Banking on social media, a new disruptor

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Social media are interactive computer-mediated technologies you can’t avoid or ignore this generation because it’s here to stay despite how you may feel about it. At the beginning of social media, Banks saw it as an innovation that was killing its profits but as they have seen that it’s unavoidable they found a way to make a profit out of it.

Banks viewed social media as a way of communicating with its customers only in its early days but now that communication has created stable and profitable relations with the customers.

Steward bank has made good use of social media as it has the largest customer base in Zimbabwe. They used the WhatsApp platform to open a bank account called Shosholoza.

Social media has enabled banks to know their customers resulting in them knowing the services needed by their customers. Social media has made information about your spending pattern, preferences and important life event available to the Banks.

The moment you get married and you post it on social media platforms such as Facebook, Twitter, and various other platforms, the bank will have access to that information thus giving them an opportunity to offer products that would be of interest to that customer, for instance, a house mortgage, family car financing, maternity savings so on.

Social media has given Banks access to reach a wider audience through social media marketing and advertising. Geographical constraints have been eliminated as banks are offering financial services to customers anywhere in the World.

Transferring money from your bank to any wallet in a secure and convenient manner and being able to make payments on websites, as well as receiving funds from other source has been made possible by social media.

Steward bank being the new kid on the block was not expected to have the largest customer base but it has the largest. Social media is attributed to its success in having the largest customer base.

Going to a branch to speak to a rep about their finances or discussing investment options is not something the youths of these days look forward to doing. They prefer being able to manage their money from any location they are.

This generation of customers will get attracted to the convenience of carrying out banking activities via their social media accounts. Banks will be able to leverage on this by cross-selling products which will be relevant to a younger customer base, thereby deepening their relationship with the banks.

Social media is already being used for customer support by most banks but a deeper partnership with social media platforms will empower the banks to offer better support services. This will help in building stronger relationships with customers further improve response time.

Customer data on social platforms can be used for activities like user authentication and credit scoring, which empowers banks to provide better support to customers. The fact that some banks are already using social media credentials to verify identity reveals how much can be achieved in banking on social media.

Indeed there are many opportunities for banks as a result of social media. Banks should increase their presence on these platforms for greater customer experience.

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