Impact of Social Networking Sites On The Banking And Finance Sector

There is no denial that social media has provided a huge opportunity to various industries, to interact with their customers as well as grab new ones by marketing their product and services more clearly on these platforms. Through social media, various industries are able to promote themselves at a huge level.

Banking and finance is one such sector which has now realized the power of social networking sites. Financial institutions work hard to maintain a reputation over social media because they know that people today are tech savvy and more often than not rely on reviews and opinions about their brand on social media or on their social media profile itself.

Challenges faced by financial institutions

Unlike other industries, the financial sector faces a lot of challenges to establish themselves successfully over social media. One of the main concerns associated with finance is its security.

Because of this reason financial organizations needs to make strong strategies to promote their brand and they should be highly concerned about compliance, regulations and risks associated with customer’s financial security, as well as how the promote their brand and their services online.

A strong and fully tested business model is a must, if a financial organization wants to business growth with the acquisition of new customers.  Social media can be a great, cost-effective way to help achieve their goals.

Bank brands and analysis

There are a number of reputed banks and financial organizations which run their pages over popular social networking sites to spread information about the services they are offering and to help their customers with queries they have regarding a financial plan.

If data is to be believed, reveals that American Express, Barclays, Charles Schwab, and other reputed financial companies have a strong presence on popular social networking sites, such as Facebook. Some of them run more than one social media account on different sites to help customers with their different needs – from customer service to corporate news.

Twitter is winning the game as a huge number of finance companies and banks are running successful campaigns on this micro social network. According to this Twitter analysis of bank brands, American Express is excelling and is number one in terms of their activeness there.

A reputable finance organization introduced its mobile wallet a few years back, which provided its customers the benefit of conveniently transfering money, booking tickets and so on through an app which is connected to their bank account and can be logged in through their social site’s account credentials. This is one great example of a financial brand embracing the digital world by providing a great service and experience to its customers.

Customer service and marketing

Customer service is one field which can do wonders for any financial organization, particularly as brands in this sector suffer from the public’s negative perception of them and therefore a lack of trust. With a strong marketing strategy, a strong customer service is also needed to establish credibility and build a strong brand reuptation over social media.

If the customer service provided by a financial organization is appreciated by customers, they will become brand ambassadors by providing positive reviews, which helps develop a good perception by those visiting the social media profile of that company.

However, be warned that the opposite happens when customers are not happy with them. Negative feedback can cause a lot of harm to a brand’s image. Therefore, delivering great social customer service is a core aspect of any bank’s or financial institution’s digital strategy.