Financial Services
June 27, 2023

Financial Services Lead Generation: Ten Ways to Convert Prospects to Clients

Financial Services Lead Generation

In this blog post, we will explore the art of lead generation in financial services, uncovering proven strategies and techniques to drive sustainable business growth. We will delve into the key principles that empower financial service providers to generate a steady stream of qualified leads. 




What is Lead Generation?

Lead generation in the financial services industry involves attracting and capturing potential customers who are interested in financial products or services. Lead generation involves a range of creative marketing and sales strategies. Each of these are aimed at identifying and nurturing potential paying customers, whether that's individuals or businesses.

The ultimate goal of lead generation is to create a list of highly qualified leads who have at some point in interactions with them, expressed genuine interest or intent in your product or service. Leads typically give their contact information, including their name, email address, phone number, and other relevant details that allow you to follow up and engage with them further down the line. 

The Role of Lead Generation in the Financial Sector

Lead generation provides financial institutions with valuable market research and data insights. Through the analysis of lead information and engagement patterns, institutions gain a deeper understanding of their target audience, are able to identify trends, and refine their marketing strategies.

What’s more, lead generation encourages financial institutions to tailor their marketing efforts to specific audiences. Personalised marketing campaigns are necessary to understand the needs, preferences, and financial goals of potential leads.  

That’s exactly how lead generation helps you identify potential customers and categorise them into different segments, based on additional information, such as income levels or investment preferences. The role of lead generation is to ultimately attract and convert qualified leads, in order to increase sales and revenue.


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Benefits of Generating High-quality Leads for Financial Service Providers 

Generating high-quality leads is of utmost importance for financial service providers for several reasons. By conducting thorough research and ensuring that leads have a genuine interest in your products or services, you naturally enhance the likelihood of successful conversions.

Continuously implementing this process allows you to fine-tune your marketing strategies, leading to better return on investment (ROI) in your marketing and sales efforts. As a result, customer lifetime value also increases as you gain a better understanding of which segments are more likely to remain loyal to your business for extended periods of time.

Increased conversion rates

High-quality leads are more likely to convert into paying customers due to a genuine interest and need in the financial services you offer. Naturally, this makes leads more open and receptive in their initial engagements with your brand.

The conversion rates from leads to customers increase, resulting in more success for sales teams, 34% of whom claim lead conversions is their biggest challenge. 


Improved ROI 

Generating high-quality leads is crucial for achieving a better return on ROI. These leads are more likely to convert, resulting in more successful marketing and sales efforts. Therefore, financial services providers can effectively allocate their resources by prioritising the generation of quality leads. This will instantly help you avoid wasting time and resources on uninterested or unqualified prospects.



Higher lifetime value 

High-quality leads result in significant long-term engagement and repeat business. That's because qualified leads are more inclined to try out your other products or services when they need them, as long as you've kept them satisfied and treated them fairly. Which if that's the case, they'll also refer friends, family and colleagues who may have similar needs.

As a result, the customer's lifetime value increases as they generate more revenue over an extended period. You can capitalise on this opportunity by further developing and personalising relevant services that cater to the evolving needs of your most valuable customers.


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Challenges and Opportunities of Generating High Quality Leads in Financial Services

Generating leads is the lifeblood of any successful business. And like any business in most sectors, for financial services, lead generation comes with its own unique challenges and opportunities. Let's take a look at some challenges first. 


Generating leads for financial services is a complex and challenging task. Financial services providers must navigate compliance regulations, differentiate their offerings, target the right audience, build trust with consumers, address data privacy concerns, manage costs, simplify complex concepts, and stay up to date with ever-changing consumer behaviours.

For further challenges and trends visit: 10 Trends Defining Growth for Financial Services Businesses


Compliance and industry regulations 

Targeting the right audience in marketing is all the more harder for financial service providers. They are subject to various regulations, each of which have their own compliance requirements. For example, anti-money laundering (AML), know your customer (KYC) rules, and the FCA’s Consumer Duty in the UK.   

Adhering to all of these regulations is time-consuming and extremely complex. On the surface they help financial services confirm the identities of their clients. Yet, these necessary checks and security procedures do nothing to make the onboarding process frictionless.


Low consumer trust and credibility of financial services

The problem of industry regulations become more apparent when we look at it through a lens of consumer trust and brand credibility. Consumer trust is at an all time low towards financial service providers.

A podcast by Forrester claims that just 2% of consumers voted their trust as strong towards financial services.. 

It’s due to this low consumer trust that people are often hesitant to provide personal details. That'a serious problem when generating leads. Financial services providers need personal details in order to nurture potential customers and qualify leads properly. 

Highly competitive market 

Financial services operate in a highly competitive market. Particularly now with the rise of digital, innovative competitors like Fintech companies. An increasing number of consumers have adopted Fintech solutions since the last decade. That number is only going to rise as technology improves, becoming more convenient and streamlined, and consumers realise the privacy from government and generous interest rates that challenger banks and FinTech companies provide.  

