As a global leader in the financial services space, helping businesses connect with current customers and identify new audiences, we are always looking at industry trends and thinking about how to stay one step ahead.

Here, some of our financial services specialists share their key digital marketing trends from 2023 and what they think will be important through 2024.

What We Saw In 2023

• Rise of AI in translation: Generative AI tools are transforming translation, offering faster, more cost-effective solutions. This could enable financial institutions to provide real-time language support and multilingual marketing content more easily. Just remember that any AI-generated marketing content must be checked by a human subject matter expert before use.
• Multicultural marketing strategies: Recognizing the increasing diversity seen in many countries, financial institutions around the world are shifting towards campaigns that resonate with various cultural segments within their markets. This involves using culturally relevant imagery, messaging, and channels to reach broader audiences. As an example, in response to the growing Hispanic population in the US, American banks are increasingly offering Spanish-language materials, financial education, and marketing campaigns to build trust with this community and attract new customers.
• Compliance with accessibility regulations: The finance industry is highly regulated, with regulations constantly being updated to keep up with real-world changes. As an example, the US recently saw the introduction of regulations that require financial institutions to provide language access to customers with limited English proficiency (LEP customers). This has driven demand for translation and interpretation services to ensure compliance and avoid penalties.
• Technology adoption to reach diverse communities: Technology is key in enabling businesses to reach more customers effectively. Mobile apps, online banking platforms, and chatbots with multi-language capabilities are increasingly important for offering accessible financial services.

What To Expect In 2024

• Continued growth of diverse customer segments: Language accessibility is set to be an even bigger priority for financial institutions. Those that offer provisions in multiple languages will find themselves succeeding and growing while those that fail to keep up are setting themselves up to fall behind.
• Evolving regulatory landscape: Regulatory requirements around language access might become stricter in various countries, pushing financial institutions to invest further in translation and interpretation services. For example, in the US, the Consumer Financial Protection Bureau (CFPB) issued a statement in 2021 encouraging financial institutions to provide better access to financial products and services for consumers with limited English proficiency (LEP). This statement, while not a binding regulation, emphasizes the importance of language access and highlights potential areas for improvement. California has the strongest language access requirements in the US. Their Civil Code requires financial institutions to provide translated materials “in a language understandable to the significant portion of the non-English speaking population in the geographic area served”. It is a similar story if we look at Europe. The European Union (EU) has various directives and regulations promoting non-discrimination and equal access, which can indirectly impact language access in the financial sector. For example, the Unfair Commercial Practices Directive prohibits misleading and deceptive practices, which could include failing to provide essential information in a language understandable to the consumer.
• Integration of AI in marketing and customer service: Generative AI and other AI-powered tools could revolutionize marketing campaigns and customer service interactions by enabling real-time personalization and multilingual communication. This must be done carefully, however, to ensure relevancy, accuracy, and safeguard privacy.
• Data-driven marketing strategies: Financial institutions will leverage data analytics to better understand customer preferences and behaviors across diverse segments, allowing for more targeted and effective marketing campaigns. For example, recent research found that 70% of Hispanic Americans prefer to be addressed as Hispanic, 64% say an ad that shows their culture is more likely to connect with them, and 70% say there should be more ads specifically made to resonate with the Hispanic community. With data like this, financial institutions can make smarter decisions and craft better marketing campaigns that better align with what customers actually want.
• Focus on customer experience: As competition intensifies, providing a seamless and personalized customer experience across languages will be key to attracting and retaining customers.

Additional Considerations

• Increased automation and self-service options: Financial institutions are increasingly adopting automation tools and self-service platforms to improve efficiency and accessibility for customers. The best of these will be available with multilingual interfaces.
• Emergence of fintech startups: Fintech startups offering innovative financial solutions focused on specific demographics or language needs could disrupt the traditional banking landscape. For example, Dave, Chime, Nubank and Paytm all market to unbanked and underbanked markets by providing a mobile-centric interface and an extremely low barrier to entry. This is important since the unbanked and underbanked population in the US often falls under the limited English proficiency (LEP) umbrella.
• Social media marketing: Social media platforms offer valuable opportunities to reach diverse audiences and build brand awareness in multiple languages. Be aware that different social media platforms are popular in different countries. While Facebook, Instagram and LinkedIn may be popular with many Western audiences, platforms such as WeChat, Line or KakaoTalk may be more appropriate for financial institutions targeting customers from China, Japan or South Korea respectively.

Here at TransPerfect Digital, we are excited about what is ahead in the financial services space. To learn more, check out our financial services solutions!