An in-depth look at how social media impacts the financial services

Abstract

The presence of social media has grown exponentially over the last decade in relation to its use in financial services. Mainstream media is no longer the only option and companies that fail to acknowledge the use of social media can suffer damaging consequences. The advantages to using social media in relation to mainstream media far outweighs the cons and it can overcome certain obstacles that are otherwise faced when approaching the sector in a traditional way. Therefore social media is not a substitute to traditional media, rather an extension or a helping hand to further the business and reach new customers and penetrate different markets. This study helped the researcher understand how social media affects a financial service’s presence in today’s world. It analyses how consumers perceive social media of firms, how it is used and it compares how social media impacts services locally versus the impact it has in foreign countries. Additionally, it gives an insight on how firms see social media and its usage from their perspective. Furthermore, this study aims to give an indication on how social media will continue to grow and develop and the way it can impact finance moving forward. Ultimately, firms will have to capitalize on social media to keep up with other companies and achieve their financial goals through greater exposure.