Financial inclusion is one of the most amplified ideologies in many geographical areas. This has led to the implementation of noteworthy efforts to build institutions and systems for the inclusion of diverse socio- economic classes. According to financial analysts, the past two decades have seen a rapid increase in the interest in financial inclusion, both from policymakers and researchers. It is evident that structural, as well as policy-related factors, such as encouraging banking competition or channelling government payments through bank accounts, play an important role in achieving financial inclusion.
In Nigeria, the CBN had set a financial inclusion target of reaching 80 per cent of the total adult population by 2020, but presently, the country is not on track to meet this target which was set out in the National Financial Inclusion Strategy (NFIS) of 2012.
The NFIS had set two financial inclusion targets for the year 2020: an overall financial inclusion rate of 80% of the adult population and a formal financial inclusion rate of 70% of the adult population. As of 2016, just 58.4% of Nigeria’s 96.4 million adults were financially served and only 48.6% of all adults used formal financial services. How do we make financial inclusion exciting? How do we encourage consumer consumption? The answer is well thought out through executed branding for financial institutions.
Various financial institutions and societies have taken steps toward financial inclusion, but to be successful, they need to understand how to accurately target and market to their potential customers. Conventionally, most financial institutions are known to be conservative in their marketing and branding approaches towards this market. As a result of this, customers approach these institutions with a perception of distrust and apprehension. To address this disengagement between financial solutions and their consumers, financial institutions should ensure that great attention is paid to branding techniques. This is also very important in building a distinctive brand. Most consumers become less apprehensive to consume a financial product or service when the repetitiveness and recognizability of the branding elements become part of the familiarity of their community environment. From logos to taglines, tone of voice, advertising styles, these elements present a powerful conviction to customer acquisition. Without these, financial institutions will not connect in a relevant way with their target market and financial inclusion remains unprogressive.
Read Also: High operation cost drives banking agents away from Nigeria’s financial inclusion objective
Brands are expected to have a life outside management functions, have a personality and opinion that consumers can relate to. Financial institutions not excluded. It is therefore critical that financial institutions communicate constantly to their target audience to enable a more progressive leap towards financial inclusion. The more people see you, the more they become comfortable, the more they are convinced to try you and (upon successful customer experience) the more they trust you. Some brands run one successful campaign and then go quiet after that. Out of sight, out of mind. Whatever the case, there must always be something you are saying to your customers.
At Hitchcock Michalski, we believe that the more consumers can rely on an implicit reaction to a brand, the more likely they are to buy that brand – this is a key essence of our outstanding branding practices. Having worked for big financial brands like Access Bank who are making giant strides towards achieving CBN’S 2020 goal, we are even more convinced that distinctive branding plays an important role in aiding financial inclusion.
The year 2020 has taught us that to achieve financial inclusion, institutions in the finance and Fintech sector must work towards winning the trust of consumers. This can only be earned through the non-exhaustive implementation of marketing and branding strategies. For financial inclusion to work, institutions must win the conviction of the end-user. Conviction is only earned through constant engagement.
It is critical to understand the pain points of your customers, to truly understand their needs and what they find difficult when dealing with a financial institution. We have to develop a well thought out strategy towards bridging the gap between financial solutions and the consumers, always with solving the customers’ needs and challenges in mind, failing which all efforts geared at inclusion for the unbanked and underbanked will remain ineffectual.
Fiona Hitchcock is the Managingpartner for leading brand strategy, design and communication agency, Hitchcock Michalski and has worked with multiple financial brands across Africa.
