Social media is a major aspect of business growth in virtually every commercial sector, but banking has been using popular online platforms in a new way. From opening new accounts to investment tips and open forums, the financial industry has started using social media to reach younger audiences.

Take a look at some of the key ways the banking and economics sphere are using social media to grow in 2020.

1. Improved Consumer Engagement

Traditionally, banking has been a very closed-off industry. Financial decisions have been made at a counter or behind a desk in the same manner for decades. But, the growth of banking as an online industry has opened up the world of personal finance in a big way. 

Instead of meeting with a banker in person, Millennials and Gen Z consumers are able to learn about finance through investment strategies, lending terms, and more via each organization’s social media feed. 

Brands can also connect with customers directly, which can make financial consultations more personal and customized.

2. Build Brand Identity

For most people, banking isn’t the sexiest industry. It’s driven by objective figures and rigid criteria, compared to more creative spheres like fashion or art. But, social media makes it easy for businesses across any industry to build a unique brand identity among their target audiences. 

Social media allows any corporate or individual entity to develop a quantifiable personality. But curating photos, quotes, captions, and proprietary information about a brand can say a lot about what they have to offer users as individual consumers. 

Building brand identity is proven to translate to brand loyalty, and social media is a free resource that can generate organic traffic with little investment.

3. Access Helpful Metrics and Industry Data

Just a few minutes of social media research can speak volumes about a specific finance company, or niche in the market. Hashtags, relevant accounts, adn trending topics can provide financial institutions and consumers a comprehensive display for:

  • Online mood 
  • Competitor information
  • Points of improvement
  • PR problems 
  • Employee unrest
  • Customer concerns
  • Audience trends

Competition is fierce for online lenders, banks, and mortgage brokers. Low interest rates are driving consumers to make major purchases, while economic strain is flooding the financing sector with applicants.

If you’re an auto title lender, you want to attract users who are searching for title loans online you should check out 1800cartitleloan.com. If you’re a credit union, you’ll want to research what applicants within your target audience are interacting with via social media.

Knowing what your target audience, and competitors, are interested in can help brand managers develop effective strategies based on the most up-to-date information.

4. Create Personal Connections

Current social media algorithms favor organic, direct engagement between users. This builds a more authentic connection between brands and their audiences, which is proven to boost retail sales and repeat customers. 

Cold and clinical branding is out of style, and people are looking for companies that show a true human element in their marketing and products. 

Social media advertising is the most personal way to reach consumers, since sponsored posts appear in each user’s personal newsfeed. 

5. Uphold Compliance Standards

Regulatory and legal compliance is one of the main pillars of the finance and banking industry. These parameters ensure that banks take the highest measure to protect their partners and customers from fraud, negligence, and other economic threats.

Additionally, false claims and misleading online information puts consumers at risk.

Social media helps financial institutions prevent this by imposing rigid guidelines regarding information, advice, and use of  technical jargon. 

These rules, laws, and digital templates help to maintain the integrity, security, and stability of the consumer finance industry. 

Digital branding and social media advertising is the new billboard strategy as we enter 2021. Rather than being a fringe tool for tech-savvy startups, it’s becoming a necessary part of any corporate marketing plan. 

Using social media is an effective way to create a direct, personal connection between companies in the finance sphere and mainstream consumers.