Taking a Different Approach with Social Media

  With memories of the financial crisis that negatively affected millions of Americans still in place, banks need to approach a different marketing strategy to illustrate their social responsibility to the community.  Banks are making profit, like Morgan Stanley, that almost has doubled the amount of common equity before the financial crisis in 2008 (propublic.org, 2011).  A good relationship and trust within communities will help increase revenue and better compete with other banks.  Social media affects all industries, people, and politics.  Social media influenced the 2012 presidential election with millions of Americans tweeting on Twitter, commenting, and posting information on social sites.  President Barack Obama and Mitt Romney used social media to reach out to the young population in order to bring in more votes (allvoice.com, 2012).  The power of social media and the impact it has on financial institutions can distinguish the trust consumers have on certain banks.  Keeping customers satisfied is critical to maintaining loyal customers and from preventing customers from switching to other banks (Jumaev & Hanaysha, 2012).  People prefer two-way communication in regards to products and services rather than one-way communication.  Social networking sites offer financial institutions the opportunity to reach new customers, using social sites as sales channels will help increase potential customers who are out of reach or who may inquire with questions.  While electronic devices continue to expand and facilitate financial transactions, enabling new channels to continue the communication, social media will help maintain customer relationships.


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