Banking relationships and social media are interconnected in many significant ways. These include improved customer service which allows customers to send money via various online platforms and the use of social media data to give access to people for a line of credit as well as the opening of a new bank account.
So, we can very well see that social media has an impact on the ability to get a loan. With so much integration concerning social media, it is imperative that you learn the art of leveraging the online platforms to influence a lender or institution.
In the following section, we have listed the top five ways that allow social media to influence to lender policies. For more information, you can check out Liberty Lending, online. Now let us have a look at the factors.
Money Lending and Lender Policies and the Influence of Social Media
Improved customer service
As a customer, you are always on the lookout for responses in real-time. If the customer isn’t happy with the level of the service, then he/she will vent out the frustration on the public forums. This is usually because no company wants negative publicity.
This is the reason as to why every bank, as well as financial institutions, are integrating the social media accounts like Facebook and Twitter as the permanent options for customer interaction. This is especially true for retail business ventures. These days there are provisions for CRM or Customer Relationship Management systems through social networking as well.
However, there are a few critical concerns with the use of a social network that requires exercising caution. This is where a customer might end up providing sensitive information, and there should be strict policies and security protocols to prevent the misuse of potentially private data and conversations.
The social network for better marketing
A firm’s overall marketing strategy is dependent on social networking these days. So, it is an amateur mistake to assume that the two don’t work hand in hand. The dynamic and ever-morphing social climes are forcing firms and organizations to go for a data-driven approach along with the testing to learn the approach for various marketing strategies through the social network.
There are many small to medium firms and P2P lenders that have experienced significant growth in the past couple of years due to leveraging of the social media networking platforms. That is not all, as many major and so-called traditional firms have also started tapping into the power that social networking inherently possess to drive sales and devise unique marketing strategies. Even deals are being delivered based on check-ins and likes.
For new product and development of service
Social media is being used to launch new products and inform consumers about new services on offer. And it is not just that, as the power of social media and audience interaction also allows a firm to design a product according to user inputs and ideas. This level of consumer integration with a business venture is the ideal way to move forward for branding and global popularity.
Many European countries have already revolutionized the banking systems and models by offering various services through social networking portals. Now you can initiate wire transfers as well as manage/monitor daily expense accounts through social platforms, including Facebook.
Social media for reducing the cost and efficient performing
For a business venture using social media accounts and platforms for audience engagement means lowering the cost, which otherwise would have required setting up a sophisticated system solely for the enterprise. Banks and other financial institutions have warmed up to the idea of launching mobile apps which can be logged in by using most of the popular networking platforms. You can now send and receive money, pay for various bills and utilities, and even recharge your handheld devices through these easy to use phone apps.
Social media as the new business model
The use and integration of social media have also led to the creation of various exciting business models. Wallet services are available with most of the online money lenders and credit line providing operations. There are over a million active users when it comes to leveraging online wallets for payments to investments.
Social media and platforms are being used to rate applicants, credit score measurement and often a user is asked to provide social media references when applying for a line of credit, loans for mortgages and various investments.
Yes, the progress is slow, and only a handful of banks and financial institutions have started implementing the programs. But the number of active users of the internet is astounding, and the only way from here is up. Experts predict that social platforms will continue to get integrated and stop performing as stand-alone isolated systems from the core business structures. Even the big players are required to innovate and implement newer strategies to tap into the pool of potential leads ever present in the networking platform world.
There are long term business models and profitable scales in the pipeline for most of the lending institutions and ventures. The question is whether they will stand the test of time. There needs to be some central regulation that will enable the building of trust. Social networks are not just for the entertainment and connecting to friends and family these days. Three key elements are vital for the vision to take shape, and these are compliance, privacy, and security.
The future is here, and soon, it will be all social networking to make and manage your resources. Think about a future where all the payments, deals, deposits, investment, and loans are handled through social networking platforms. Think about your friends, family, and expert support team on the standby to help you figure out a solution in real time through chat and interactive message boards. No more friction with having to deal with company officials, overworked tellers, and investment planners. For the time being, we wait to see who emerges at the pinnacle of leveraging social media to support financial transactions.