Social Media in Finance
The revolution that business is undergoing at the hands of social media continues to dominate discussion in the communications world. While virtually all organizations are adapting in some manner to the new possibilities and challenges presented by social business, some industries face specific hurdles when looking to do so. Financial services is a prime example.
Brandwatch Report
relationship with the consumer is both simple and profound. With the digitalization of end-user services like banking, convenience endures as a top preference for the consumer – a priority generally at odds with a personalized interaction. Online and mobile banking continues
usage is to rise,
meaning the brand-to-customer experience
automated and
comprehensively dehumanized. The age of customers choosing their banks based on the nearest physical branch or the friendliest, most helpful over-the-counter service is over. With the death of this method
SOCIAL MEDIA HAS had a transformational impact on most peoples’ lives. Today, whether you are a financial advisor, marketing, PR or sales professional in the finance industry, social media is another ideal way to get closer to your customers. Today, new web based and mobile tools exist for
outreach, education and information across the finance industry, and not just via the ubiquitous providers such as Twitter, LinkedIn and Facebook.
The Dehumanization of Financial Services Before we consider how social media is impacting
financial services and what opportunities it offers, it’s useful to first assess the state of the industry as a whole. Reports abound on the trend of retail closing
banks their physical branches.
of choice comes an increased focus on rates, fees and product benefits. In the insurance market, a different cause is leading to the same outcome. Insurance comparison brands have been rising in status at different rates across the world, but it will likely soon be the case (indeed, it already is in some markets) that insurance providers themselves are only secondary figures, distinguished between almost purely on price and product benefits. The relationship the consumer has with the insurance provider brand has been reduced to one of numbers rather than trust or personal favour.
... the brand-to-customer experience is
Factors including changes in consumer demand meant that 348 branches were closed in 2013 in the UK alone with over 2200 closures in 2012 in the US. Many complexities lie behind banks’ reasoning for these actions, but the effect it has on their
62 March 2014
automated and comprehensively dehumanized However, several nuances inherent to the
financial services sector make it a more complex and daunting initiative than for other types of businesses, and empirical evidence shows these are taking effect.
that
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