Finance & Investment Marketing: Module 1

• Banking, Finance, and Investment Marketing are the focus.
• Coverage area is Prelims 2024-2025.

Module 1: Marketing Management Across Finance & Investment Environment (Part 1)

• Easy bank recognition exists due to logos, mostly blue or red, for competitive reasons.

Nature of Most Financial Institutions

• Volume, impact, and dependence are the nature
• Banks have a significant physical presence.
• Expansion opportunities are almost limitless due to the unique commodity offered.
• Bank opening locations are usually near homes or workplaces.
• BDO leads in accessibility, located in malls with parking and ATMs.
• Kantar reported 61% of ad seconds are sold on mainstream TV by the top two.
• VHF networks in Metro Manila were purchased by financial institutions.
• Social and Facebook blueprints report accelerated SEO revenues, with 47% from financial institutions.
• Finance-related institutions serve as a major pillar for promotions/advertising.
• Banking/investments are tradable under unique circumstances.
• Influencers must associate with brands, with contracts limiting endorsements of other brands for years.

Dependence

• 97% of all payroll (salaries) are paid via banking services.
• Full cashless payment migration moved to 2024 projection with goals for 100% adhesion by 2027.
• By 2022, 100% of government service fees and registrations are going through bank infrastructure transfers.
• You cannot avoid using bank accounts

Unit 1: Understanding Investment

• Tangible products have immediate benefits.
• Financial services are mostly non-applicable for tangible products.
• Money is not a tangible product

Investment

• A monetary asset purchased with the idea of providing income in the future or sold at a higher price for profit.
• Money is placed somewhere with expectations it will grow and be cared for by institutions.

Challenge of Investment

• Selling something that cannot be enjoyed right away.
• Involves the highest form of delayed gratification.
• Exposed to risk.

Assets

• Assets have proof of ownership registered under national level authority.
• Governments buy certain institutions.
• Examples include houses with certificates title/land registration and proof of ownership.
• Phones are not assets, receipts are just proof of sale, they lack ownership.
• Jewellery can be an asset registered with proof of ownership, especially in mainstream shops

Financial Literacy

• It is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing.

Want to Get Rich

• Science suggests the key to success lies in personality traits, rich people tend to be extroverted and conscientious.
• Rich people are emotionally stable, less neurotic and self-centered.

Understanding Investment Part 2

Customer Lifetime Value

• Is the net profit contribution of a customer to the firm over time.
• It focuses on the life/stay of your customer in your company.

Notes From Discussion

• Savings accounts have and/or option where both parties must agree on usage.
• Auto loans are a more convenient way to purchase a car.
• Checking accounts are proof that you would pay afterwards.
• Housing loans are needed to own a home.
• There is jumpstart.
• Time deposit rates are not priority unless all the basic needs are already provided.

Financial Institutions

Extended Relationships

• Influence from bank managers can be helpful.
• Their role is to make it easier for customers.
• The continuous marketing is a must for financial institutions

Cooperative Risk Sharing / Pooling

• It is a universal guiding principle for any financial systems.

• No single unit can exist by itself.

• Everyone earns differently and is exposed to different levels of risk.

• Money circulates, requiring pooling of finances to maximize value.

• Universal guiding principle- no single unit can exist over itself.

• A pool of money is needed so it could be invested with a higher interest rate.

• Sharing or pooling money creates a cumulative fund with continuous marketing.

• Banks increase money value over time through lending with interest and investing through stocks.

• Higher investments mean higher risk.

• Depositors must be equal to or more than the borrowers to gain.

Gain

• Gains or earnings defined as accumulation of investment/asset value.
• You cannot gain without an initial cash outlay directed towards investing.
• You don't gain your salary, it is earned.
• Savings deposits don't earn interest income; it gains its value as it grows.

Loss

• Loss is defined as reduction or decimation of an asset/investment instrument's value.
• Loss is contingent upon initial outlay of resources directed towards investment.
• Do not lose your salary, you spend it or it may get stolen.
• Time deposit account may lose some of its value due to inflation.
• Yes, there is chance that a bank can become bankrupt, such as LBC Bank in the Philippines.

