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Social Media for banking transactions – Pros & Cons

Posted By admin / September 8, 2016 / Consumer Protection, Corporate, Employment, General Legal, Startups / 0 Comments

Social Media Marketing has proven its effectiveness for enhancing the brand image of companies in different fields. Now, banks have embraced social media to leverage their brand images and interact with wider consumers. Recently, ICICI Bank has denounced its ‘icicibankpay’ service via Twitter, which enables its customers to transfer funds, check account balance, view mini account statement or recharge prepaid mobile phones. Just before that, it was Kotak Mahindra that introduced its ‘Kay pay’ service through Facebook to transfer money to one other. Even the RBI has made good use of social media by sending alerts and announcement via Twitter. It certainly has refurbished the tech savvy presence of RBI across India. The bottom line is that the social media platform is considered as the most outstanding way to engage with end consumers in the form of consumer interaction, convincing consumers to associate with their banks and many more. Now, other banks like SBI etc are also following this lead to enhance their brand building and increase their business.

 

The response of users towards ICICI’s latest social banking services is overwhelming because now customers need not switch tabs or applications to access ICICI’s ‘Pockets by ICICI Bank’ or iMobile Smartkeys’ services on social media. Moreover, the customer doesn’t need to know the account number, bank branch or IFSC code to transfer funds or send money to any contact on social media. One just needs an e-coupon in their name which can be redeemed in 3 days and in order to redeem it, a pass code is sent to the registered holder’s mobile. This password can be shared with the person to whom the money needs to be transferred.

 

The Goods:

  • All these tweets, DMs to the Bank twitter handle are well encrypted to assure as well as to ensure security of customer’s bank account/personal details.
  • Social media platform will allow banks to personalize customer conversations at minimal cost in comparison to the cost incurred in deploying employees at their branches or call centers.
  • It will help banks to broaden their geographical horizon and widen their consumer/user base.
  • The young people, aging between 18-29 years, are often found attached with their smart-phones and on different mobile apps, will then get attracted to convenient use of social media banking to make vital transactions. It will enable banks to leverage their attention and persuade them to become their prospective consumers.
  • It will give an innovative avenue to people to transact and execute banking transactions via their social media accounts.

 

The doubts…

  • It may be well-suited for query based services and viewing statements but in case of money transactions, there are still certain apprehensions on security of social media banking.
  • Social media, in other words means transparency whereas banking is all about maintaining confidentiality. People are still skeptical in conducting high-value sensitive transactions.
  • In comparison to the efforts put in by banking employees in order to persuade consumers to switch their bank accounts, social media showcase signs of ‘lower influence’.
  • Then, there is a risk of backlashes in social media banking which may impact the repute of the bank.

 

After discussing the goods and the doubts, banking personnel are quite sure about the security of social media banking and are positive about its effectiveness for both banks as well as consumers.

 

Written & Published in iwilindia.com

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