How Social Media is Changing Fintech and Other Startups

Social Media and Fintech Startups

In the last 10 years, social media has utterly exploded. Today, every business, startup, or corporation is almost guaranteed to be active on some form of social media. Whether it is Twitter, Facebook, Snapchat, Instagram, social media has become a massive part of business and is help to revolutionize Fintech and the business world at large.

The rise of smartphone use, especially amongst Millennials, has driven Fintech startups to herald in a new era of financial services. But all businesses have been getting involved in one way or another. There have been suggestions that banking is having it’s “social media moment” – and with online and mobile financial services becoming more and more prevalent, it is hard to argue with that claim.

Social media has transformed the way banks and other businesses interact with customers; social media data can be used to help people get a loan or credit, or open a bank account. Customer service has also undergone a massive transformation thanks to social media. For example, in September 2014, Econsultancy compared the response rates of 16 banks on social media in the UK, with the quickest response coming in at just three minutes, and the longest at one hour and twenty-four minutes. Social media has allowed large volumes of customers to voice grievances through these new channels, and thus feel more connected to the business that they are dealing with.

However, social media has also driven a massive upheaval in traditional marketing techniques. Social media marketing can no longer be ignored as a trend, it is incorporated wholesale into a company’s overall marketing strategy. Online retail P2P lenders like Lending Club and Prosper, and small business lenders like Kabbage and OnDeck, experienced exponential growth through using online and social media techniques as their central marketing strategy.

Even more established companies have had to turn from solely traditional marketing techniques – American Express has given the opportunity for customers to link their Facebook or Foursquare accounts with their Amex card, and then offering deals based on data drawn from these accounts. American Express even won awards for this intuitive and innovative technique!

Data isn’t the only way to utilize social media for marketing, Instagram in particular has become incredibly popular for Travel-tech start-ups and Online Travel Agencies. Instagram has been a game changer, with 500 million users it is giving these sorts of businesses the opportunity to captivate users with incredible photographs – in this case of the fantastic destinations that are available round the world. For example, Justfly, an Online Travel Agency run by Matt Keezer and Momentum Ventures, has a particularly engaging Instagram feed, and will often offer deals on the destinations that they display! In this case, pictures speak louder than words, and this has not gone unnoticed by Instagram. They have just unveiled new business tools geared toward business owners, so clearly social media is more than happy to embrace its new role in marketing and business.

Social media is also being used by some banks to design and deliver revolutionary new products. For example, in Turkey, DenizBank turned traditional banking on its head but offering banking services through Facebook. Customers have the option to connect their Facebook and bank accounts, they can then use the service to initiate money transfers and monitor spending.

Social media has completely redefined the entire business landscape. It has changed marketing techniques, customer service, and even fostered the creation of new integrated ways of handling money and doing business. If this current trend continues into the future, we could soon see the majority of our daily lives and dealings taking place online via social media.

(Sponsored series via Momentum Ventures)

By Josh Hamilton

Gary Bernstein

AWS General Release of Amplify Flutter

The AWS General Release of Amplify Flutter The Amazon Web Service has announced that the Amplify Flutter is now generally available in a way to help make flutter apps easier and more accessible. According to ...
Kevin Julian

Patients Increasingly are embracing technology, and so must the pharmaceutical industry

Patients Increasingly Embracing Technology COVID-19 has driven home the need to use digital solutions more broadly, which means C-Suites may be turning to their CTOs for advice As lockdown restrictions went into effect due to ...
Robert Van Der Meulen

Focusing on Online Gaming Security During Development

Online Gaming Security Infrastructure Updated article: June 2nd, 2020 There are millions of gamers around the globe and as of 2018, video games generated sales of US$134.9 billion annually worldwide. As video games continue to ...
Isc2

Episode 2: Coronavirus Phishing Emails and Work-from-Home Meetings

Coronavirus Phishing Emails What to watch out for as scammers exploit pandemic panic, and tips on how to attend meetings while working from home. Working from home this week? There are a few challenges and ...
Patrick Joggerst

Why Platforms Matter as UCaaS Adoption Continues to Soar

UCaaS Adoption Continues to Soar Industry analysts agree – the unified communications-as-a-Service (UCaaS) market will continue to grow by leaps and bounds in 2020 and beyond. Mordor Intelligence, for example, predicts a compound aggregated growth ...
Gary Bernstein

Mapping Crime Though Big Data – Leading Sources

Online Crime Maps Online crime maps is a set of tools used by law enforcement agencies to map and make an analysis of crimes and incidents in order to find possible patterns in them. Online ...