Brand Asset Valuator

• Measures differentiation, relevance, esteem, and knowledge.
• Focuses on brand strength and brand stature.

Brand Personality

• Sincerity includes down-to-earth, honest, and cheerful brands
• Excitement includes daring, spirited, and imaginative brands.
• Competence includes reliable, intelligent, and successful brands.
• Sophistication includes upscale and charming brands.
• Ruggedness includes tough and outdoorsy brands.
• The text highlights you can have same brand, same personality.

Two Important Things in Investment Banking

• Competence is the most important brand personality concept when managing money.
• Convenience is an important branding element providing all of a client's needs.

Brand Elements

• Logos and slogans/taglines are important.
• Taglines advertise the brand as a whole and should be consistent.
• Slogans involve PR for product changing.
• Colors, usually blue or red, signify trust and competence.
• Typography/font and brand name are vital with voice and tone.
• Message influences people.
• All elements must be consistent.
• Thoughts affect emotions, which translate to behavior.
• The expectancy satisfaction theory is important.

Ultimate Positioning Tagline Rules for Financial Institutions

• Taglines should be empathic.
• Should project consumer confidence.
• Need to build rapport: examples include, Metrobank "You're in good hands” (confidence)
• BDO "We Find Ways" & BPI “Let's make it easy" (empathic).

Ultimate Positioning Statement Rules

• Ease of pronunciation is a must with symmetry and should offer instant Education.

Brand Resonance Model

• Focuses on brand performance and imagery with judgments and feelings.

A Strong Financial Brand Name Suggests

• Strength, energy, reliability, and familiarity.

Requirements of a Good Brand Name include:

• Compatibility with competitive offerings and alignment with the company mission.
• Memorability (acronyms/abbreviations) and ease of recall.

Positioning Tagline/Statement of Banks:

• UnionBank: "The future starts with U."
• RobinsonsBank: "Your future is bright."
• ChinaBank: "Easy banking for you."
• MayBank: "Explore banking that puts you first."
• VeteransBank: “A bank with a heart for every Filipino”
• PBB: "Making things happen... today!"

Negotiable Instrument

• A financial instrument transfers value between owners
• It differs due to "time lapse" which affects instruments actual or intrinsic value.
• Time lapse: period between check creation & encashment
• It is primarily, a future payment tool.
• Time is crucial to the validity of negotiable instruments.

Understanding Investment Part 3

• Strength includes benefits/features/taste/components.
• Finance is the actual monetary equivalent.

Acquisition Value

• Is the amount paid to purchase a product

Actual Value

• Is the amount used to produce that product

Market Value

• Is the range of amount of the product

Intrinsic Value

• Is the asset value based on underlying perception.

• It is used often in Investment Marketing, it may differ from the actual market value.

• subjective to emotional factors.

• Cell phone example: acquisition at P72,000. Then in a concert, Katy Perry touched it, and fans now pay P180,000.

Where Can We Open An Account to Have Stocks

• First Metro Securities (Initial 2.5K)
• COL Financials (Min 5k)
• Adoro???? ($15)

Effects of Intrinsic Value

• Current Value is Greater than Intrinsic Value = Over Valued
• Current Value is Lesser than Intrinsic Value = Under Valued

Appreciation vs Depreciation

• Appreciation increases the value of an asset over time.
• Depreciation decreases the value of an asset over time.

Buyer's Market

• Market where supply is higher than demand
• More homes linger on the market, competition is higher, negotiation is possible, best time to buy a house.

Seller's Market

• Market where demand is higher than supply.
• Real inventory is low so to buyers pay more, sellers can hike fees, its important time.

Unit 2: Survey of the Industry – Bank (Part 1)

Classification of Banks:

• Includes universal, commercial, cooperative, rural, thrift, Islamic, and government banks.

Universal Bank

• Offers comprehensive financial services, including commercial and investment banking.
• Wider service assortment, reach, investment products

Commercial Bank

• Financial institutions that accepts deposits, offers checking account services, makes loans, and offers basic products.

Universal and Commercial Banks

• Are the dominant group with 70% of banking system resources
• Data released every September

Under the General Banking Law of 2000 (GBL):

• Ordinary commercial banks lack such authority.

