The use of social media increased in 2015 so that Facebook had 1,350 billion people active users; almost equals to the population of China. The statistics is 284 million users for Twitter and 300 million people for Instagram monthly. According to the statistics, 74 percent of users over 18 years use the internet for social networks regularly. Using social media is an opportunity for business. In a study that has been done among 3700 important marketers across the world in 2015, 92 percent admitted that social media is very significant for business. In this statistical society, 66 percent referred to plan to use Twitter, YouTube, and LinkedIn for promoting and expanding their business. 93 percent of them used Facebook and 68 percent wants to know more about social networks. Only 10 percent of marketers have used Podcasting Network. When marketers have been asked to select a network, 52 percent of them selected Facebook and 21 percent selected LinkedIn. Also 91 percent of marketers were willing to achieve more influential tactics and methods in which they can link to their contacts and clients with social networks.

In banking industry, where it is necessary to interact with clients, digital communications are changing to a strong communication channel between financial institutions and clients. Also, these digital media are considered as a valuable tool for actual and potential customers for contacting to the banks. Digital channels allow people to obtain required training and information regarding services and products of financial institutions through referring to Facebook, Twitter, YouTube, Instagram, and other social networks.

Yet, many managers believe that all users of social media are the of a new generation who have born in the explosion of digital technologies era with an accurate understanding of these technologies, but the fact is that the number of the users over 50 years old increases in social media. The researches show that the highest rate of increase in the use of social networks in 2011 to 2012 was in the in the age group of 45 to 54 year old.

Traditionally, banks used strategies such as advertisement, direct post or face to face contact for presenting their services to the clients, but the approach of banks and other financial institutions has changed for presenting services to the customers, interaction with them, and participation with them.

To achieve it, banks should raise their understanding from clients, interests, feeling, and behavior toward them and it can be achieved by analysis in social media. Today, clients expect to be heard and responded via social networks so that they can receive their required services.

Since the launch of Facebook in 2004, banks are increasingly using social media to adapt with them. In addition to launching Facebook account, many Twitter accounts as a new marketing tool have been opened by them. However, the banks acknowledge that the current social media services are like iceberg, much of it is still hidden, and these networks can present much more services.

Nevertheless almost all experts acknowledge that social media contains a risk, both for managers and for their customers. Since social media is pervasive and data transfer through them is irreversible, they may act as a double-edged sword. In case of errors, the risks reflect to the banks. As a result, many banks are cautious of social media to highlight and promote their products and services.

Source: Banker

News Code: 131493