Even traditional financial services are making noise with their overhauled marketing strategies. As the industry is beginning to recognise that consumers more than anything want enhanced, personalised experiences.

A report by Econsultancy surveyed 700 industry leading experts. Over a quarter of them agreed that CX and optimising the customer journey with personalised experiences would be significantly important.

Stiff competition makes standing out and catching the attention of the right leads all that much more challenging. Since numerous competitors will also be vying for the same leads that your business wants to attract. Financial services must therefore create a strategy that helps them differentiate and engage customers in a saturated market. 

Creating a working qualification process 

All the leads that your marketing and sales teams speak to won’t be equal. Although some may show genuine interest in your products, identifying and converting customers who have the potential to pay for them is a whole different story. 

Hence why it’s important to have a working qualification strategy or process. Without one, your marketing and sales teams could be barking up the wrong tree and wasting time interacting with poorly qualified leads. Plus, it makes accurate lead  qualification even more complex when  already see it as their biggest challenge. 

Lead nurturing in financial services takes time due to longer sales cycles, complex decision-making processes, and regulations. Therefore, to keep those conversion rates up, financial service companies need a functioning qualification process in place. 


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To overcome these obstacles and achieve business growth, you must adopt a strategic and adaptable approach. Generating high-quality leads in the financial sector is particularly challenging due to the above challenges. Equally, there's several opportunities to employ effective strategies that attract the right leads to your financial firm. 

Building a customer base

Lead generation plays a crucial role in establishing a strong customer base. By capturing contact information and effectively engaging potential leads, you gain a perfect opportunity to foster relationships and guide them through the sales process. This ultimately results in the acquisition of new customers who have a genuine interest in the financial products and services being offered.

Relationship building and trust

Lead generation provides financial institutions a chance create strong connections and establish trust with potential customers. When you actively engage and communicate with leads, there's opportunity to educate consumers. Educational content is the next big push in the finance sector.

You instantly build trust and position yourself as a responsible firm by providing leads with valuable information and advice. Trust is a critical factor in the financial sector, as customers heavily rely on the credibility and expertise of financial institutions when making important financial decisions.

Upselling and cross-selling opportunities

Financial institutions will also uncover potential upselling and cross-selling opportunities. Understanding the needs and preferences of leads, you can offer additional financial products or services that align with their financial goals. This of course increases the lifetime value of the customer but it also fosters long-term relationships with them; which may result in future referrals and improve brand equity with positive online reviews.

One way to achieve this is through loyalty and reward programmes. Conditional rewards and incentives can be triggered to encourage a customer action e.g sign up for this policy and receive 'x' reward.

Referrals and word-of-mouth marketing

Leads for financial services can become potential clients through the use of referral programmes. The fact that referral programmes are based on the idea that people are more likely to trust recommendations from someone they know, is particularly important for financial services. As they often score lowest in consumer trust (such as in the Endelman Trust Barometer where financial services scored second to last after social media). 

It’s for this reason why referral programmes lead to higher qualified leads. There’s more chance of someone converting to a paying customer when they trust the recommendations of someone they know.

For example, 82% of small businesses say referrals are their main source of new business. 

Similarly, according to Forbes, a majority of marketers agree that referral programmes generate a high volume of excellent leads at a much lower cost-per-lead compared to other channels.


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10 tips for generating high-converting leads for financial services

Always remember to consistently assess and enhance your lead generation strategies using data and feedback. Continually refine your messaging, targeting, and tactics in order to boost the conversion rates and quality of leads generated for your financial services. Here, we present to you 10 invaluable tips for generating high-converting leads specifically tailored for the financial sector.

1) Define your target audience 

Factors such as demographics, income levels, financial goals and investment preferences help you to define your target audience. Tailor your marketing efforts and messaging to these specific identity points in order to resonate with ideal customers.


2) Develop compelling value propositions

You need to demonstrate and communicate how your financial services meet the unique needs, challenges and objectives of potential customers. The best way to do this is to effectively convey the advantages and benefits that leads should expect to receive if they choose your services. 

By doing this, you give them insight into the distinctive value of your firm. This will help you to stand out from competitors as it highlights your expertise, experience and specialised solutions.



3) Optimise Your Website for Lead Generation

Your website should be designed in a way that’s user-friendly and visually enticing, with a clear focus on generating leads. Therefore, you need to incorporate compelling calls-to-action (CTAs), and these should be strategically placed throughout your website. CTAs should include contact forms, consultation requests, or options for subscribing to newsletters and accessing educational content.


4) Create Informative and Educational Content

Aim to produce exceptional content that not only educates but also engages your target audience. Educational content should eventually be available on a wide range of different mediums. People like to learn in different ways. Some like to read so that they can go over the information at a glance. Others might learn more effectively by listening to someone talk. Then there's people who prefer to watch videos.

