Cult banking: Why the most successful financial services brands are really lifestyle brands

Far from the formal and stuffy institutions of old, the organisations making an impact today have vibrant brand identities, use playful language, and are attracting audiences with edgy advertising campaigns.

And, beneath the surface, there are deeper ideological differences in how they operate.

The most successful modern financial services brands in the UK – think Monzo for banking, or YuLife in insurance – are moving beyond the traditional concept of financial services as an industry that exists with the sole purpose of looking after their customers’ money.

Instead, they are integrating themselves deep into their customers’ lifestyles, with products and services supporting their daily needs and future aspirations. You could even argue that some are no longer financial services brands at all in the purest sense; rather, they are operating as lifestyle brands.

The rise and fall of trust in ‘traditional’ financial services

Financial services have existed for as long as civilisation. In ancient Babylon in 2000BCE, citizens paid interest to deposit gold in palaces and temples, while in Ancient Greece and Rome, official banking institutions existed, again housed within grand temples that were trusted by the upper classes to hold and protect their wealth from theft or attack.

For as long as financial services have existed, trust has been at their core. The larger and more established a financial institution was – whether a Greek temple or an American investment bank – the more trusted it was to keep customers’ money safe.

This changed in 2008. In the space of just a few months, the global financial crisis destroyed the trust that these institutions had been building for decades – and in some cases centuries.

In the US, Lehman Brothers, the fourth-largest investment bank in the country, went under. In the UK, the Royal Bank of Scotland, an almost 300-year-old organisation and, at the time, one of the largest banks in the world, was bailed out by the Government.

Just like that, the assumption that scale equalled trust in financial services was gone.

Fintech: From the fringe to the mainstream

Post-2008, a vacuum of trust served as a catalyst for the emergence of Fintech – a new generation of digital-first financial services companies that ushered in new norms for how brands looked and behaved.

Nearly two decades on, the ideas and behaviours that defined the challenger fintech brands of the time are now mainstream. A digital-first presence, eye-catching brand, and human tone of voice are now standard for brands across savings, investments, and insurance.

Evolving to fully integrated lifestyle partner

We are already accustomed to brands like Apple and Amazon becoming fully integrated into every part of our lives. But now it is the turn of financial services providers to evolve and do the same.

It makes perfect sense. Whether or not we like to admit it, our finances influence how we live our lives. And as consumer purchasing power continues to shrink, the onus is on financial services brands to be about more than just managing money.

Now, they need to be about protecting and enabling their customers’ lifestyles too.

So, how can a financial services brand become a ‘lifestyle brand’?

1. Evolve from knowing about money to knowing your customer

Yes, being the ‘money expert’ is still vital to the credibility of any financial services firm. But that alone cannot create lasting trust.

Trust is gained from having a deeper understanding of your customer than anyone else – from how they earn, save and spend money to their attitudes and hobbies, hopes and fears.  By having a deep and nuanced understanding of their customers, brands can design solutions that transform them from a useful tool to a cornerstone of their customers’ day-to-day lives.

Our recent work with Bupa is a prime example. By recognising that customers are beginning to view health insurance as a wellness investment rather than just a safety net for when they’re sick, Bupa partnered with WHOOP, providing members with wearables to track fitness, sleep and stress. The partnership helped shift Bupa from being seen as a reactive ‘insurance provider’ to a proactive ‘lifestyle facilitator’.

Bupa still offers reactive cover when required, but by supporting the lifestyle needs of customers even when they’re not sick, they are moving towards a positioning of ‘healthy lifestyle essential’ rather than just an insurance policy.

2. Create a human connection

It is ingrained in the public psyche that financial services companies look after themselves first and their customers second. Whether bankers’ bonuses, inflated insurance renewals, or just the general disconnect between giant financial institutions and the general public, history has left few reasons to trust financial services brands.

Where brands can create a meaningful difference and build trust is through honest, human connections. Fintech made brands less corporate and more fun, but fun is trivial without something meaningful at its core.

The biggest driver of customers moving from ‘awareness’ of a brand to ‘consideration’ is when the brand feels ‘for people like me’. The best place to look to understand how this works is outside the financial category. When we think of brands like Patagonia, or Lululemon, we have a clear image of who the brand is for, and what they stand for. And that runs through everything: products, comms, photography, and in some cases even corporate structure.

Financial brands can do this by way of product and comms, but also through partnerships. Monzo’s collaboration with the bakery chain Gregg’s is a prime example. A cult highstreet staple, with an everyman reputation, this partnership told the public that Monzo is on their level, and not that of the corporate, faceless institutions they expect. The result was greater relatability, and subsequently, deeper loyalty

3. A story about the evolution of trust

In financial services, no matter how it is dressed, everything comes down to garnering the trust of customers to keep their money with you. But trust has evolved. It is no longer earned through size and legacy. Before, people wanted banks to feel like their superiors. Now they want them to feel like their equals.

This means that, today, trust is earned by designing and communicating in ways that relate to customers’ real human needs. Incumbents cannot afford to view themselves simply as financial services providers. Rather, they must make a positive contribution to their customers’ way of life, becoming more than just a tool, but a truly indispensable lifestyle partner.

If you want to talk about how you could apply some of these learnings to your brand, we’d love to chat. Click here to get in touch.