As financial disruptors continue to steal the hearts of young consumers, the popularity of traditional banks has suffered a loss. Now, these legacy brands are pulling out a few digital tricks of their own in an effort to prove they’re not as tired as they look.
With a new crop of alternative banks (or neo-banks) courting consumers, legacy brands have finally decided to dust off their branches and fight back. Goldman Sachs, for example, is one of the big players from outside the consumer banking industry moving in on its opponents. The company has pushed forth an online lending product called Marcus, which hit a $2 billion milestone last year, with plans to expand the feature into a full-service online bank.
In the past, Goldman Sachs expressed an interest in capturing new, younger audiences via social media, where it achieved above-average engagement across platforms. The introduction of Marcus helped bring on particular success on Facebook, according to Gartner L2’s Digital IQ Index: Wealth Management. But the feature’s success did not transfer over to company site traffic, leaving Goldman Sachs locked in the average zone.
As financial disruptors double down on no-fee services and early paycheck perks for consumers, and even Amazon is rumored to be concocting a checking account just for young people, it’s not too late for traditional banks to flip the script. If traditional banks want to keep away from being constantly perceived as big and bad, many will have to undo their pre-existing infrastructures to make room for digital advances. But if they want to stand a chance in the new financial industry, better late than never.