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4 Compelling Reasons Banks Need to Try Affiliate Marketing

Caoimhe Ryan

Caoimhe Ryan

Affiliate Relationship Manager
  • Last Updated: February 2, 2024

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Ever wondered how your bank could unlock untapped opportunities in today’s marketing world?

Imagine expanding your reach beyond conventional methods, effortlessly connecting with diverse audiences, and increasing brand influence – affiliate marketing is the answer.  

As banks explore new ways to engage customers, affiliate marketing opens doors for growth and expanding market reach.

Curious to explore this game-changing strategy that accounts for up to 40% of all customer acquisitions for financial institutions?

Let’s dive in with four compelling reasons why affiliate marketing is just what your bank needs and how to address any challenges that coincide.

1. Diversification of Marketing Channels

In a world dominated by traditional marketing, diversification is key.

Affiliate marketing allows banks to move away from simply relying on conventional methods and strategies, such as print, TV and radio, and, in turn tap into new customer segments and markets that may have been previously untapped.

Affiliate partnerships extend a bank’s reach across various online platforms. Affiliates, with their own websites, blogs, and social media channels, create additional touchpoints for potential customers to discover the bank’s products and services.

This diversified digital footprint ensures that the bank’s brand is exposed to a broader audience, increasing the likelihood of attracting new customers.

Knowing where your customers are in their journey and what their platform preferences are also allow banks to target these audiences effectively, resulting in increased customer acquisition and revenue generation. 

Check out The Financial Brand’s article whereby, the Digital Banking Report asked financial institution executives about the success of their digital transformation efforts and organizations overwhelmingly believed their efforts in cybersecurity and supporting digital channels were the most effective. 

2. Cost Effective Customer Acquisition

Compared to traditional marketing channels, affiliate marketing offers a cost-effective approach to customer acquisition.

Banks can establish performance-based payment structures with their affiliates, ensuring that they only pay for actual conversions or leads generated.

In the financial services space, this can mean once a customer opens a new savings account or funds an account, only then will the bank pay the affiliate.

This pay-for-performance model minimizes the risk associated with traditional advertising methods where costs are incurred regardless of the results.

In essence, affiliate marketing allows banks to optimize their marketing budget and allocate resources more efficiently. 

 

Alongside performance based pay-outs, banks upfront expenses will also be reduced. Collaboration with influencers can be less expensive than traditional advertising channels, which may involve significant upfront investment for content production, media buying, and other up-front fees.

Many affiliates work on social media sites where organic reach is attainable without the need for additional advertising.

Using affiliates on platforms such as Instagram and YouTube, allows banks to gain access to these channels without incurring the significant fees associated with traditional media placements.

Content creators who are open to affiliate marketing save banks those fees, thus the only expenses are those of acquired customers.

3. Enhances Online Presence and Brand Awareness

Affiliate marketing is a powerful technique for increasing internet visibility and brand recognition.

Affiliate networks provide access to a plethora of opportunities and partnerships with affiliates whom you may not have previously had the opportunity to collaborate with.

Building alliances by using affiliate partners networks allows banks to extend their reach across digital channels, effectively boosting their digital footprint and brand visibility, achieving mutual success. 

As affiliates specialize in niche markets and specific demographics. By strategically choosing affiliates aligned with the bank’s target audience, the bank can ensure that its message reaches the right people.

This approach not only increases the chances of conversion but also fosters relationships with more qualified and interested customers. Not only this, affiliates excel at creating engaging and authentic content.

They can create a fascinating story that resonates with their audience when they post content relating to a bank’s products or services. This humanizes the brand, making it more relatable and memorable in the eyes of potential customers.

4. Improved Target Marketing Efforts

Collaboration with respected affiliates can improve a bank’s brand visibility and credibility.

When affiliates promote a bank’s products or services, it can provide a level of trust that traditional advertising may struggle to reach.

Often, affiliates followers have similar characteristics. For example, FitSmallBusiness cater to business owners, whereas Millennial Money targets millennials.

Depending on your “ideal client” or fit, affiliates can be a powerful way to really connect and showcase the value you bring these audiences.

These relationships allows banks to capitalize on the trust that affiliates have developed with their target audience, resulting in enhanced brand awareness and a good association in the minds of relevant potential clients.

Affiliates, particularly those with an engaged audiences, can provide significant insights on consumer behavior.

Banks can obtain a better knowledge of their target audience’s preferences, requirements, and issues by analyzing interactions, comments, and responses on affiliates postings. This data can be used to inform future marketing tactics and product development.

Launching an Effective Affiliate Program

While the benefits are substantial, affiliate marketing requires a thoughtful and systematic approach. There are a few boxes you need to tick before launching an effective affiliate program,  including:  

  1. Defining your target audience, objectives and clearly outlining your goals is essential to laying a solid foundation. Having a defined strategy will allow you guide your strategy and measure success.
  2. Selecting the correct products or services to promote is critical for attracting top affiliates. Concentrate on offerings that are distinct, valuable, and appealing to your target audience.
  3. Once your offerings are set in stone, setting attractive commission structures and a sustainable business model will entice affiliates to join your program.
  4. Choosing the right affiliate platform is critical to the success of any program. Look for a platform that meets your company’s needs, has comprehensive tracking, analytics features and is user-friendly, e.g. Fintel Connect.
  5. Ensure you know what type of affiliates you’d like to work with and check to see if the platform/ agency has the affiliates you’re sought after. You should also inquire about how the platform or agency selects quality affiliates. To learn more about ’how to pick the right partner’, it’s important to keep these questions top of mind:
  • How do you assess and select affiliates? 
  • What strategies do you use to motivate and engage affiliates? 
  • How do you measure the success and performance of the affiliate program? 
  • How do you handle affiliate compliance and fraud prevention? 
  • What verticals or industries do you specialize in? 

Ready to launch your affiliate marketing program? Speak to our specialists and learn more about Fintel Connect. 

Conclusion

Affiliate marketing presents a unique opportunity for banks to boost their marketing strategies.

By diversifying channels, reducing costs, enhancing online presence, refining targeted efforts, and fostering strong partnerships, banks can leverage this powerful tool to grow.

Partnering with top affiliates grants access to new audiences, amplifies brand visibility, and helps achieve cost-effective marketing results.

Ticking all your boxes before launching an effective affiliate program ensures a seamless transition into the realm of affiliate marketing and securing a promising future in the ever-evolving financial landscape.

If you wish to dig deeper into how affiliate marketing can help your bank, get in touch with our team.

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