The Digital Shift In BFSI Industry Caused By Influencer Marketing
“I think the simplest way to describe this type of marketing is brand advocacy, where a brand partners with whose audiences align with the brand’s business. There are leading voices in the financial services space that help educate, inform and engage a particular niche community of followers or audiences.”- Alana Levine
(CRO and Co-founder, Fintel Connect)
The world is witnessing accelerated growth in the number of social media users. With each passing day, the widespread growth of digitalization has shifted not just the regular public but also brands and businesses towards digital spaces. The latest data shows that there are about 4.48 billion social media users across the globe as of July 2021. This number is equal to almost 57% of the world population. The same study shows that, on average, there are 16 new social media users every second. What does that suggest? Every 9 out of 10 internet users are now active on social media. To whom has this enormous growth been a boon?
With an increased number of people engaging actively on social media, Influencer Marketing has also risen. Influencer Marketing has seen a huge spike over the last few years and is not displaying any signs of a slow down. At present, influencer marketing has taken the front seat in building brand image and increasing the conversion rate for several businesses. According to a survey, 65% of consumers preferred credible content from Influencers in 2018, while in 2019, the number rose to 95%. Brands and businesses have shifted their marketing strategies to digital spaces and are leveraging the growth and the potential of Influencer Marketing to promote their services and products on a large scale.
Lifestyle, Beauty, Health, Fitness, and Travel are some prominent niches that have benefited hugely due to Influencer Marketing. A recent study shows that between 2019 and 2020, the sales for fashion, luxury, and beauty brands have increased by 18%. The number is expected to grow further by the end of this year. Hence, Influencer Marketing has driven brands towards digital transition and has transformed their marketing strategies. However, what about the Finance Industry? Influencer Marketing has caused the BFSI industry also to adopt this digital shift. How has Influencer Marketing shifted the BFSI sector to digital spaces? What benefits await the BFSI industry by positively responding to digital transition? This article shall shed light on the benefits of influencer marketing for the BFSI industry.
How Has Influencer Marketing Caused A Digital Shift For The BFSI Industry?
1. Influencer Marketing Has More Effect Than Print Media
The banking and finance industry is known for its traditional forms of promotions and advertising. For decades, the BFSI industry has relied on conventional marketing techniques like TV commercials and newspaper ads. However, the acceleration of digital transformation has caused the BFSI sector to revisit its operating model. Influencer Marketing has emerged as a new-age reality, reaching more and more audiences than TV and print media. As a result, the BFSI sector too had to adopt a digital transition concerning its marketing methodology.
To enhance conversions, the BFSI sector has to target millennials or the GenZ. They are the future or potential customers. According to a report by eMarketer, 64.2 million people who are from GenZ will stream or download a video to their device at least once a month. Influencer Marketing is an excellent way to reach this section of the audience, given that TV viewership has dropped among such individuals. Moreover, another study indicates that only 22% of millennials depend on newspapers to stay informed. Many of these people rely on Influencers and trust their recommendations. Since the customer base of the BFSI industry has shifted to digital platforms due to the rise of Influencer Marketing, the industry too had to shift to where the ecosystem lies.
2. Influencer Marketing Helps The BFSI Sector To Reach Millennials And GenZ
3. Influencer Marketing Provides Low Cost For Customer Acquisition
This is another important reason why the Banking and Finance Industry has shifted to digital spaces. The cost of customer acquisition through TV commercials and print media is expensive. Moreover, celebrity endorsements will cost a fortune. Influencers, on the other hand, are an economical way for the BFSI industry to have its voice heard and to promote its products and services. Influencer Marketing reaches more people, and hence while the investment put in by the Banking and Finance Sector is less, the results will be high.
Influencer Marketing provides scope for creativity, innovative narratives, and good story-telling while promoting services and products. This is the type of content that engages people. Unlike traditional forms of marketing that pour myriad leaves of information on the public, influencer marketing is all about simple yet attractive and digestible pieces of information. Hence, customers will be drawn towards it and will likely consider opting for the service and product that is being promoted.
4. Influencer Marketing Helps To Create Engaging Content
Benefits Of Digital Transformation On The BFSI Industry
Axis Bank ran a campaign called #AxisThoughtFactory, which was aimed at promoting the launch of an innovative initiative called ‘The Thought Factory’. The bank collaborated with influencers from the technical niche, and the results were stunning. On average, this campaign received 23000+ unique page views and 3500+ followers. The hashtag #AxisThoughtFacory was trending nationwide on the launch day. This is just one example of how digital transition can enable banks to develop a progressive and futuristic vision and make a unique mark in the Banking world.
Confluencr, being a leading YouTube influencer marketing agency designed a YouTube campaign for Motilal Oswal Group– a reputed financial services firm that wanted to build a rock-solid digital presence. We brought 20+ macro influencers on board and crafted a campaign around educating people about investment options. Creators provided valuable tips and actively recommended audiences to approach the firm for hassle-free investments. The result? The subscriber count reached 16,074K+ with 688+ likes, 4,718 comments, and 1,062K+ total views.
Influencer marketing provides a two-way channel of communication. Consumers can interact with influencers, ask a question and have it answered. Hence, the BFSI industry can keep in constant touch with its potential customers and have them discuss their services and initiatives. It can benefit in the following ways due to digital transformation and influencer marketing:
- Increased Reach
- Increased Affinity
- Increased Engagement
- Increased Visibility
- Increased Leads And Conversions
The BFSI industry is now at a crucial point where it’s realising that digital and social media spaces combined with Influencer Marketing are a great way for it to reach potential customers more effectively than traditional marketing methods. According to a report by the Financial Express, published the last year, BFSI brands spent 24% on social media and 39% on paid search. These numbers are expected to see a significant spike since the customer base is shifting more and more towards digital spaces.
Confluencr is a prominent influencer marketing agency that has helped a wide array of brands and businesses collaborate with the right influencers based on their niche, target, and reach. Our 15000+ influencer network has created 500+ innovative brand campaigns for 200+ leading brands in India. We have served a diverse range of 50+ BFSI brands and have curated 5000+ promotional videos. Reach a global audience with our influencer marketing campaigns that are crafted with skill and expertise. Get in touch with us at [email protected] to learn more.