Effective marketing is critical to success in the financial services industry, and institutions are increasingly turning to outside specialists for help instead of relying solely on in-house expertise. A recent survey suggests that a significant percentage of marketing activities is already outsourced by banks of all sizes and that the trend is growing. The survey of banks and other financial institutions in California indicated they are discovering that such outsourcing is not just less expensive, but also more effective.
The survey, conducted by Wilcox & Associates in the spring of 1994, shows that many respondents use outside firms to perform marketing activities and that they expect to continue or increase the practice. What's more, the larger the bank, the more likely it is to outsource these activities. Institutions were classified as large ($5 billion in assets or larger), medium ($1 billion to $5 billion) and small ($500 million to $1 billion).