Banking and Social Media - Case Study Example

Banking and Social Media The chances of financial s including banks to use fully social media technologies are low. This is due to challenges on compliance, potential regulatory issues, security, inadequate back-end infrastructure and data privacy (Iris, February 24, 2014). These challenges, therefore, restrict customers from making payments, transferring money or checking their balances from social media sites including Facebook, Twitter, YouTube or Pinterest accounts (Marous, May 5, 2014). Instead, these media platforms are used to educate the customers observe and respond to service issues, build brand awareness, sell services and understand the customers’ preference in a better way.

Age is the other reason as to why social media cannot be fully used as a banking platform. Young people are much more likely to use these platforms than older people. There can, therefore, be a problem if the social media was to be used fully as a banking platform as not all customers are familiar with social media. The region of the world in which the customer is in brings out another reason social media cannot be fully used as a banking platform. There are those parts of the world like North America where a 36% of customers use social media platforms reducing the chances of fully utilizing social media for the provision of banking purposes.

It is possible for customers to access banking services through Twitter as it has been possible to do so using Facebook. The possibility of using Twitter in provision of banking services is yet to be confirmed owing to the lack of clarity around the emerging social media landscape, and there is an added complexity to the already crowded social media channel infrastructure. Another reason for its lack of clarity is the few metrics available for measurement of the effects of using social media on a financial institutions bottom line.

The risks associated with third parties and privacy issues add up to the reasons why using Twitter as a fully banking platform can be difficult.Work citedIris, vermeren. February 24, 2014. Brandwatch.web. file:///G:/The%20Challenges%20of%20Using%20Social%20Media%20in%20Banking%20-%20Brandwatch.htmMarous, Jim. Minding the Gap in Social Banking Expectations. Retail Banking Strategies. May 5, 2014. Web. file:///G:/Customers%20Want%20More%20Social%20Media%20Banking%20Services.htm