Marketing’s role in banking is undergoing a major transformation. A new survey by the American Bankers Association highlights how marketing is shifting from a traditional support function to a critical driver of business growth. With banks increasingly relying on marketing to acquire customers and grow deposit balances, the function is becoming a strategic partner across business lines.
Marketing as a Growth Partner
For years, marketing in banking primarily focused on brand awareness and promotional activities. However, with digital transformation accelerating, marketing is now playing a key role in revenue generation. The ABA survey, conducted between September and October 2024 with 101 bank respondents, underscores this shift.
Two key factors are driving this change:
- Digital Technologies: Enhanced analytics and digital tools allow banks to directly link marketing activities with business outcomes.
- Shift to Digital Sales Channels: As more banking transactions move online, marketing plays a greater role in customer acquisition and engagement.
Banks are increasingly adopting a ‘revenue operations’ model, integrating marketing, sales, and customer service to optimize customer growth and retention. More than half of the survey respondents reported that business lines directly influence their marketing budgets, reinforcing marketing’s role in achieving business objectives.
A Strategic Budgeting Approach
The survey also sheds light on budgeting challenges. While marketing is now deeply involved in growth strategies, 42% of respondents indicated that their budgets are set before business goals are fully defined. Best practices suggest that budgeting should align with specific growth targets—such as increasing checking accounts by a set percentage—allowing marketing to calculate acquisition costs and allocate funds effectively.
Marketing’s Influence on Digital Strategy
Another significant finding is marketing’s growing influence on digital banking strategies. Over half of the surveyed banks reported that marketing has a strong impact on their digital delivery approach. Nearly 75% of banks now offer online applications for deposit products and mortgages, reflecting an industry-wide shift toward digital banking.
Despite this progress, there’s a gap between consumer expectations and reality. While only 16% of checking accounts are currently opened online, nearly half of Millennials and Gen Z consider online account opening a must-have feature. Many banks still lack digital application options or have cumbersome processes that drive potential customers back to physical branches.
The Path Forward
To thrive in the evolving landscape, banks must fully integrate marketing into their growth strategies. This requires a collaborative mindset and an increased reliance on data and technology. As Charlene Cates, Chief Strategy Officer at Machias Savings Bank, notes, “Our marketing department is now actively partnering with sales operations to help our bankers find new growth opportunities.”
With marketing playing a crucial role in digital engagement and revenue generation, banks must continue to refine their strategies—leveraging data analytics, optimizing the digital customer journey, and ensuring seamless online experiences. The future of banking growth lies in marketing’s ability to bridge the gap between awareness and conversion, ultimately driving sustainable business success.
Read the full article on ABA Banking Journal.
