Precision strategies, data-driven insight, and generational fluency are reshaping how financial institutions compete for lasting growth.
Jim, your role at Vericast is pivotal in shaping growth strategies for financial institutions. Can you start by sharing what initially drew you to the field of product and growth marketing, and what excites you most about your current work?
I’ve always enjoyed storytelling – taking complex topics and crafting simple, compelling narratives to help buyers solve problems. In my current role at Vericast, my team gets to help financial institutions (FIs) learn how they can use marketing data intelligence to acquire and retain customers efficiently, which helps these institutions grow and thrive.
With the rising cost of living, deposit growth has become a top priority for banks and credit unions. How do you see institutions balancing the need for immediate deposit increases with the risks associated with “hot money”?
What FIs need to consider when it comes to growing deposits this year, is what will provide them with the longevity they need to make deposit growth successful. While hot money incentives can certainly create an influx of new customers, it’s not an effective retention tactic. Many of the consumers who take these incentives are far more likely to close their accounts and hop to a new FI to capitalize on other incentives as they arise.
Increasing brand awareness and promoting loyalty are critical ways for FIs to create balance here. The stronger the brand recognition an FI has, the less it will need to rely on hot money offers just to get people in the door.
Hyper-personalization will be essential, and FIs will need to dig deeper into data analytics and customer feedback to make the right investments in customer experiences that lead to long-term loyalty. Personalized and impactful engagements with customers will be a major driver for deposit growth, so proper investment needs to be given to efforts outside of hot money incentives.
You emphasize the importance of loyalty over short-term incentives in the banking sector. What strategies do you recommend for banks to build lasting relationships with their customers and reduce reliance on temporary promotional offers?
While short-term promotions can attract new customers, true customer loyalty comes from sustained engagement, trust, and value. By focusing on personalization, seamless experiences, relationship-driven rewards, education, community involvement, and proactive retention, banks can reduce reliance on costly promotions and build long-term, profitable relationships. At Vericast, we empower banks with data-driven marketing solutions that enhance personalization, engagement, and lifetime customer value. The key to loyalty isn’t a one-time incentive – it’s continuous value creation.
Vericast’s Financial Trendwatch report highlights the importance of generational marketing preferences. Could you elaborate on how banks can tailor their marketing efforts to effectively engage different age groups?
What we have seen work effectively is using what we know about generational preferences to drive content and channel strategy. For example, our research shows that Gen Z is digital first and financially cautious. This insight suggest banks should leverage platforms like Instagram and YouTube to deliver financial literacy content, quick tips, and real-life Gen Z financial success stories. Gen Xers like myself, on the other hand, tend to be focused on retirement savings, investments, and financial security. This insight suggests banks can engage this audience by combining high-touch digital experiences with human support to offer personalized investment advice and financial health checkups.
How do you believe social media can be leveraged to attract and retain younger customers, particularly Gen Z, within the banking industry?
Social is huge for sure right now. In our most recent budget survey that we send out to financial marketing leaders, the results clearly identified that social media is a critical tool for attracting and retaining younger customers, particularly Gen Z. For example, banks and credit unions can use interactive Instagram Stories to engage younger people with content like ‘How to Save for Your Dream Vacation’ or promote student-friendly credit building tools that will capture Gen Z’s attention and build loyalty early.
For older generations who might prefer more traditional communication channels, what tactics can financial institutions adopt to ensure they remain engaged and valued?
While you do see Gen X and Baby Boomers using social media, this is not where these age groups are largely looking for financial advice or information. They still value personalized content in the way younger generations do, but through different mediums. They want personalized service and accessibility. For example, dedicated customer service via phone support, in-person consultations, and even direct mail all help to reinforce trust and loyalty with older generations. High-touch communication and engagement is what they value.
To help these demographics feel more comfortable using online services, digital experiences should be user-friendly with clear navigation, larger text options, and accessible customer support. FIs should also offer financial literacy events, both in-person and digital (think webinars) to help foster a sense of community for older age groups while also giving them the insights they want. Follow-up calls after digital interactions or mailed summaries of online transactions can also help bridge the gap between traditional and digital engagement for older generations.
In a landscape where every marketing dollar must count, how can banks ensure they are spending wisely and effectively reaching their target audience?
I can’t say this loud enough: leveraging data-driven insights to target the right audience with personalized messaging across the most effective channels will always be the most effective strategy to invest in. AI-powered analytics support this by helping FIs to accurately segment customers based on behaviors, preferences, and financial needs. This is essential for ensuring campaigns are both relevant and impactful. A balanced mix of digital and traditional marketing—such as personalized email campaigns, targeted social media ads, and in-branch promotions—helps optimize engagement across demographics. I also highly recommend continuous performance tracking and A/B testing to refine strategies in real-time, allowing budgets to be dynamically reallocated to the highest-performing tactics of the moment.
What are some common mistakes financial institutions make when trying to grow their deposit bases, and how can they avoid these pitfalls?
Here’s what I see a lot of:
Customer segmentation is often overlooked. Too many FIs continue to take a one-size-fits-all approach. One of the biggest missed opportunities is tailoring efforts to reach different customer demographics based on the unique and specific preferences of those groups. Data analytics should be at the forefront of an FIs playbook here – use these insights to understand the various financial goals and life stages of your target consumer groups. Once you know what it is that each group needs or is looking for from you, tailoring communication to fit comes more naturally.
There’s still too much reliance on rate-based competition. When FIs focus primarily on competing based on interest rates, they risk losing sight of building long-term customer loyalty. Instead, more importance and focus needs to be placed on offering value-add services like financial education, relationship-based rewards, and seamless digital banking experiences that enhance customer engagement beyond just rates.
Customer experience still isn’t getting the full spotlight it needs. I often see FIs struggling with poor digital interfaces, complicated processes for opening new accounts, and a serious lack of proactive customer communication. Streamlining onboarding processes and investing a bit more into making digital banking options more user-friendly are a strong start. Looking for ways to proactively engage customers with personalized product or service recommendations helps build their trust that you can handle their needs when they have something more urgent.
Lastly, what innovations or trends do you foresee shaping the future of financial marketing, and how is Vericast preparing to meet these changes?
For me, three key trends are shaping the future of financial marketing: AI-driven personalization, data-driven omnichannel strategies, and the rise of embedded finance.
At Vericast, we are meeting these emerging and expanding trends by leaning into hyper-personalization marketing strategies based on real-time customer behavior and working with our customers to build more seamless interactions across digital, social, and traditional touchpoints. We are also focusing on digital channels like social media and streaming services to help FIs engage consumers where they already interact.
A quote or advice from the author: “A data-driven approach is critical for getting financial marketing right. FIs are sitting on a wealth of knowledge about their customers – what’s important to them, their wants and needs, what they’re focused on for their lives right now.”
