BFSI sector gears up for festive season with regionally relevant & personalized campaigns

The banking industry in India is going through a transition with increasing adoption of online banking options such as mobile banking, net banking, and UPI banking system, reducing the need for people to go through offline transactions and cash payments and leading to a paperless banking system, saving their time, resources and proving to be cost-effective. In today’s day and age anybody with a smartphone can open a bank account and pay money in shops, for transport, and on other occasions through online payment apps such as Gpay, PhonePe, Paytm, and others that need them only to scan a QR code or send money to a contact.

Consequently, this has led to lesser need for people to rush to banks and withdraw cash as used to take place in earlier times, since almost all kinds of payments can be done online, except for certain purposes where visits to the banks are a necessity. Several government measures have also led to a rise in digital payments such as Demonetisation, Make in India, Startup India, Digital India, and others. The traditional banking system is still the only option to withdraw money for people without a smartphone or internet connection.

Since the launch of UPI by the National Payments Corporation of India in India, digital transactions have grown by huge numbers, with UPI transactions standing at Rs 67 billion worth (more than 100 million transactions) in 2017 and its total volume being Rs 83.75 billion within the end of the year 2023, as per sources.

As per Statista, in 2024, traditional banks are estimated to be dominating the banking market witnessing a market volume of $435.80 billion. The net interest income in the banking industry is predicted to reach around $459.60 billion in 2024, growing at a CAGR of 0.89% in the upcoming years. The highest net interest income is estimated to be generated by China at $4332.02 billion in 2024.

With a surge in mobile banking, people adopting digital banking options and spending a considerable amount of time on social media, banks are increasingly relying on digital marketing, and social media marketing strategies to reach out to more customers, for retention of existing customers, and for resulting in more sales of their products and services, leading to greater revenue. The festive season is the opportune moment for brands to tap into the spending spree and the joyous spirit of the consumers who make some important financial decisions during this time of the year spanning Raksha Bandhan, Ganpati festival, Durga Puja, Dhanteras, Diwali, Christmas, New Year and undertake big-ticket purchases.

Moreover, with the increased exposure to online payment options and online banking, a greater number of consumers are opting to purchase financial products and services online, which leads them to derive benefits from the various festive offers that the banks come up with during the festive season such as discounts on festive loans, zero processing fees, shopping vouchers, lower interest rates, non-essentiality of collaterals when taking a loan, repayment terms that are flexible and more.

Adgully spoke to a cross-section of industry experts in the banking sector, who shared some valuable insights on how they are gearing up for the festive season this year.

Kedarswamy Ravangave, Head of Marketing for Consumer and Commercial Bank, Kotak Mahindra Bank, said, “To accommodate the expected surge in consumer spending and transactions during the festive season, we are ensuring our digital and in-branch services operate seamlessly. Our focus is on providing a frictionless experience, whether customers are shopping online or visiting our branches. We are also gearing up with attractive offers and promotions to make the festive season even more rewarding. Additionally, we are organizing various festive initiatives at our branches, ATMs, and corporate desks to create a festive atmosphere.”

Akhil Almeida, Head of Marketing, Bandhan Life Insurance, added here, “The festive season is a period of joy, togetherness, and new beginnings, and Bandhan Life’s strategy is to align with these sentiments by bringing our customers meaningful and impactful offerings. Our marketing strategy for the festive season will deepen our connection with customers through personalized and regionally relevant campaigns. We are launching several initiatives that not only highlight our products, but also emphasize the trust and security that Bandhan Life stands for. Our campaigns will leverage a mix of digital, traditional, and on-ground activations to ensure we reach our customers wherever they are and provide them with the right solutions for their financial needs during this auspicious time. We believe in being a part of our customers’ journeys, and our festive initiatives are designed to offer them the peace of mind and confidence they need to celebrate the season to the fullest.”

“The festive season typically witnesses an increase in consumer activity, and this year is expected to follow the same trend. This year, our marketing efforts are centered around the importance of financial security as families come together for the season. By leveraging a dynamic mix of targeted efforts across digital platforms, social media, and on-ground activations, we aim to offer seamless and engaging ways for our customers,” said Geetanjali Chugh Kothari, Chief Marketing Officer, Future Generali India Life Insurance.

