Is marketing of financial products through web a success?

companies offering financial products are among the top online advertisers as trends shows over the last few years. i have seen companies hugely utilizing their marketing budgets during the last quarter on various online channels. its now a perfect platform to get leads which eventually builds database, but ultimately a agent in person is required to explain/sell the product.

Though I feel that there is no alternative to the personal touch in Agent- Client relationship,yet in the world of financial products marketing there has been a sea change over the last 1-year.Distribution margins on many financial products have become wafer thin or are well on their way to becoming marginal within the next one and a half year.A scenario may well come when it becomes un viable to service all of one`s clients through physical form fill up and submission to the concerned office.I feel that web based tools can be adopted......not as the primary interface but as a supporting platform for repeat sales and customer servicing tool.I am in support of Ekta Dutta`s arguement.Thank you Ekta for the reference.

Financial Products are more closely linked to information, news and current happenings in the market place. Hence, every ounce of information is important in someone being able to get the benefit out of the same. With web being a 'live platform' capable of giving 'real time' information, it wins hands down in terms of being a 'highly efficient touch point' for the purpose of reaching the product to the customer and more importantly for the customer to be 'empowered' in his own management of finance.

Having said that, let us understand the difference between marketing, transacting and advise. Financial marketing on the web has reached a high level of success (product information is sought, given online and being consumed online). The fact that this question has been posted in the web and being answered by me stands testimony to this. However, transacting, though has increased tremendously over the last few years, has a looong way to go before being considered a success for which my benchmark would be 'air / rail ticket' purchases. Advise is yet to take the baby steps in the web medium.

In light of the above, looking at it more comprehensively, I would say that we have come a long way, but the journey is longer.

KS

Web is a powerful medium for lead generation for the BFSI Industry.  Very carefully created and highly targeted and focussed product advertisement campaigns online are very powerful tools.  Since these leads are incoming, the lead quality is very high and the conversion ratio expected is very good.

This is especially true because the we the complete product information can be provided online using simple web pages and the campaigns can be sent to a target segment through bulk mailing or the advertisements can be flashed on most of the online tools like on websites, instant messengers etc.,

Also financial products like Insurance and Mutual Funds with tax benefits are campaigned mostly from October to March in India which generates a good number of qualified leads.

Online Banking is offered by most of the major Banks in India and they use the internet power to promote various types of financial products, since they know most of their online customers and their online behaviour and the pages most often visited etc., they target most of their campaigns based on these statistics.

So to conclude, the internet is a very powerful medium to market financial products successfully.

Absolutely...and that too in no uncertain terms. With the growing penetration of information technology in every sphere of our life, decision-making on investments, insurance, and financial stability has become all the more easier. Just by googling or browsing the websites of various financial institutions and service providers, one can choose the best possible investment option. Further, with the social networking spreading its wings and becoming a choice enanbler in the way people communicate, marketing of financial products can hold its forte in the coming years. Wonder if we can have dedicated communities/network of certified planners and advisors who can address this.

It would largely create awareness of the various product offerings, but finer points will have to be discussed in an one to one session with the sales person, who is reasonably aware of the details of the products and then the customer would be able to make a decision

Yes definitely it would success because nowadays people dont have time & they do their all the financial transactions through internet banking. Where they can find their best suit of financial products. 

there are virtual brokers who provide online financial services where the clients can be thorough about the information of different financial products.

Yes it is a success. today there is an array of products available in the market and one can really compare and the product that suites his needs best. Moreover with so many new products being launched every fortnight internet is the best option. And not to mention it is just a beginning....in next 3-4 years its going to revolutionize once people start using internet and more secure internet system evolves.I recently read an article....In U.S.A. 25% people use internet banking but the point is that in a survey 40% of people who do not use internet wish to use it but do not use it b'coz they feel insecure.... and that 's a challenge which would take some time!!

in case of financial products ,COMMUNICATION plays a key role ;if a marketeer can effectively convey its idea through comparative analysis and data presentation related to product .but this would yield desired results if feedback system is in place to entertain queries posed by potential users or existing users ,even more important is to give speedy feedback to them (within 24 hrs). this would drastically bring down the manpower cost and re;ated cost as well.times have come when marketeer should design marketing plans keeping in mind the future.

It depends on how well you market the product.  If you are marketing financial products, you need the prospectus, forecast and trend analysis.  You need to be a "virtual broker" or do not waste the time of putting it on the web.  Anyone can look up he SAP, DJ or overseas markets.  You need to be the virtual broker and provide a 3D image of the products you are selling. 

I would let my thought end with this; this debate has went well and many well thought ideas have been exchanged on both sides.  How many have been in person?  Does this not show that if the information flows, when needed, on the internet is effective?

If we take the case of banks.different segmentation is required for retail customers and corporate customers as their needs and preferences vary. Within the corporate customers, segments should be defined according to the sizes.Integrated marketing communication is required where web can play an important role. The availability of different financial products through merchant banking, mutual funds, insurance, venture capital e.t.c. need to be made known to the customers in the most effective way so that they are thorough about the products.The industrial customers should make effective use of the credit to earn profits and reinvest for growth to boost the national economy rather than sucking out the profit through dividends.

Rightly said. Internet is a tremendus medium for marketing anything including financial products/s. One may not avoid intrnet and this channel may be used more and more in days to come.

Of course, personal contact is a must. After getting response on-line, the seller must be in touch with the buyer to get 'physical' papers/informations/signatures to ful-fill KYC norms and finally OK the deal. Further, the buyer must be cautious for Internet Fraud-stars. Thanks.