Social Media Is Reshaping The Future Of Financial Services
by Abdul Aziz Mondal Financial Planning Published on: 03 July 2017 Last Updated on: 14 November 2024
We have come a long way from just sharing cat videos and birthday wishes over social networking platforms. Although there are an incredible number of cat videos that exist on social media, other aspects and uses are slowly coming into perspective. From improving customer interaction to providing clients with all their needs, financial technology companies are making complete use of social media platforms like WeChat and Viber. Even the social media giant Facebook is not an exception.
Evolution of social media as a customer support forum
Social media has finally ceased to be the place where people chat and share memes. It is becoming more about customer experience. The FinTech companies are in the process of making social media the banks of the future. FinTech companies are finally recognizing the potential of social media to engage the crowd and improve market penetration directly. High social media visibility is giving a high trust quotient to these companies as well. The full range of services that most social media platforms can provide to the companies is staggering.
Things are moving very quickly for FinTech companies. Financial technology has finally evolved as an independent industry. More people are opting for financial solutions every day. Global investment has increased from $1 billion in 2008 to $36 billion in 2016. This is a whopping 36 times more than the initial figure Accenture and Partnership Fund reports provided. Traditional business models are experiencing massive overhauls thanks to new social media based models. Social media is now reshaping the present and future of financial technology and services, globally.
FinTech companies are leveraging the change in trends
Here are the five ways in which FinTech is experiencing maximum impact –
Customer Service
Companies are now able to interact with their customers in real-time. This process is humanizing more companies with every passing day. Social media platforms like Twitter earlier served as the prime platform for customers to vent their frustrations regarding faulty business services. The introduction of real-time interaction is gradually bridging the gap in communication. People are turning to company pages and chat systems to seek help. This has reduced negative publicity.
Read also: 5 Tips to Build Excellent Customer Service for Your Small Business
More and more FinTech companies are now using Facebook and Twitter as platforms for their local customer interaction.These companies have integrated these platforms into their CRMs to collect fresh customer data.
One of the more emerging concerns with the rise of social media service is customer security. As more people share their details on Facebook and Twitter, hackers are getting more ground to launch attacks. Banks and other financial services now need improved social media policies to tackle such threats and sensitive issues. Nothing on social media is truly private, and the new policies will help safeguard customer information.
New product launch and service development
Barclaycard’s Ring MasterCard used crowdsourcing to design and develop their most favorite product. Any new FinTech company can make use of social media’s high engagement levels and real-time interaction to design new products and services. Social media has ceased to be about friends and family for most users. It is more about finding new services, and financial technology is one of them.
DenizBank in Turkey offers banking services through Facebook. This is how much the present day market and services have changed to accommodate user concerns. Customers of DenizBank can connect to their account via their authorized Facebook logins and conduct wire transfers. They can monitor their daily credit card expenses via their social media accounts as well.
Social media marketing
Social media marketing has been around for over a decade. However, it is quite new for FinTech solutions and services. According to market leaders like Accenture, the results show decipherable segmentation, reduced acquisition cost, and real-time marketing strategies. This is causing more number of companies to adopt a data-driven approach that can accommodate an ever-changing social media scenario.
Read also: Winning Social Media Engagement Hacks for Your Small Business
Online P2P lenders like Lending Club are enjoying the benefits of social media marketing beyond imagination. Some debt counseling and debt relief companies like Nationaldebtrelief.com are investing in social media marketing ventures more. These new, alternate sources of debt management that are more efficient that the traditional ones. They provide their clients with useful counseling sessions, debt management lessons, and consolidation loans. A number of these companies effectively help customers to overcome their financial turmoil and find sound footing. They help their clients overcome credit card debts by posting relevant advice on social media regularly. Some financial advisors representing these companies are online each day to help you out with queries and problems.
Cost reduction
Integration of Facebook, Twitter, and LinkedIn into their marketing strategies has helped the FinTech companies to reduce their costs of customer serviceover time. There are some dedicated apps each day that addresses financial requirements of clients all over the country.
For example – there are dedicated apps like Pockets. This app helps users to send money to their friends and family members, recharge mobiles and buy products. Even banks are now using Facebook to stay in touch with their clients.
New business models
Even the FinTech companies have to think about their finances. It is interesting since the use of social media platforms has curtailed the cost of marketing significantly. Banks are making use of social media for references and reviews.
This is allowing more number of finance technology companies to address the demand for debt management and solutions head-on.
Although the adoption curve was initially, slow. The use of social media by the FinTech companies has skyrocketed in the last couple of years. Customer service and marketing are enjoying a newfound popularity with social media platform integration. Some people are now becoming aware of the existence of loan solutions and debt management programs. Soon a time will come where you will be able to handle depositing money, transferring money, wire transfers, credit card approvals and payments from the comforts of your home. As a result, some FinTech companies are now investing in advanced security for their social media channel to safeguard customer privacy.
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