Fintech Trends: Social Media
The online world has taken over our daily lives in every aspect possible – from clothes to banking services it all happens online. Every service is close to required to have social media channels in order to attract new customers and retain the already-gained ones. But how does Fintech play into this social media trend?
The Channels
Social media has moved on to be much more than a place to connect and click on funny posts; it has grown into a platform for real-time updates, transforming the customer-business relationship.[1] The possibilities are enormous: Twitter, Facebook, LinkedIn, Instagram, etc. Every channel has its own benefits for each business. Not only are those channels a way for customers to interact with Fintechs, but are also the place where complaints or new ideas are born. New and old companies have had to turn to social media. Fintechs such as solarisBank, which was recently named as a social media influencer, and traditional banks such as American Express are using their social media channels as an opportunity to spread news through links, shares and tweets while, simultaneously, influencing their customer base.[2]
Marketing
Speaking of influencing, social media has given rise to the new term “Fintech Marketing” or simply put, marketing done on social media by Fintech and banking industry experts. Marketers spend their time utilizing social media channels to find people within the Fintech sphere who will become followers. In turn, these experts will promote content and help engage customers. Mentions in articles, podcasts and even tweets slowly build up a Fintech into an influencer in the industry with access to a worldwide platform.[3] Overall, social media facilitates Fintechs and their Marketing departments to gain a competitive edge while maintaining customer satisfaction.[4]
Real Examples
With the shift towards social media, comes a shift in the Fintech sector. Fintechs all over the world have entered social media. For example, our ventures BillFront and Savedo have both Twitter and Facebook channels. Clark has taken it a step further with an Instagram account. We, however, are not the only ones. Large Fintechs such as Lending Club and Klarna have also joined social media with multiple accounts. Following Fintechs are banks – Germany’s Deutsche Bank, the US Bank of America and UK’s Barclays have all created Twitter and Facebook accounts where feedback is encouraged. Others take social media as a business model. Venmo is a mobile payment app who has integrated the larger social media platforms in its model.[5] Clearly, social media will be big in 2017, but only time will tell how much it will influence the Fintech and banking communities.
Sources:
[1] How Social Media Is Shaping Financial Services
[2] Social Media and Fintech Startups
[3] Fintech Social Media Marketing