FNB has been active in developing banking apps in Facebook. The bank believes that social media banking and ecommerce will eventually be part of the banking revolution as it gives choices to the customers on how they want to interact with their banks.
It just so happens that FNB is one of the few banks that are implementing this technology at a time when people are not ready to use banking apps in conjunction with their social media accounts.
Add the fact that Facebook does not have cleanest of records when it comes to securing users and information that their users share.
In South America, Facebook is a very popular social media platform with over 6 million users. It is not surprising that FNB wants to tap into their user base for social media banking. Twitter also has about 1.5 million users in the country, LinkedIn about 1.8 million and Mxit has 10 million.
FNB view social media as a channel that complements their existing channels like branches, call centres, online and mobile. The bank also added other channel that is always accessible to the customers that can handle many if not all of their needs.
Since customers use social media to do research on their banks, according to a study by the Aberdeen Group, customers are 51% more likely to buy or use the services of a bank if they already have a social connection.
The emergence of many banking channels gives customers the choice on how to transact with their bank depending on their preference. Some do prefer digital interaction while others want face to face interaction. These new social banking channels will eventually make banking relevant in social media.
- South American social media users: over 6 million users on Facebook, over 1.5 million users on Twitter, 1.8 million on LinkedIn and 10 million on Mxit
- Customers are 51% more likely to buy a brand if they already have a social connection
Michael Jordaan, FNB Chief Executive Officer: “Social banking or commerce is a natural extension of our digital innovation drive, which aims to provide customers with a choice of channels to engage with FNB for their banking and transactional needs. Customers have personal preferences that are driven by their circumstance and life stage — some customers for example prefer digital interaction while others prefer face to face interaction.”
Covered by my Visible Banking Team
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