How Social Media Trends Are Shaping Financial Services

Posted by Richard Michael on November 30th, 2016

Social media is redesigning banking relationships in remarkable ways - from enhancing customer service to providing more personalized customer offers. Today, financial companies are utilizing social media to answer customer queries or assist clients open a bank account.  It can even influence the chances of acquiring a loan.  

Through social media, banks and insurance companies have opportunity to gain the trust of prospective clients and turn them into loyal customers and eventually brand advocates.  Although other industries are extensively using social media, the financial sector are taking things slow partly because of stringent industry regulations.  

Nevertheless, financial services understand that social media will stick around for a long time that many businesses including accountancy firms, banks, insurance companies, stock brokerages, and credit card companies, are making their presence known on Facebook, Twitter, and other social media networks.

One particular area where social media demonstrates numerous benefits to financial services is customer service.

Customers demand immediate resolution from their service providers for their concerns and inquiries. When customers are not pleased with the service they're getting, they often resort to social media channels for vindication.  No company would want negative reviews and publicity.  For this reason, a growing number of financial institutions and insurance providers are incorporating social media as a customer communication channel.  Traditional companies are also using social media integration to provide their customers better promotions based on customer check-ins, likes, and other activities.

Social media presents financial establishments a way to impart thought leadership, announce romotional offers, and boost customer engagement  using a cost-effective and high value platform.

In summary, social media is shaping the way people communicate around the world.  If you fail to use these new technologies to your advantage, your competitors are going to leave you behind.  Any business that wants to remain competitive in this digital age would benefit from using social media platforms.