Affiliate marketing is an effective tool for many industries. But what about financial institutions in heavily regulated markets? These organizations face unique challenges when it comes to marketing. (Like strict regulations and high customer expectations.) Thankfully, affiliate marketing can help.
Let’s take a closer look at how financial institutions can use affiliate marketing to fuel growth in a regulated market.
WHAT ARE FINANCIAL INSTITUTIONS IN A REGULATED MARKET?
Financial institutions in a regulated market include banks, credit unions, insurance companies, and investment firms. (And they operate under strict government rules.) These rules help:
- Make sure everything is clear
- Keep the market stable
- Protect customers
For example, banks must keep enough money on hand and follow laws that prevent money laundering. They also have to protect customers’ private information. This means financial institutions need to find smart ways to grow while still following the rules.
That’s where affiliate marketing comes in.
HOW AFFILIATE MARKETING CAN DRIVE GROWTH FOR FINANCIAL INSTITUTIONS IN A REGULATED MARKET
Affiliate marketing lets you team up with trusted partners who already connect with your target audience. These partners, or “affiliates,” might be financial bloggers or influencers who talk about money management or investing. Another innovative approach involves educating younger audiences. Introducing children to financial literacy can foster an early understanding of money management and set a foundation for responsible financial habits later in life.
With affiliate marketing, your partners introduce your products, like credit cards or personal loans, to new customers. (And explain how using them can help reach personal or business goals.) For example, an affiliate might write a guide on improving credit scores and include an affiliate link to your product. When readers sign up, the affiliate earns a commission. And since you only pay commission if they get sales, you can expand your reach while keeping costs low.
Just be sure to set clear rules for your partners — and get it in writing. Use tracking tools to monitor efforts and make sure they’re staying within regulations.
WHICH FINANCIAL INSTITUTIONS USE AFFILIATE MARKETING FOR GROWTH INITIATIVES?
Several well-known financial institutions use affiliate marketing for brand growth:
Here are some examples:
- American Express: This affiliate program focuses on promoting credit cards and offers commissions for successful referrals.
- Chase: Chase works with affiliates to market credit cards and other banking products.
- CIT Bank: This bank uses affiliate marketing to push its savings, money market accounts, and high-yield savings accounts.
- Discover: With its referral program, Discover promotes its credit cards to niche audiences.
- SoFi: SoFi uses affiliate marketing to promote its range of financial products, from personal loans to investment accounts.
- Brex: Brex targets startups and growing businesses through its affiliate program. It offers commissions for its corporate cards and financial services.
This is proof that affiliate marketing helps regulated financial institutions expand their reach and customer acquisition rates.
7 UNIQUE WAYS FINANCIAL INSTITUTIONS CAN USE AFFILIATE MARKETING TO DRIVE GROWTH
Affiliate marketing can go beyond basic partnerships. Here are seven hyper-specific ways your financial institution can inspire real growth in a regulated market:
1. TARGET NICHE FINANCIAL BLOGGERS FOR HIGH-CONVERSION CONTENT
Partner with bloggers who focus on specific financial niches and products. For example, business loan advice, retirement investments, or personal loans.
Niche bloggers have loyal audiences and can create personalized reviews or guides about your financial products. With this information in hand, readers can skip the manual research they’d have to do on their own. Helpful content (and shortcuts) like this can inspire higher engagement and conversion rates.
2. OFFER TIERED COMMISSIONS FOR HIGH-VALUE PRODUCTS
Tier your commission rates based on the financial product your partners promote. For example, offer higher commissions for affiliates who bring in leads for premium products — like brokerage accounts or wealth management services.
This incentivizes affiliates to push higher-margin services. Since you’ll get better conversions and they’ll boost their affiliate income, it’s a win-win. (Which is a must in any successful partnership.)
3. CREATE PERSONALIZED CO-BRANDED LANDING PAGES
Work with your affiliates to design co-branded landing pages tailored to their specific audiences. Include custom calls-to-action (CTA) that speak directly to their followers.
For example, if the affiliate specializes in business management, use a CTA like “Apply for a corporate card now.” If their niche is in savings and investments, try a CTA like “Open your high-yield savings account.”
This encourages qualified leads who’ve made it this far in the funnel to take the next step.
4. LEVERAGE FINANCIAL INFLUENCERS IN COMPLIANCE CONTENT
Collaborate with financial influencers who can create educational content around complex regulatory topics. For instance, they could explain the benefits of FDIC insurance. Or help demystify investment platform regulations.
Affiliates who simplify these topics build trust with your audience. This is also a smart way to promote compliance while attracting leads to your financial services.
5. EXCLUSIVE REFERRAL OFFERS FOR ULTRA-NICHE PRODUCTS
If your financial institution offers ultra-niche products like NFTs or crypto, create special offers for affiliates who work in these niches. Affiliates can promote exclusive services or personalized financial advice.
This helps you build relationships with target audiences in competitive spaces. It also helps position your brand as an authority.
6. LAUNCH A B2B AFFILIATE PROGRAM FOR PROFESSIONAL SERVICES
Target professional services companies, like accountants, consultants, and legal firms, that serve businesses. They can refer clients to your corporate financial products, such as business loan options or treasury management services.
B2B relationships rely on trust. So affiliates in this space are ideal for generating high-quality leads.
7. DEVELOP AFFILIATE-DRIVEN FINANCIAL WEBINARS
Work with affiliates to co-host webinars on financial topics like tax strategies, retirement planning, or the latest trends in the financial market. Affiliates can drive traffic to these webinars to attract potential clients for your financial products. You provide the expertise, and your affiliates help you reach a wider audience.
*Pro-Tip: Gate your webinar invites to collect email addresses. Weave your webinars into your sales funnel.
WRAP UP
Affiliate marketing offers financial institutions in regulated markets a way to expand their reach and grow their customer base without breaking the bank. 😉
With smart collaborations, tailored content, and clear compliance guidelines, you can tap into this marketing strategy to drive real growth.
Want to launch an affiliate marketing program for your financial institution? Check out GoAffPro to get started today.
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