All leads should be catered for. Remember, it's about their preferences just as much as it's about their needs. So, write blog articles, publish whitepapers, e-books, webinars, seminars, videos and even podcasts. All of these should offer invaluable insights about your services (and finance as a whole!), expert financial advice and innovative investment strategies. Enticing potential leads this way sets you apart from the competition and will optimise your website for lead generation even more effectively. You can offer exclusive content to leads providing they share their contact information. 


5) Utilise PPC advertising 

Strategic pay-per-click (PPC) allows you to cast your net far and wide on platforms such as Google ads or even popular social media networks. Carefully select keywords for your advertising campaign. Target demographics that align with your ideal audience too. 

With all the necessary marketing research completed, your next step should be how to craft your message. Your ad copy should be engaging and showcase the exceptional benefits of your financial services. That way, leads will be persuaded to click through to your fully optimised landing page and convert into paying customers. 

6) Leverage social media

Build a powerful online presence on popular social media platforms where your ideal audience spends their time. Share valuable and informative content, actively engage with users, and actively participate in relevant discussions. Take advantage of the various social media advertising options available to promote your financial services to a targeted audience and drive a steady stream of traffic to your website.


7) Offer free consultations or assessments

When you offer something for free it instantly marks you out as a potential for resolving a problem. Financial services providers who offer a free initial consultation or assessment to potential leads have an opportunity to showcase their expertise. 

This helps you understand exactly what the lead needs. You can refer them to relevant educational content. During the free consultation (or assessment) the lead is giving you something very important; information. Therefore, tailor your eventual pitch around their very specific financial needs. By showing you understand them instantly builds trust and rapport. 

This helps build trust and allows you to understand their financial needs and goals better. Use this opportunity to showcase your expertise and explain how your services can add value to their financial situation.



8) Utilise email marketing 

Financial services desperately need to enhance customer experiences with personalisation to meet expectations and restore trust. Personalised email marketing is one of the best ways to do this. It’s cost-effective, efficient and yields fantastic results. All of these benefits make email marketing a leading candidate for nurturing your leads.

Lead nurturing is the process of developing relationships with leads and existing customers. Email marketing is an effective method of guiding leads through the buyer’s journey. Allowing you to engage them at critical touchpoints with a combination of personalised interactions, educational content and relevant offers. 

Email marketing also allows you to score leads with the right tracking systems in place. You can assess engagement metrics, such as open rates, click through rates (CTRs) and website visits. This information offers you the chance to assign scores to leads. Giving you a more accurate picture of their level of interest in your brand, marking desirable behaviours to identify customers most likely to convert.  


9) Host webinars

We've already mentioned webinars. However, in relation to the financial sector, we think webinars need their own section in lead generation. That's because webinars ran by financial services providers see the second highest attendance rates. It just goes to show the popularity of webinars with lead and existing customers in the finance industry. 



10) Build strategic partnerships 

Forge strategic alliances with professionals and businesses that cater to your ideal clientele while offering complementary services. This could encompass collaborating with accountants, real estate agents, or estate planners. By establishing referral partnerships, where you reciprocally refer clients to one another, you can generate a steady stream of mutually advantageous leads.

Positive sentiments, endorsements and brand equity of your partnered brand transfer to you by association.

What’s more, 71% of consumers surveyed agreed that they enjoy co-branded partnerships. Giving consumers what they genuinely enjoy and are interested in generates higher qualified leads. 



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Common Mistakes to Avoid When Generating Leads

When generating leads, it's important to avoid common mistakes that can hinder the effectiveness of your efforts. Here are some mistakes to avoid. By avoiding these common mistakes, you can improve the quality of your leads, increase conversion rates, and optimise your lead generation efforts for better results.


  • Weak Value Proposition: If your value proposition lacks persuasion or fails to effectively communicate your product or service, potential leads may overlook the advantages of engaging with you. That's why it is crucial that you clearly articulate the distinctive value and benefits that your products or services provide.

  • Neglecting Lead Nurturing: Not every lead is prepared to make an instant purchasing decision. Neglecting to nurture leads through consistent and relevant communication results in losing them altogether. Keep leads engaged to bring them closer to conversion, using lead nurturing strategies: personalised emails, targeted content, and follow-up calls.

  • Disregarding Analytics: Failing to pay attention to data and analytics hinders your ability to gauge the success of your lead generation efforts. Take advantage of analytics tools to track and analyse important metrics like conversion rates, cost per lead, and lead sources. These valuable insights empower you to make data-backed decisions that allow you to fine-tune your lead generation strategies for optimal results.


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Start your lead generation journey today

Generating high quality leads in the financial industry is challenging due to regulations, low consumer trust, and a competitive market. However, there are opportunities to overcome these challenges. Referral programs incentivise existing customers and partners to refer qualified leads and encourage word-of-mouth marketing. Personalised email marketing and targeted advertising nurture potential customers, while social media and educational content drive direct engagement and strengthen relationships. These strategies help improve conversion rates and attract future leads.

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