Posted on: March 23, 2022 | By: Rajat Mehrotra, Assistant Professor RBMI Group of Institutions Bareilly
Originality/value: The research paper is an original work based on primary data gathered from the respondents of Uttar Pradesh and Dehradun. The secondary data will support in ascertaining the comprehensive views towards investment pattern of customers in different banking products.
Keywords: Banking products, Facebook, Twitter, whatsapp, instagram, Credit Cards.
The face of banking is changing very rapidly in a changing World particularly when it comes to Indian banking. With the issuance of new banking licences by the Reserve Bank of India, the Indian banking is becoming more competitive with more players entered into the Indian Banking space with diverse range of products, customer needs, different types of customers, different set of the requirements of customers, mediums of distribution of services put in place a very important medium which will help banks reach the large number of customers within a very short span of time or we can say instantly in a cost effective way is through Social Media. Social media platforms not only create awareness but also will well inform the customers about the different new and innovative ways of banking. But merely following or dependent on social media platform will not work alone rather it should be used in a way as it should benefit the end customer in a timely manner. Time and cost are the two major drivers which make the emergence of social media entered into the Indian Banking space. Digital transformation is the need of the hour. The Indian banking is changing its face from the traditional manual banking to automated banking, core banking, ATMs, E-lobby passbook printing, cheque book request kiosks, SMS banking, tele and phone banking are some of the mediums of exchanging the information digitally. The new gen tech savvy generation may not want to waste time visiting bank branches rather they prefer to do banking at their convenience. With the emergence of smart phones, the strong infrastructure connectivity in rural as well as urban areas and the GOI initiative of learning and development in making the citizens of India financially inclusive the different social media platforms like Facebook, twitter, instagram, etc. are among the popular mediums used by customers in accessing the banking services at ease. In the late 90s, cheque and cash were the two prominent modes of payment options widely preferred in Indian banking but now in 21st century and particularly after 2014, the major transactions done are the mobile phones, through SMS, through miss call, on mobile wallets to name a few.
Cognizant 20-20 Insights-How banks can use social media analytics to drive business advantage, New Jersey, 2014 Social media is dramatically impacting the banking industry, as most banks have established a presence on various social sites. Barclays Bank, Citigroup, Inc., HSBC, NatWest and others all engage on social media through Twitter, Facebook, Google+, LinkedIn, etc. J. P. Morgan’s customer service account alone has more than 26,000 followers on Twitter, and the company has sent more than 90,000 tweets since its inception.But followers and interactions are only as good as the meaning that can be distilled from them. As customers increasingly use social media to share opinions on financial products and services, banks must listen, learn and respond, as well as incorporate their social activities into their overall corporate strategies. In most cases, this requires banks to rethink their core business strategies to make them more customer-centric.
Traditionally, banks have employed a “push” strategy to communicate their offerings to customers, through advertising, direct mail, point-of-sale displays or face-to-face interactions. However, the industry focus has shifted from “customer service” to “customer engagement,” which requires a two-way mode of communication. To sharpen their engagement capabilities, banks need to enhance their understanding of customers by using social analytics to gain deep insights into customer behaviour, sentiments and needs.
KPMG-The social banker v2.0, UK, 2013 In the beginning, the bank focused its social media strategy on customer service and engagement. Even today, the bank sees social media as an opportunity to ask itself a simple question: what do customers – and prospective customers – really want from their bank? The results have helped the to define strategies and make decisions such as where to place new ATMs, the roll-out of e-branches and even the placement of a full-service branch. In a country where communicating important messages to a wide audience is often difficult, social media has also helped the bank identify and communicate enhancements and problems with its products and services. In 2012, when part of the bank’s internet functionality was down (due to security system upgrades) customer’s flooded social media with questions and comments. In short order, the social media team was able to monitor the issue, alert executives to the problem and then work with stakeholders across the organization to communicate the issue – and proposed resolutions – to customers.
American banker Association research study- The state of social media in Banking, ABA, Washington DC, 2017 For most banks (75%), social media strategy and content are managed by the marketing director or vice president. One bank in five assigns this responsibility to someone else, such as a manager in marketing, IT or compliance. Only 10 percent of banks turn to an outside marketing firm, in part because of fears that external agencies might not be well versed in the compliance issues. More than one-third of respondents in the survey (36%) said client-facing employees (such as personal bankers, loan officers and financial advisors) are not allowed to use social media for business purposes.
Another 28% said employees can post, but the rules are unclear, while 26% said employees are encouraged to post and the bank provides social media training to employees
In our research we used the questionnaire method of data collection with closed ended questionnaire from the various respondents – doctors, CAs, Bankers, Business persons,teachers, professors, govt. servants, students, retired presons residing in the cities of Bareilly and Dehradun who have participated in the research has been analyzed with the help of percentage analysis and bar graph. The questionnaires were filled by 510 respondents.
say NO they are influenced by the social media platform before making any financial products purchase from banks
The usage of social media is increasing day by day with the increase in technology and the digital literacy among the Indian population especially the Indian youth population are the major driver of accessing the social media. The mobile phones also have eased the reach of social media in the Indian masses. With the increased competition with the entrant of new players in the Indian banking space the competition is becoming more stiff and hard and thereby making each bank to eat a pie of the customers in the form of banking services rendered by the banks in the form of making them reached in the hands of Indian population at utmost ease and quick. This makes the dependence of banks on social media platform a much needed hand which will benefit banks not only in reaching the end customer but will also be quick and less costly. Nowadays you name any banking service whether it is checking your bank balance, request for credit and debit cards, amount transfer, request for demat account, opening of new current account, savings account, making of an FD, RD, renewal of deposit products, want a loan everything is being done electronically whether through laptop or mobile phone. How social media is active in the form of facebook, twitter, instagram, linkedin, etc, The social media can be used in terms of sharing an event pictures by a bank on Instagram page, conducting a quiz on twitter and instagram, conducting a CEO speech through webinar on facebook are some of the quick and easy ways of connecting with the potential and prospective customers on a large scale on a pan India basis. The impact of emergence of social media is creating awareness in the minds of customers and they are voluntarily accepting the banking products through social media and are interested in doing the transaction with the help of it either directly or indirectly.