Social media has changed the face of our daily lives in so many ways, revolutionizing the ways in which we communicate and interact. In the finance world, social media’s influence is far from unfelt — banking, personal finance methods, investing, and several other financial subdivisions have been enhanced by social media’s versatility.
Customer interaction
Social media has added a new layer of transparency between financial companies and their customers. If customers are unhappy or confused about their financial service, for instance, they now have the ability to quickly communicate with their providers via social media outlets (namely Facebook and Twitter). As a result of this convenience, a growing amount of banks and insurance companies are creating a social media presence to facilitate enhanced communication.
In addition to simplified service interactions, social media allow these companies to quickly communicate broad announcements to all of their customers at once. All of these efforts come as an answer to the general public’s increasing demand for real-time responses and updates from not just their financial assets, but all their service providers in general.
Furthermore, heightened customer/company interaction has created a new means through which companies market themselves to prospective clients and customers. Social media implementation of reviews have, in many cases, become the definitive face of company profiles as they are commonly aggregated into a performance score. Companies with positive review aggregations are given an added resources to cast themselves in a positive light.
Perhaps the biggest social media-related benefit to finance is the way in which social media outlets have simplified some of the industry’s most complex and intimidating processes. Are you new to investing? Rest easy — there are a variety of social media-based apps that break down the process so that it is easy to understand and execute. The majority of these services educate users on the investing process while also allowing them to actively participate in the stock market as they learn. Other social media allow users to easily find and communicate with a financial adviser, allowing them to access background information ensuring they are choosing the best possible option.
Social media also aid users in general research and education pertaining to their personal finance, in some cases eliminating the need to seek out a professional all together. As MarketWatch observes, “when you have financial questions, you can peruse online libraries to track down information and research on the topic. You’ll be able to get opinions on the research from others exploring the same topics. And you’ll be able to get regular feeds to such content and engage with its creators.”