Current VP Marketing talks about building trust with new brand
Digital trust is the trust that consumers place in the digital channels of their banks. For neobank marketing managers, the first step in building newcomer confidence in the relative market is to increase brand awareness. To this end, neobanks like Running highlight how they differ from the big banks in their advertising campaigns. Current, for example, ran campaigns in New York with the slogan “What do you think we are, a bank?” ”
Insider Intelligence spoke with Adam Hadi, Vice President of Marketing at Current, about how marketing a neobank differs from promoting a traditional bank, how much of a “loyalty” to bank customers can be. double-edged sword ”and how digital was one. of Current’s benefits during the pandemic.
The following has been edited for brevity and clarity.
II: What marketing challenges have you faced in the past year and how have these affected your priorities?
AH: Our challenges weren’t so much related to the pandemic. The pandemic has actually highlighted many advantages as a digital-only bank. During the lockdown, there wasn’t much need for bank branches, in-person banking, and all of the things associated with traditional banks.
As a challenger who has only been in the banking space for a few years, building trust is a huge challenge. Traditional brands like Wells Fargo, Citibank, and chase away have been around for a long time, some for 120 years or more. They have a bad reputation, but there is a sense of security that comes with banking with them. A new brand like us that’s just stepped into space and asking a client who lives on paycheck to paycheck to hand us their next paycheck – that’s a big request, and that requires a high level of trust. Gaining that trust is a challenge that we are always trying to overcome.
II: Fifty percent of your customers are giving you first-time orders in a bank account. Was this a customer segment that you were specifically targeting, or did it happen organically?
AH: It’s intentional. Banking is a very high retention product. You probably have your bank longer than your iPhone, right? It is also good for us to acquire clients when we are their “first date” account. And we have an advantage over the younger generations.
But this high retention in the banking sector is a bit of a double-edged sword. It also means that you have a high bar for someone to change, and it is costly.
On the other hand, however, traditional banks have made it easier to select all customers who do not fit their business model. The clients we select from Bank of America and Wells Fargo are the ones they actively disconnect. They charge these customers what we call a “nuisance fee”. So that sets us up pretty well as well.
Read the full Q&A with Adam Hadi here. For a deeper dive into the thoughts of marketing directors at 10 of the most innovative banks, credit unions, and neobanks in the United States and Canada, read “The Banking CMO report: 10 leaders on priorities, challenges and opportunities.”