Elaborating on Zuno General Insurance’s plans for the festive season this year, its Vice-President and Head of Marketing, Ketan Mankikar said, “As we step into the festive season, we are thrilled to engage with our customers in impactful and meaningful ways. In August, at the onset of the Indian festive season, we launched our innovative usage-based insurance offering, the ‘Pay How You Drive’ motor add-on cover. This product not only promotes, but also rewards safe driving. Customers who opt for our PHYD add-on and achieve a driving score above 90% can enjoy up to a 30% discount on their car insurance renewal premium.”

Festive Marketing Strategy & Marketing Campaigns/Initiatives

Reflecting on Kotak Mahindra Bank’s festive marketing strategy this year, Kedarswamy Ravangave said, “Our festive marketing strategy has evolved this year, shifting from a multitude of alliances to a more focused approach. We are concentrating on categories that resonate most with our customers. To kick start the festivities, we have introduced FreedomFest, a special offer exclusively for our salaried customers. Enjoy a 15% discount on Kotak cards for purchases on popular everyday platforms like BlinkIt, Zepto, Swiggy Instamart, and MakeMyTrip. Additionally, customers can take advantage of our enticing offers on personal loans, home loans, affordable housing, and auto loans. Stay tuned as we have exciting news on the horizon!”

Geetanjali Chugh Kothari added here, “In June, we launched the #UnboxYourPolicy Campaign to educate life insurance policyholders about the significance of understanding their policy details, across digital platforms. We will continue to foster awareness and transparency on the occasion of ‘Life Insurance Awareness Month’ in September. Additionally, our ongoing ‘Invest in Independence’ campaign is being given a festive twist to resonate with the spirit of the season, reinforcing our commitment to helping individuals achieve financial freedom through effective planning.”

Zuno General Insurance plans to extend its safe driving initiative throughout the festive season, leveraging both digital and traditional media touchpoints. “We aim to encourage responsible driving, making Indian roads safer while also rewarding our customers for their safe driving skills with Zuno PHYD,” said Ketan Mankikar.

Growth Projections & Plans for H2 2024

Speaking about the growth projections and plans for H2 Kotak Mahindra Bank’s Kedarswamy Ravangave said, “During the festive season, the buoyant customer sentiment coupled with the best offers of the year led to an increase in purchases. Like last year, where we had some really attractive offers such as getting up to 35% additional discount with Kotak Cards and EMI on Cleartrip, 10% on Myntra and Flipkart, marking all the consumer favourite categories, we will bring in offers that make it easy and affordable for the aspirational Indians to make the most of the festive season. Once we get this right, the growth will take care of itself.”

Highlighting the same, Geetanjali Chugh Kothari said, “For the second half of 2024, we are optimistic about continued growth, driven by our focus on customer-centric solutions and digital innovation. We anticipate a significant increase in policy renewals and new customer acquisitions, especially during the festive period. Our growth strategy includes introducing innovative products, forging strategic partnerships, and enhancing our digital capabilities to better serve a wider audience. By leveraging data analytics, we aim to refine our offerings to meet customer needs more effectively, positioning ourselves to achieve our growth targets and deliver strong performance in the latter half of the year.”

“The festive period is an ideal time for us to deepen our connection with customers, and we believe it will play a crucial role in driving our growth this year. Over the past five years, we have achieved a consistent growth rate of over 50% year-on-year, outpacing industry benchmarks. Our goals for this year are equally ambitious. As we continue to build trust and deliver value, we are committed to making insurance more accessible, engaging, and dependable, ensuring our customers can celebrate with peace of mind, knowing their loved ones and possessions are well-protected,” concluded Ketan Mankikar.

Thus, right from offering hassle-free customer experiences to delivering regionally relevant and personalized campaigns, offering discounts on banking card payments, focussing on customer-centric solutions, digital innovation, and more, banks are on a full spree to offer enhanced customer experience to their customers this festive season, adding much value to their lives and instilling a sense of greater financial confidence.

Also Read: Kotak’s Rohit Bhasin on how FMCG-isation of banking is democratising BFSI sector