Social media was started with an aim to help you to connect with friends and share many interesting things. The majority of businesses initially became involved in social media to promote their brand awareness.
Financial institutions are lagging behind in social media marketing. They must make an attempt to provide better services, educate customers, and launch their new products on social platforms in an interesting manner. This is one of the social media trends that can become a game changing strategy for credit unions and banks.
There are some who argue that banks hardly have time to handle social media mentions or conversations. They are just interested in getting their basics right rather than adapt social media technology.
Another fact is that financial institutions feel it is not the right time for them to take new risks because they are currently experiencing a ‘trust deficit’ with stakeholders and traditional culture mindset.
Social media technology is generally transforming worldwide banking relationships significantly in the different areas given below.
The expectations of customers to real-time responses are escalating. Customers vent their frustration through pubic channels, if they are not satisfied with the kind of services they receive. They are aware that not a single business desires negative publicity.
Several banks are integrating social media in their CRM systems for better interaction. However, financial institutions need to be cautious. The huge challenge is in maintaining security standards because consumers can unintentionally provide their personal information.
Banks will need to execute advanced social media policies for handling emotional consumers because the conversations, which were private in the past, are now broadcasted on social platforms.
A financial institution cannot disassociate social media campaign from their marketing strategy. They are forced to adopt an experiment & gain education approach to handle the fluctuating social platform ambiance.
Develop new product/services
Social media platform can be used to deliver as well as design new products or services. For example, Consumers can connect with their banks through Facebook and initiate wire transfers using their bank accounts and even monitor their credit cards to manage daily expenses.
Reduce cost and enhance efficiencies
Using social media banks can decrease their customer service costs. It is the best alternative for online banking as well as efficient strategy to process mobile app.
Creating new models
Here are few examples to understand how social media has not just created a new way to communicate but also better revenue opportunities. For example virtual currencies like Ripples and Bitcoins are considered to be the new emerging social trends, which can provide access to untapped market. Crowd-funding is also getting popular and may create better opportunities for those operating in emerging markets.
In Nigeria, communicating vital message to wide audience is challenging, but social media has helped financial institutions to communicate about the products enhancements and issues successfully.
Social media is a medium that is transforming the way financial service sector operates. Ultimately, in future all the deposits, remittance, payments and investments will be handled within social platforms easily. In this digital world, online friends are first priority. They can support your way to financial freedom in supporting your fiscal goals or vouch for you, by transferring funds via social platform.