Adopting social media strategies to build a future-ready banking business

Adopting social media strategies to build a future-ready banking business

Like every other sector social media is significantly transforming customer relationship within banking industry as well. From usual banking transactions to grievance redressal to customer service social media is allowing users and banks to engage at a more deeper level.

Platforms such as Facebook, Twitter or even the Asian networks like Viber and WeChat are now offering an array of services through partnership or directly to not only provide on-the-go services but also make it convenient for users to carry out banking transactions. But use of social media is not only beneficial for customers. One of the key advantages is that irrespective of the size of the bank, they can use social media for better outreach, seamless operations and superior customer service.

Recognizing its proliferation into the banking industry and potential to establish genuine customer engagement banks across the world have started to explore various social media strategies to boost branding and accelerate business growth. Players are increasingly looking to use social media to not only gain a competitive edge but also alleviate threats through risk analysis, business forecasting and consumer awareness.

There is no doubt that strategic use of social media can dramatically impact banking operations. While there are several ways financial institutions can take advantage of this platform we have shortlisted few key strategies that can help you kick start your digital initiatives.

Differentiating yourself through excellent customer service
 
Close to 35% of people say social media is their top choice for customer care. The survey also indicates that 36% will post negative comments on social and 1 out of 3 may switch to competitors. While it is imperative to connect with your customers through personalized messaging. Going by the trends and statistics, the most effective social media strategy would be to handle customer service issues.

Needless to say, that social media allows you to respond to any customer grievance in real time giving you an opportunity to turn poor experience into a positive interaction. A dedicated social media team can enable you to provide right information and solution to customers at the right time making it more responsive to and engaging with customers. This in turn can improve customer satisfaction and customer loyalty and trust.

Marketing your products based on customer sentiment
 
While banks have been employing traditional direct marketing or push strategies to advertise their products, these methods are increasingly becoming ineffective in the face of changing customer behavior and relationship dynamics. As a result, the industry is now shifting from push to more engaging interactions to market their products and services.

To facilitate such engaging strategies, banks need to adopt social monitoring and analytics to understand their customers and gain deep insights into customer needs, sentiments and behavior. In-depth customer intelligence enables banks to communicate with existing as well as prospective consumers in a relatable and personal way. It helps improve targeting, and not just communicate enticing offers but also execute them online by enabling online account openings, loan applications and other form submissions. Statistics show that promoting products through social have resulted in higher rate of conversion.

Create novel business models
 
Many fin-tech players are increasingly disrupting the traditional models by taking advantage of this drastic penetration of social media by offering simplified and convenient banking services at lower costs and less paperwork. Some upstarts are providing entirely new services, Start-ups such as Digit help their users stash away and save small amounts of money for rainy day.

Many lenders are also using social media to rate the creditworthiness of applicants, while some banks are granting loans by asking applicant to use social media for references. Continuing the trend of disrupting conventional models, China has provided credit information bureau licenses to Tencent and Alibaba.

Social media is fueling a paradigm shift in the banking industry. The new engagement and business models and proliferation of non-traditional players are heralding greater financial inclusion at lower costs and superior customer service. This is the right time for banks and financial institutions to adopt effective social media strategies to retain and gain market share.
 
Whether you want to get started with social media initiatives or tweak them to boost business outcomes, talk to us today and we can help you take advantage of the right digital strategies. 

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