higher Yield or Concierge Level Service.
Marketing trust without moralizing
Selling Trust with Sensitivity – The focus should not be on Demarcation between Competitors, nor should it include Scaring the Customer to switch business. Moving forward is about Clear and Credible Positioning:
- Use Proof, not Promises; Use Short Case Study Examples, Anonymous Breach Resolution Timelines, and Testimonials providing Evidence of Bank’s Response when disasters occurred.
- Use Performance Metrics to Show the Benefits; if Advocates hold 17% more Products in their Wallets and allocate dramatically more of their Wealth into Trust, use Numbers to Convert Suspicions into Opportunity.
- Make employees ambassadors – Research indicates that employees typically have more confidence in their organization than any external source. By making employees authentic, compliant “brand ambassadors,” they can enhance the credibility of the organization to prospects and customers.
- Be Specific In Communications – Instead of making vague statements like “We value your security,” you should provide concrete examples. For example, state that “We resolve 95% of fraud claims in 14 days” and/or “Your data is Tokenized – we never store your data in a raw format”.
Product & growth playbook for trust
Operationalizing Trust Across the Integrated Business Units: Product, Technology and Marketing: The following are some examples of the cross-functional work that can be done to operationalize Trust.
- Define Trust-Related KPIs: Examples could include; Advocacy Score, Net Promoter Score for Security Communications, Breach Response Times, and Percentage of Customers that Opt-In To Transparency In Data Sharing (Consent Rates).
- Embed Proof Into Your Onboarding Process: The first time a user engages with your Organization, they should be able to learn about how you handle data. You could do this by creating quick videos on how data is handled, one-click access to a Privacy Dashboard, and having an opportunity to take a security tour of your facilities to quickly establish trust.
- Invest In Third-Party Attestations: By having a third party conduct independent assessments of our internal controls including; Independent Assessment Audits, SOC/ISO Reports, and Open-source Cryptographic Proofs, we are able to convert Internal Controls into Marketing Assets.
- Establish Company-Level Accountability: Establishing a designated Trust Officer (or Chief Trust Officer), making their public statements available to the public through Annual Trust Reports, creates an Enterprise-Level Narrative around Trust, not just product marketing.
- Measuring and marketing your outcomes. Metrics on trust should be connected to commercial KPIs and used as messaging in marketing collateral Examples include increases in customer retention, cross-sell rates from advocates, and time-to-resolution metrics.
Pitfalls to Avoid
- Do not use fear to manipulate. Fear-based messaging about the competition makes the industry look bad as customers prepare to distrust everything.
- Do not brag about “bravery” in defensibility. Bragging about security without substance is even worse than saying nothing; transparency must have substance.
- Do not think of trust as only PR. Trust must be embedded into a product’s service delivery; there are gaps in operations that cannot be dressed up with marketing.
