StrategicNYCSocial

 Banking on Brand Engagement

Most businesses today recognize the importance of social media as a channel for building both business and customer loyalty. However research shows that banks are severely lagging behind in the trend. A study by Varolli Corporation found that just 4% of financial institutions (FIs) use Smartphone apps as a top communication method and continue to push direct mail despite its low response rates. Tough regulation on electronic communications from the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) coupled with customer privacy concerns does somewhat limit the reach of social media in financial institutions, however the opportunity still exists for banks to relay information on their products and services to customers who follow or “Like” their brand, increasing customer engagement and awareness.

It’s time for financial institutions to reach out to connected consumers and take the multi-channel approach employed by many others—giving customer the ability to be kept up to date through whichever channels they choose.