• Commercial banks need additional authority to do more.

• Financial allied enterprises of a universal bank are leasing, banks, investment houses, financing companies, credit card companies.

• Financial institutions can cater to small and medium-sized industries.

• Companies engaged in stock brokerage, securities dealership, foreign exchange dealership/brokerage.

• Insurance companies and holding companies investing in allied/non-allied enterprises are also part of it.

• BSP, the Philippine central bank, ensures control of 60% banking assets by domestic banks majority-owned by Filipinos. 60% local, 40% international.

Cooperative Bank

• Provides personal banking services (current accounts, credit cards, loans, savings, etc.).
• Organized/owned by cooperatives/federations with lending.
• The term Cooperative indicates a group of people/belief.

Rural Bank

• Banking services for small, rural communities with deep roots.
• R.A. No. 7353, more on rural areas for the role to promote their econ.

Rural Banks Functions

• Promote/expand rural economy effectively, provide communities with basic financial services, aid farmers and the stages to market their products
• They are privately owned.

Thrift Bank

• Specializes in savings accounts and mortgages for consumers.

Republic Act (R.A.) No. 7906:

• Savings and loans

Savings & Loans

• They are more for savings than universal banks

• Made up of savings and mortgage banks, private development banks, loan associations, microfinance thrift banks.

• Engaged in savings accumulation from depositors and there investment.

• It is a type of business.

• They are an islamic bank or shariah

Shariah

Islamic law that governs certain principles.

• It is a religious law and for spiritual, mental, and physical behaviors that Muslims must follow.

• Command Regarded.

• Islamic code.

• No interest.

Government Bank

• A public bank, a financial institution, in which a state, municipality, or public actors are the owners. Bank.
• DBP and Landbank.

BSP Licensed Digital Banks in the PH

• Go Tyme Bank
• Maya
• OFBank
• Tonik
• Union Digital Bank
• UNO Digital Bank

OF Bank

• Overseas Filipino Bank, licensed to the Land Bank of the Philippines since March 25, 2021.
• Offers DOBASI to allow real time opening.
• It it the first for digital only purposes.
• Targets OFWs.

Tonik Bank

• Licensed to operate on June 3, 2021.
• Singaporean company that focuses on product development and digital technology
• Its operations are conducted by Tonik Digital Bank.
• Offers 6% saving , solo stashes, and physical debit cards
• It has 4% under the locals and 4.5% rate.

UNO Digital Bank

• Formerly known as UNObank
• Got its license on June 3, 2021.
• Al using face recognition is needed.

Savings & Insurance

• Medical
• Covid 19
• Cash on loans

Union Digital Bank

• Union Digital is a subsidiary of UnionBank and got its license on July 15, 2021.

Go Tyme bank

• It secured 900 funds
• No taff only automated banking

Cheque / Check Terms include:

• Includes stale, crossed, endorsed, re-discounted, DAIF and DACA.

Stale

• A check more than 6 months in date.

Grossed check

• Exclusively for deposit with 2 line across

Endorsed Check

• Transferred from what was written.
• They can not longer be apply.

Re Discounted Check

• Done before
• Its not longer what was shown

DAIF

• Has little money / funds

DADA

• Wa a point, a closed case

Primeipal Agirbutes

• The assets

Title

• The evidents for the transferrable amount.

FInacning

• Consumpptip / Payment
• Channels

The Banking structure

• BUsines & Customer Portfoliio

ASSETS

• Its the volume of finds

• Its what make for the maintng of the balance on acouns

A Savings Acount

• In cheqie and time dipssit
• Waitin

FIntermedaries

• The funds betww firms.in ythe mddle so its
• Local and innterraionale

Interest Rate

• Measurss the rates betwwo

O Social

• Buls onn social edia

Socialization

• Lock your money

Data Mining

• The data is a way for hwo you us the cars

Risk

• the harm and the eposo

The Proding

• It the heeds and the data

Cumuattive

• Investor and funds

Mechsim

• For fraud

A day In The Life

• Salary

The Ty[ee

• Traqdiaton and Livong benfits

Lving bennfits

The future

Srvtyhe

• Bankngs in 1 its homergous

the team

Customer

• It where customer are