Key challenges faced by financial services companies on social media in 2018

    socialselling

    In June 2018, Blackfriars in London holds the UK’s first ever social media in financial services event.

    With MiFiD2 already here and GDPR arriving in May this year, we’ve been canvassing confirmed and potential event attendees on the subjects they want to learn more on about harnessing the power of social media and other emerging technologies.

    watch Transitioning from a direct sales model to a social media sales model

    B2B direct marketing will be significantly affected by the introduction of the General Data Protection Regulations (GDPR). Marketing to consumers however will be fundamentally transformed.

    In the past, no permission was needed to contact consumers by post. Contact by phone or email was lightly regulated. Now, for every single consumer, specific permission to contact is needed for every marketing channel. That’s one permission for phone calls, another one for text messages, another one for emails, and another one for post.

    At the same time, the Information Commissioner’s Office view on the nature of permission has changed. You will only be allowed to contact customers on products or services closely related to the products and services they gave permission to be contacted on. Just because someone has a loan with you doesn’t mean they have consented to hear about your credit cards.

    How does the modern financial service company marketing department adapt to this change?

    Social media marketing offers an inexpensive and highly-targeted route to market through advertising and group creation. What do today’s marketing managers and directors need to know and how soon do they have to learn and implement it?

    follow site It’s not just your website and the phone any more – the challenge of being everywhere your customer is

    Customers no longer expect to work to your hours or your terms of contact. Customers expect you to be ready to answer their questions and address their concerns on social media as quickly and effectively as if they were standing in your retail premises.

    Statistics published by Novartis in 2017 show that a consumer’s number one “determinant of convenience” when selecting a financial institution is a “leading online or mobile app”. The availability of local branches, number one in 2015, is now number three.

    Financial services companies face additional levels of complexity in rolling out social media marketing, customer management, and complaint handling services because of the highly personal and confidential nature of the data they hold in additional to regulatory compliance requirements.

    To turn away from social media because of these complexities would be a mistake. The short-term difficulties and expense of the investment involved in such systems are dwarfed by the potential returns. A recent study by Twitter, examining customer willingness to spend as measured by the speed of a response on the platform, showed that a response on Twitter within just 3 minutes meant a customer would be happy to spend 4-5 times as much on a monthly subscription service as a response that took 20 minutes.

    In Social Media In Finance 2018, our experienced professionals and speakers will guide you and your company on the platforms you need to make an immediate investment in together with predictions on which social media companies will next capture and engage the public in their millions in the coming months and years.

     

    go Using big data and artificial intelligence to predict both customer buying patterns and complaints

    Artificial intelligence applied to structured databases presents new marketing opportunities to existing, lapsed, and potential customers together with an assessment on the most effective marketing approaches to take to increase the chances of a sale being made.

    “A new generation of AI solutions focused on the effectiveness more than on the efficiency. Tools able to evolve from the pull conversation to the push sales. The proactive offer of the right product at the right time with the right message, as was done physically by the best sales for decades”, says Matteo Carbone, the founder and director of Connected Insurance Observatory.

    Artificial intelligence will allow your financial institution to leverage the power of social media as it will deliver a better and more personalised customer and prospect experience as the standard sales and engagement models move from direct marketing and institutional advertising techniques to a more one-to-one connection with the individual.

    At Social Media In Finance 2018, we’ll examine how social media can redefine the customer experience through the use of AI which will build trust in  your brand. AI has a significant role to play in the successful blending of the marketing, sales, and compliance divisions of your company too.

    APIs and channel partners

    The best type of financial services advertising is one where someone else pays for your advertising, handles the customer through the sales process, and then closes the deals.

    As consumers expect more flexibility in buying financial services from you, they’ll expect the same lack of friction when it comes to buying your products from your reseller network.

    Application program interfaces (APIs) will allow you to leverage the investment in your CRM, social media, marketing & advertising, and compliance systems across your reseller network. In essence, you can control your brand’s buyer experience on multiple platforms through whichever company they choose to access it.

    Who do you need to develop APIs for your financial services company and what are the marketing and logistical challenges of rolling it out?

    More on APIs and PSD2 open banking regulations

    The Revised Payment Service Directive (PSD2) is another seismic change facing financial institutions, particularly legacy firms. PSD2 forces bank to publish their APIs and equalises the positions held by banks and fintech firms in the eyes of the regulators and the law.

    Why the change? The 2014 Global Findex database, published by the World Bank, showed that, even in EU countries, the unbanked sector of the population reached as high as 39%. Potential financial services customers were put off by the casualisation of those on low incomes, transaction costs, paperwork, and travel distance to banks and other financial institutions. 58 million consumers in the EU are unbanked.

    Legacy financial institutions have a large infrastructure that needs maintaining. This infrastructure is often unwieldy and the systems powering it are outdated. Fintech companies will use legacy financial institutions’ APIs to reshape the process of engagement with the elimination of friction, the reduction of costs, and the development of more targeted services.

    APIs will allow users to access different accounts at different institutions through a single source, facilitate inexpensive movement of money, increase financial safety and decrease fraud, improve forecasting, enhance personalisation, and widen access to financial services in general.

    Industry experts expect that consumers will be able to access many of these facilities through secure social media accounts, meaning that Facebook, Twitter, and Instagram will inevitably become one of your company’s major selling and servicing centres.

    Fintech is more than just the movement of money. According to PriceWaterhouseCoopers, 38% of fintech customers are using technology for wealth management, 38% for insurance, 49% for savings, and 56% for personal loans.

    Visit our event to see the latest development in social media and PSD2 convergence together with predictions for future developments.

    Join us at Social Media in Finance 2018

    See the future and the part you and your company play in that future as social media and technology marches forward at an unprecedented pace. Join us on the 20th June 2018 at the Crowne Plaza Hotel in London for incisive industry insights and invaluable networking opportunities.

    Download our brochure here or register your interest here.

     

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