Social media is not any more optional; it's a necessity. It is changing the financial services industries in many ways, from enhancing customer services to enabling clients to do online activities using financial social networks. But, with such an abnormal state of access comes another subset of problems. Therefore, Financial institutions are hoping to pick up an upper hand over different organizations while additionally attempting to moderate the risks presented by social media, for example, when people share very delicate data openly. However, things are rushing.
Key areas where social media is reshaping financial services:
- Marketing and Promotions
Marketing via social media is much more than conveying a tweet about an item; it includes tuning in to clients and exhibiting the organization’s products and services in a way that will address the customer’s issues. As a result, Social media marketing cannot be separated from an organization’s marketing plan. American Express, interfaces a customer's Amex card with his/her online profiles on platforms, Facebook and FourSquare convey bargains dependent on movement, for instance, likes and registration. The MasterCard organization has also won honors for this social growth.
- Productivity improvement by reducing cost
Financial institutions have initiated to use social media channels like Facebook as productive methods for handling work applications. ICICI Bank in India propelled a portable application called Pockets, which allows user access to their web-based banking accounts with Facebook logins. The app enables users to perform primary assignments like refilling a prepaid telephone card, paying service bills etc.
- Customer service and Resolving concern
Customer service is the part in which social media has had the most significant effect on managing financial services. The firm can accost the issues and mollify the customers through social media and can also enhance the business. Twitter offers a fast path for clients to connect. LinkedIn is mainly operated by the financial services industry, followed by Facebook and Twitter. 91% of the financial services experts conducting social media are users of LinkedIn.
- Improving brand perception
The experiment of being social and communicating legitimately is one that numerous banks have looked on social stages; this offers huge advantages as far as brand recognition. Solid social links with customers lead to faithfulness, referral, and brand backing, all of which help to fortify the brand.
Organizations that have exceeded expectations through social media
JPMorgan Chase- By acing helpful and pertinent content; JPMorgan Chase grasp the interest of their followers via tweets and short articles that they update on Facebook and Twitter.
American Express- As a pioneer in recognized social media marketing; American Express runs three separate Twitter accounts as well as five distinct Facebook pages.
Barclays- Keeping the typical Twitter, Facebook, and LinkedIn accounts; Barclays also has propelled Pingit, a versatile application for convenient transfer utilizing Twitter.
Social media is not a substitute for modern financial services, but it can aid the actions of traditional media. Most of the new players in the financial services sector are still struggling to continue the profitable business that will stand the trial of time. As online media user base is mostly below the age of 35 years, financial companies should adjust their web activities to the attributes of this age for making better financial decisions.
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