As more banks use social media platforms, they are encouraging consumers to view social media as a way to access resources and to have their questions answered quickly. Banks and retailers alike use social media to connect with consumers. However, they use it in different ways and have varying degrees of success, says Ant Ozok, associate professor of information systems, in The Daily Record.
Ozok notes that mortgage services and credit cards are difficult to effectively promote on social media due to their complexity, including the regulations surrounding them. Consumers are also more likely to have a negative reaction to targeted ads on social media platforms from a bank compared with a clothing store, for example, says Ozok.
For now, he argues, “Unlike retailers, banks have not found a way to crack social media in a useful, meaningful and profitable way.”