5 Investment Marketing Trends in 3Q21

Like other financial sectors, the investment and wealth management sector is dealing with changes in investor preferences and needs, as well as technological advances that impact how firms interact with both investors and their financial advisors. The following are 5 key marketing trends that we observed in 3Q21 as the industry seeks to respond to these changes.

  1. Introducing new digital tools to both investors and financial advisors. As investors become more comfortable with managing their financial needs through digital channels and tools, investment firms are improving the client experience and using these digital tools to serve as a point of differentiation.
    • Investor tools: Schwab Retirement Plan Services launched My Financial Guide, an interactive, online dashboard; Jackson introduced an enhanced Retirement Expense & Income calculator
    • Advisor tools: John Hancock reported that it has engaged with more than 1,500 financial advisors on the ON24 Digital Engagement Platform, which enabled partners to grow new business by 266%; Bank of America Merrill Lynch launched the MAX (mobile advisor experience) app to get advisors back in the field
  2. Using surveys to demonstrate that younger investors are committed to working with financial advisors, even as they embrace digital investment tools.
    • T. Rowe Price’s Retirement Savings and Spending Survey: 43% of retirees receive advice from a financial professional
    • New York Life’s Wealth Watch Survey: 61% of Millennials and 50% of Gen Zers (vs. 41% of all respondents) are interested in receiving help from a financial professional
    • Broadridge: 61% of Millennials (vs. 44% of all investors) are likely to begin working with a financial professional over the next two years
    • Schwab Retirement Plan Services: 62% of Gen Zers say their financial situation warrants advice from a professional
  3. Looking to position themselves in the ESG investments space via thought leadership, commitments and other initiatives as a result of growing awareness of and interest in ESG.
    • Publishing ESG/sustainability reports to establish their own ESG credentials
    • Making financial commitments: New York Life announced a $50 million investment to support the preservation of affordable housing rental properties, and Northwestern Mutual announced a $100 million impact investing fund
    • Developing ESG-focused content, including articles and blog posts, as well as incorporating ESG into investor surveys: according to an Accenture survey, 80% of Gen Z and 63% of Millennials asked their advisor about ESG investments vs. only 27% of Baby Boomers
  4. Incorporating financial wellness elements into retirement solutions – an increasingly important theme in financial planning – as well as promoting financial education in thought leadership.
  5. Rebranding and launching new advertising campaign to reposition themselves in a changing investment market.
    • MassMutual introduced the “Uncomfortable Truths” brand platform and a multichannel brand advertising campaign
    • Prudential launched the “Who’s Your Rock?” campaign, which used its famous rock image for the first time in a decade
    • Protective Life rolled out a new brand identity and logo
    • PNC Asset Management rebranded its personal wealth businesses as PNC Private Bank, with Hawthorn rebranded as PNC Private Bank Hawthorn

Strategies for Marketing Your Financial Literacy Program

As financial institutions seek to position themselves as trusted providers of financial advice and solutions, one of their key areas of focus is financial education.  Many of these firms have focused attention on establishing comprehensive financial education programs.  However, equal attention should be given to how these programs are communicated.  If you want to maximize the impact of your financial education program, consider the following methods to build client awareness and engagement.

  • Partner with national and local organizations seeking to grow financial literacy. Partnering with these organizations can take many forms, including publishing surveys or providing funding. In June 2017, Wells Fargo announced a $100,000 donation to Junior Achievement of Chicago.  Operation Hope has partnerships with a number of leading banks (including SunTrust, Regions Bank and First Tennessee Bank), who all offer the Operation Hope Inside financial well-being program in several of their branches.
  • Host or sponsor events.  Events constitute one of the key ways for firms to build direct engagement with their financial education programs.  Firms have many options on how they wish to scale and direct their investment.  MassMutual hosts FutureSmart Challenge events to provide financial education to middle school students, reaching 40,000 students in 17 cities to date.  In June 2017, SunTrust launched the “onUp on Tour” to promote its onUp movement in 45 cities.  And In October 2017, American Century Investments partnered with Investopedia to launch a Financial Fitness Tour, featuring a 45-foot bus, called “The Financial Coach.”  These firms have extended the impact of these live events with tweets and postings on online portals, and also host virtual events, including podcasts and webinars.
  • Generate engagement through games and contests.  In our highly interactive world, online games and contests can be very effective in enabling people, especially the younger demographic, to gain important financial knowledge in entertaining ways.  For the past four years, H&R Block has been running the H&R Block Budget Challenge, an online game that teachers can use to teach financial concepts to high school students.  In December 2017, The Hartford partnered with Junior Achievement USA to launch JA MyBiz Builder, an online experience that teaches entrepreneurial concepts to teens.  And GOBankingRates recently launched a competition (with a top prize of $1,000) to identify the best tips, tricks and tactics for navigating one’s personal finances.
  • Reinforce the financial education message via social media.  A number of financial firms are using Twitter hashtags to generate interaction around their financial education programs. Examples include Ally Financial’s #WalletWiseWednesday twitter series and Regions Bank’s @FinancialFitness hashtag (part of its Financial Fitness Fridays program).  Other ways of using social media to promote financial education include events (Jump$tart Coalition’s Facebook Live event to discuss deposit insurance) and social communities (Canvas Designed by Citi, a beta-testing community that enables Citi customers to co-create products and digital capabilities promoting financial wellness).
  • Leverage online and mobile banking platforms.  As consumers become comfortable with using online and mobile banking to perform a wide range of financial activities, some providers are starting to incorporate financial education tools into these platforms.  Bank of America recently added a money management and financial education tool into its mobile banking platform.  And Wells Fargo is planning to launch Greenhouse by Wells Fargo, a mobile banking experience that includes financial management tools.