London, 28 November, 2024 - Over the past decade, the financial services landscape has changed dramatically — driven in no small part by digital transformation and the rise of FinTech — and we’ve seen an evolution in the needs and participation levels of retail traders and private investors.
I recently marked my three-year anniversary at OANDA, which feels like a fitting time to reflect on how I’ve seen our space evolve over the years and the challenges facing today’s marketing leaders in financial services.
From product-first to client-first
Financial services, and online trading in particular, remains very product-led. But at the same time, financial products have become increasingly commoditised and less differentiated — making it much more challenging for brands to stand out for their offering alone. Instead, clients now place a greater value on brand perception and experiences, and have far higher expectations of brokers and other providers as a result.
For today’s CMO, there is now a real need to be able to react to this changing client demand. Brands must be equipped to evolve alongside clients in order to stay relevant and to stand out from competitors. In the client-first landscape, the most effective marketing and product strategies are those driven by genuine client insights.
For instance, we recently re-shaped some of the elements of our OANDA Prop Trader offering — in which aspiring traders of all levels can pass a challenge to become signal providers to our proprietary trading business. We added a lower-cost entry point for those traders more sensitive to price and removed the need to complete the challenge within a certain time constraint. Both of these changes were implemented in response to client feedback, and have made the product more accessible while maintaining high profit-sharing — ultimately giving traders a better deal with less risk.
Meanwhile, when it comes to Contract for Differences (CFDs) trading, our target is the experienced retail trader who wants to participate in global financial markets using leveraged products. Based on insights into this customer profile, our marketing approach for this group centres on the quality of the trading experience and highlighting market opportunities, with a focus on simplicity, accessibility, and the flexibility of trading with smaller investments. Education and client support are crucial here, so an offering that includes platform tutorials, market webinars, risk management strategies, and effective client relations provides the deep insights that our clients are looking for.
Brands need to work harder — and smarter
With a greater need to stand out in the market, it's more important than ever for CMOs to focus on brand awareness, consideration, and uniqueness. Within financial services, brands face the challenge of needing to differentiate while still coming across as trustworthy — for us, standing out has to be achieved in a considered way. There has been an industry-wide shift towards providing more customised information for the client, such as tools and educational content, but there is also a challenge in doing so within the regulatory framework.
One of the things I’ve been relentlessly driving at OANDA is using research and data to identify what our clients want: powerful insights that drive better decision-making. In line with this, we launched our ‘Smarter Trading’ brand proposition, which positions us as a broker that empowers clients to trade better, while also injecting personality into our brand — an approach that has led to a significant increase in both consideration, awareness and new client growth.
We’ve also seen great impact by harnessing strategic brand partnerships that are driven by shared values. There is a strong relationship between the fast-paced, high pressure space where traders operate, and the world of adrenaline and performance in sports. We recognised this and partnered with both the New York Red Bulls and footballer Robert Lewandowski as a brand ambassador. These partnerships are underpinned by a shared mindset of commitment to reaching peak performance, and have helped us create localised connections with our clients and generate global amplification of our brand. As a result, our brand awareness metrics have doubled in the US alone, and we significantly improved our ROI on our overall marketing spend globally.
What does this mean for today’s CMO?
A decade ago, you’d typically see CMOs with a clearly defined specialty, whether that was branding, proposition, Customer Relationship Management (CRM) or performance marketing. But today, a CMO in our industry can’t just be good at one thing; instead, CMOs need a broad knowledge base that spans brand, strategic innovation (including how to harness technology and AI), and customer insights.
The best marketing leaders right now don't just have a strong grasp of these key pillars, but have a deep understanding of how they each intersect and which levers to pull, and when. Navigating this fast-paced environment is no easy feat — think of the challenges of increasing regulation and striving for innovation while also maintaining trust. However, by embracing the changes we’ve seen and continually adapting, we can drive growth and keep the client at the centre.
For my part, what excites me the most about the future is the pace of the evolution of data, content, and client experiences that will drive commercial growth, while maximising brand equity for those who throttle their capability and lean into this broad knowledge-based way of operating as the modern CMO.
By Darren Moffett, Global Chief Marketing Officer
