Slowly, though demand has risen for social media to me than just a platform to just moan at banks, consumers now want to be able to use the Facebooks and the Twitters to make payments, set up direct debits and other such things.
Why? Because our lives exist on social media, so why shouldn't banking incorporate itself into that.
Putting the future into practice
So what does all this look like in reality, well this is where fintech comes in, there are a few hip new alternative financial institutions who’ve embraced the socials. The main reason being the adoption of it by banks has been so slow that these fintech firms sniffed out an opportunity to subvert these institutions.
American Express offers users the ability to link their card with particular social media platforms this means Amex can deliver bespoke deals to their clients based on their activity, ‘likes’ and check-ins.
Looking ahead slightly, reports say that Whatsapp, the instant messaging giant, will soon be rolling out finance functions for their users - which, if true, really will be a game changer given that a 6th of the global population using it.
5 ways social media is bossing your banking
Marketing and social media are virtually symbiotic nowadays, the usual data-driven approach is now accompanied by a test-and-learn ethos that is nimble enough to deal with a volatile social environment. The use of social media has helped small business lender like OnDeck to grow exponentially and allowed companies like Monzo to subvert traditional finance institutions by placing themselves as funky, alternative banks to work with.
One of the perks of using social channels is that it's free, meaning costs are reduced, it's also becoming a more efficient way of processing applications. An Indian bank, ICICI, has recently launched Pockets a mobile app that people can use through their facebook to send money to friends, pay bills and even trivial things like buying cinema tickets.
The way customer service has changed is largely down to the instant nature of something like Twitter, a growing number of people prefer to tweet a business with their grievance that waste their time on hold on their mobile. This has forced many financial institutions to up their game for fear of bad publicity, integrating CRM systems in order to keep on top of it all.
The interactive nature of social media has led to companies reaching out to their audience to develop new products or services, seems pretty savvy to me, stop second guessing and just ask what the people want. Barclays did just that with their new Ring Mastercard, this new product was crowdsourced and the favourite design picked by their audience.
Turning the tide
Quicker than we think, banking and social media are converging ever and ever closer, like all the tech we talk about the blog it's always about seeing these things as great opportunities to grow your business and get ahead of the game. Social media isn't going anywhere but the way people bank is. Reduce the inefficiency, speed up the process, give your consumers what they want - easy banking through social media.
