FINANCE
Social Media’s impact on Financial Services T
he rise and further rise of social media and other forms of digital communication has made a profound impact on so many areas of modern life. This includes the corporate world where companies have a new and often more efficient route to reach their market and also where consumers have been given a public voice to air their views on both the merits and the shortcomings of businesses with which they engage. For banks and other financial services businesses the development of social media has created new possibilities but it also presents a threat to those which fail to grasp the opportunity and suitably manage the new form of interactivity between themselves and consumers. While many financial services businesses have invested in the resources needed to engage customers through social media, the key issue is whether this is being done in an effective and imaginative manner. While some, especially smaller disruptor companies, are doing it well many within the sector are lagging behind. This does actually matter as failure to improve digital outreach and engagement could see such businesses struggle to secure new customers while they lose existing ones. We live in a world whose demographics are significantly changing. Over the course of 2019 50 per cent of Americans will be either Millennials or Generation Z’s, part of a digitally sophisticated generation with little trust in governments or big companies. Many of the individuals within these consumer segments are focused on making the world a better place to live and keen to protect the reputation of brands they identify with while shunning those which go against their values. This most certainly includes banks and other financial services providers. In responding to the changing demographics within the marketplace, many of these businesses are learning that digital communication is not as simple as setting up a social 48