How Inclusive Marketing Can Help Banks Reach the Unbanked
Having a safe space to stash your cash is important. Financial institutions like banks and credit unions have long fulfilled this role by offering secure and reliable ways to safeguard your funds. As of 2023, 96% of U.S. households had a bank account, leaving approximately 5.6 million unbanked. Among them, Black, Hispanic, and Native American communities are disproportionately represented. While the lack of funds was the primary concern for this group, a lack of trust ranked second. Inclusive marketing provides banks and credit unions with a unique opportunity to engage unbanked households, not only to grow deposits but also to increase financial literacy, an essential step toward closing the wealth gap.
What is Inclusive Marketing
Inclusive marketing is a methodology that ensures marketing efforts authentically reflect and resonate with diverse audiences. This includes genuine representation, such as featuring individuals from various backgrounds and abilities and sharing their authentic stories while actively avoiding tokenism, stereotypes, and misrepresentation. It also involves accessibility measures such as alt text, captions, and accessible website design. Inclusive marketing prioritizes diverse voices at every stage of the process, ensuring inclusivity from strategy to execution.
Community banks are uniquely positioned to serve local communities, allowing them to build strong, personal relationships. Their understanding of local needs and community dynamics enables them to customize financial solutions more effectively. However, having a bank in the neighborhood doesn’t automatically build trust or encourage foot traffic. That’s where inclusive marketing steps in.
Engage Communities Outside the Bank
Overcoming trust issues requires intentionality and creative thinking. Authentic community engagement means being present where it truly matters. This goes beyond opening branches to actively engaging the community through local events, sponsoring initiatives benefiting underserved groups, and engaging with community leaders. Doing this consistently over time is critical in building trust with prospective customers and establishing those coveted long-term banking relationships.
Large bank programs like Wells Fargo’s Banking Inclusion Initiative (BII), with its collaboration with financial empowerment nonprofit Operation HOPE, increase access to affordable banking and provide financial education for underserved communities. But, these types of programs are not exclusive to large banks. Community banks can also play a pivotal role by providing financial literacy workshops in partnership with local schools and community centers, churches, sororities and fraternities, and other civic groups. Hosting branch open houses and even community tailgates can further strengthen relationships and build trust within the community.
Remember, many individuals who are unbanked may come from generations of financial exclusion. So, it’s not just trust you’re dealing with. You’re also helping them overcome fear and any shame associated with being unfamiliar with the banking process. How you approach this challenge is an important step in your inclusive marketing strategy. If your audience isn’t coming to you, it’s time to meet them where they are.
Build a Diverse and Inclusive Banking Team
The journey toward inclusivity begins within. Building cultural intelligence to understand the needs of unbanked communities begins with assembling a diverse, inclusive team that can recognize the needs. Consumers prefer to engage with banks where the staff reflects their community’s diversity. So, make every effort to hire employees (bilingual, if needed) from the community. Also, consider establishing advisory councils comprised of community members. Taking these steps can help ensure culturally sensitive decision-making.
And don’t underestimate the power of storytelling. A diverse team brings with it varied experiences into the bank’s operations that could resonate with prospective customers, putting them at ease. While many banks hire a Director of Community Engagement to facilitate these initiatives, cultivating an inclusive environment is a collective effort. Every employee has a role.
Craft Marketing that Reflects Your Audience
Increasing visibility in the community and building a diverse team gives banks the tools to communicate that quality banking services are accessible to all. Community banks must ensure their marketing authentically mirrors their target audiences, highlighting real lived experiences. When campaigns resonate with diverse demographic segments, they make the bank more approachable, credible, and trustworthy. For example, share the journeys of first-time bank account holders or individuals making their first mortgage payment—these real-life experiences create meaningful connections and reinforce the bank’s commitment to financial inclusion.
Closing Thought
Inclusive marketing isn’t just an ethical choice—it’s a strategic approach to growing bank deposits. By engaging unbanked communities in a meaningful and respectful way, banks can build trust over time and expand their customer base. This approach not only fosters financial inclusion but also positions banks to thrive in an increasingly diverse and competitive marketplace.
