Russian Market: Marketing Strategies for Financial Companies and Banks

According to the Quarter Billion Agency Group blog, the ongoing crisis in Russia and the imposition of sanctions on Russian banks by Western nations are generating advantageous circumstances for foreign banks and financial companies to penetrate the Russian market. This is primarily attributed to the significant level of trust the Russian population places in foreign banks. The blog discusses the most effective strategies and tools for a financial company to employ when entering the Russian market.

In recent years, the financial services market in Russia has experienced significant instability and, to be frank, it has failed to garner a high level of trust among the population. This lack of trust can be attributed to various factors, such as a substantial depreciation of the national currency by almost twofold against the dollar and the euro in 2014, a setback from which the ruble has yet to fully recover. Furthermore, the increased intervention of the Central Bank of Russia, which has revoked licenses from numerous Russian banks (93 banks in 2015 and 97 banks in 2016), has further eroded confidence. While these measures are undoubtedly important and necessary for improving the country’s financial system, they contribute to undermining the general trust in banks from the perspective of ordinary consumers.

Consequently, Russian consumers currently place their trust in primarily two types of banks: those with state involvement or strong connections to influential Russian figures, as well as foreign banks. However, due to the events of 2014, several state-owned banks have been subjected to sanctions by Western nations, making them less attractive to many individuals. As a result, foreign banks have emerged as the most dependable option for Russian clients. It is important to note, however, that foreign banks are not permitted to establish branches in Russia and must operate solely through subsidiaries that fully comply with the legislation of the Russian Federation.

Define your target demographic

When initially entering the Russian market, it is crucial to establish the target customer segment that your bank or financial company intends to serve. Primarily, this involves distinguishing between corporate clients and individuals. Corporate clients can further be categorized as either Russian or foreign entities. Many foreign banks choose to commence their operations in Russia by catering to companies from their home country engaged in business activities there, while Russian companies operating in the bank’s home country may also follow a similar approach. This approach was exemplified by the Swedish bank, Swedbank.

If your bank specializes in providing services to individuals, it becomes essential to identify the age and behavioral characteristics of potential clients in Russia. These factors will determine the most effective channels for promoting your services. For instance, younger audiences are receptive to mobile advertising and social media marketing tools, whereas the older generation is more responsive to traditional advertising through media outlets.

Promotion through media outlets

In Russia, advertising through media remains the most impactful and costly method for promoting financial services. Depending on the nature of the services and the intended audience, advertising can be strategically placed across various types of media. For instance, when initially entering the Russian market, television advertising proves to be the most effective as it reaches a wide audience. Radio advertising, on the other hand, is better suited for situations where the brand is already established in the consumer’s mind, or when promoting specific bank products or expanding presence in a particular city. For financial organizations targeting corporate clients and affluent individuals, advertising in business print media and magazines aimed at top-level managers is highly relevant. Additionally, leveraging native advertising can be beneficial for promoting financial institutions or banks.

PR tools

When promoting a bank in the Russian market, implementing public relations (PR) practices becomes relevant. The primary objective of PR within a bank is to elucidate the social role of the banking industry. The bank carries a responsibility towards the society in which it operates. PR encompasses several areas, including promoting educational opportunities for young people, engaging in charitable initiatives to support the underprivileged, fostering creative endeavors in culture and art, and contributing to environmental protection and better living conditions. A range of diverse PR tools can be employed:

• Organizing press conferences, presentations, and symposia.
• Engaging in effective communication with the media.
• Managing and enhancing the bank’s image and reputation among existing and potential customers.
• Implementing internal PR strategies within the organization.
• Participating in various public and charitable activities.
• Engaging in lobbying efforts.

Advertising in outdoor spaces

To leave a lasting impression on Russian consumers, utilizing outdoor advertising proves to be advantageous. It remains a dependable method for enhancing brand visibility. Employing billboards along the streets and outdoor advertising within bustling areas like airports, stations, and shopping centers proves beneficial. As a matter of fact, we have previously discussed advertising in Russian airports.

Direct Marketing

Direct marketing is commonly employed in two scenarios: collaborating with corporate clients and advertising loan offers to the general public. In both instances, methods such as email marketing, telemarketing, and direct communication with customers are employed. Additionally, for individual promotion, SMS mailings can be utilized, often by including promotional messages within free newsletters covering topics such as weather updates, horoscopes, billboards, and more.

Digital-marketing

Digital marketing serves as a powerful tool for promoting financial services. A crucial aspect of digital marketing tools is their ability to target specific audiences based on factors such as gender, age, geolocation, and interests. This encompasses various techniques such as internet banner advertising, mobile advertising, targeted social media advertising, and particularly, contextual advertising, which ensures precise targeting of the desired audience.

Revamping Social Network Promotions

Furthermore, to capture the attention of a youthful audience, it is crucial to actively engage with your brand on Russian social networks, specifically Vkontakte, Odnoklassniki, and Facebook. Merely having a presence on these platforms is insufficient; it is imperative to establish groups where your existing and potential customers can readily access pertinent information about your bank’s operations, services, and related matters.

Moreover, it would be advantageous for your social networks to serve as more than just a means of communication with customers; they should also serve as a valuable source of useful or intriguing content. Incorporating content marketing strategies is highly recommended. Consider starting a blog or incorporating themed and humorous content that entertains your subscribers.

Influencer Marketing can prove beneficial, particularly when focused on endorsing specific financial products such as deposits, loans, and more, rather than promoting the entire brand. When pursuing this approach, it is crucial to carefully select the appropriate influencer whose audience primarily comprises financially independent adults proficient in managing their finances.

Currently, foreign banks hold significant trust among the Russian population. When entering the Russian market, banks and financial institutions have access to a wide array of tools. Advertising in Russian media stands out as a primary approach, alongside the effective utilization of PR tools, outdoor advertising, and social media promotion. The experts at Quarter Billion Agency Group specialize in guiding foreign banks and financial companies through the process of successfully entering the Russian market.