We are living in the internet age where the dominant form of communication is social media. Statista found that in 2021 over 4.2-billion people were using social media worldwide which is why it is a necessity for businesses to utilise and leverage social platforms.
The relatively new fintech industry has welcomed social media with open arms and we’ve seen adoption of social platforms across the board. This isn’t because fintechs simply enjoy sharing social content – it’s a move that’s born out of necessity to stay on top, and ahead of the curve.
The benefits of using social media as a fintech cannot be understated. To fully understand why social media is such a necessity, we need to look at three elements:
Gone are the days of one-sided marketing – social media facilitates a two-sided marketplace. It allows customers to communicate directly with a company about a product or service. This is especially important for fintechs, as a direct line of communication with customers can improve service and product quality.
It also allows merchants to communicate with their customers to get a better understanding of their audience as well as improving customer experience. It ultimately creates a feedback loop for companies, which allows them to make constant improvements on products that cater to consumers’ needs.
According to a report by Sprout Social the number of customers that preferred contacting brands through social media jumped 110% between 2020 and 2021 as online sales boomed.
In the past, financial institutions have been seen as impersonal and blunt. With the advent of social media, fintechs have a platform that allows them to humanise their brand.
This is especially important as showing people a product they can relate to through engaging, authentic content fosters trust and builds a strong relationship between customers and a brand. This trust is the cornerstone of what drives sales and confidence in a product.
Since the pandemic, many consumers have had more of a need to interact with brands on a deeper level. By having a strong communication strategy and content that allows for trust to be built, brands inherently start to build a more human connection.
New technologies are complicated, and fintech is no exception. Knowledge on these technologies is crucial for the customer, therefore informative social media posting bolsters the integrity of fintech.
Customers need to be educated on a product, why to use it, how to use it, and why it is safe and a necessity.
A product can quickly become obsolete if the customer has no idea how to use it or does not trust it. It becomes imperative then that fintechs should use social media to educate and inform. It’s like a knowledge marketplace.
People inform and educate themselves on social media, not too dissimilar from those who learnt from social gatherings where people would meet and share knowledge of their experiences.
There are many ways to leverage social media within the fintech sphere, and there is no hard and fast way to grow your fintech’s following overnight. It takes time and consistency. With the help of social media, this task becomes a lot less arduous and much more forgiving.
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