Trends To Look Out For In Financial Digital Marketing

The digital marketing landscape in India is undergoing a significant transformation; the finance sector is especially witnessing massive growth. As of 2023, the Indian digital marketing market was valued at approximately USD 5.15 billion and is projected to grow at a CAGR of 30.2 per cent, reaching an estimated USD 55.37 billion by 2032. This growth is fuelled by the increasing adoption of technology, social media, and digital platforms across the country. The digital advertising spending is expected to rise to INR 41,000 crore by 2024.

Across various sectors, technology is being increasingly integrated to enhance consumer outreach. The finance sector, in particular, is leveraging digital solutions on a large scale as the country is advancing towards comprehensive financial inclusion. As financial institutions are adapting to this dynamic environment, several key trends are emerging that are being influenced by and further influencing consumer behaviour: personalisation, mobile optimisation, video content, AI, chatbots, and many more.

Hyper-personalisation: It is at the forefront of digital marketing trends in India. Consumers now expect tailored financial advice and product recommendations that cater to their unique needs. Many financial companies are moving towards hyper-personalisation, using data, AI, and automation that goes beyond meeting consumer needs. Around 70 per cent of consumers are likely to engage with personalised content, and companies usually generate 40 per cent more revenue by providing personalised experiences. From banking, insurance, and payment wallets to loans, mutual funds, stocks, etc., personalised consumer marketing is going to push the industry towards 25 per cent more growth in the coming two years.

Engaging Customers Through Video Content: Video content is gaining traction as an effective medium for explaining complex financial concepts. This trend is gaining significant momentum in Tier 2 and 3 cities and beyond, where consumers are increasingly engaging with video content from financial influencers, tutorials, webinars, and promotional materials. Companies are leveraging these formats to simplify complex information and boost consumer awareness, leading to a positive impact on lead generation and business growth. The Indian video advertising market is projected to reach USD 1.3 billion in 2024 and is expected to grow to USD 1.6 billion by 2028.

Generative AI: Can one imagine if consumers get messages that look specifically crafted for them? No one can even imagine how it will impact one’s buying decisions if generative AI is used to its full potential. Generative artificial intelligence can create content that goes beyond mimicking language and instead analyses your preferences and communication style to create hyper-personalised content. It creates hyper-personalised messages and content that can immediately build emotional connection and impact buying decisions. It can increasingly improve user experience and lead to increased consumer outreach in the finance sector. The technology can also help companies detect fraud and improve cybersecurity experience.

Mobile Optimisation: With over 1 billion mobile phone users in India, mobile optimisation has become essential for financial services today. Companies need to quickly switch to mobile-friendly user experience, be it on their websites, consumer app-based platforms, or payment wallets. Mobile internet users in India will reach approximately 600 million in 2023, which means optimising mobile user experience can lead to consumer acquisition, increase conversion rates, bring in more consumer referrals, and even reduce the operational costs of companies. App-based experiences can essentially reduce the need for offices, and employees can be enabled to conduct a lot of business through the apps, while sitting in their homes.

As the financial market continues to evolve, institutions that embrace these trends will be better positioned to meet the expectations of today’s tech-savvy consumer base and thrive in a competitive landscape. These ongoing digital transformations present immense opportunities for growth and innovation in the financial sector and can be instrumental in making India financially inclusive and independent in the years to come.

Vinay Singh

Guest Author Co-founder of Digixpressions