For any business, customer relationship building is a top priority. For banks it is an even bigger priority because the competition is stiff and customers’ needs and wants are evolving. Banks, small or large, must keep pace with the speed of technological advancements. As Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, said, “In the new world, it is not the big fish which eats the small fish, it’s the fast fish which eats the slow fish.”
Millennials, the generation born between 1980 and 1994, now outnumber the Baby Boomers. Banks must understand this generational difference in order to stay competitive. Millennials have different preferences for communicating with the banks across multiple digital channels leading to the rise of alternate banking services such as mobile payments, Peer-to-Peer (P2P) payments, etc. They see value for convenience, mobile support and ease of use.
Since the onset of social media platforms such as Facebook & Twitter, Millennials’ expectations and their relationship with the banks have been changing rapidly. They increasingly expect the banks to offer services via these platforms. Therefore, banks are now making efforts to leverage these rapidly emerging platforms to offer social banking experience to their customers bringing a shift in the way customer relationship is managed.
Because of increasing customer demands, banks are opening their doors to new online payments via Facebook and Twitter. Some banks allow users to tweet money to others while others allow transfer of money through Facebook. In addition to funds transfer, banks are also offering more payment options. These options include the ability to make payments to Facebook Events and gift payments to friends and family for special occasions.
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From improving the face of customer service to integrating online payment services, social media is going to enable banks to transform the whole customer experience. As a result, we’ll see many banks and fintechs integrating with social media platforms in the near future.
TPS, a leading cards & payments solution partner, is working with various banks & telcos across the world and helping them adapt and prosper in a new “Millennial Age” of digital banking. With TPS’ digital banking solutions, banks are providing customer comprehensive banking services right at their fingertips. Using the features available in TPS’ Social Banking Solution, customers can avail banking services on social media platforms including:
- P2P Payments
- Split Bills
- Crowd Funding
- Request Money
- Bills Payment
- Donations
- Balance Quest & much more.
As data adoption accelerates and customers move towards digitization, it is time for banks to transform the way they work. Offering a personalized social banking experience will not just attract new customers, it will also offer them great competitive advantage.
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