cloud-growth-hacking-saas

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

Josh Hamilton

​Josh Hamilton ​is an aspiring journalist and writer who has written for a number of publications​ involving Cloud computing, Fintech and Legaltech​. ​Josh has a Bachelor’s Degree in Political Law​ from ​Queen's University in Belfast​​.
Studies included, Politics of Sustainable Development, European Law, Modern Political Theory and Law of Ethics​.

View Website

CONTRIBUTORS

5 Things To Consider About Your Next Enterprise Sharing Solution

5 Things To Consider About Your Next Enterprise Sharing Solution

Enterprise File Sharing Solution Businesses have varying file sharing needs. Large, multi-regional businesses need to synchronize folders across a large ...
Technology Cloud Contributor

IoT Data Centers – “We’ve Always Done IoT, We’re Just Terrible At Marketing It”

IoT Data Centers An often repeated phrase by many data center professionals is “We’ve always done IoT, we’re just terrible ...
73% Are Using Internet Of Things Data To Improve Their Business

73% Are Using Internet Of Things Data To Improve Their Business

Internet Of Things Data According to the Cisco Visual Networking Index, M2M connections will represent 46% of connected devices by ...
When it Comes to the Communications Cloud, You Cannot Manage What You Cannot Measure 

When it Comes to the Communications Cloud, You Cannot Manage What You Cannot Measure 

The Communications Cloud As more and more real-time communications – whether voice, messaging, video or collaboration – move to distributed software ...
Open APIs Alone Won’t Change Banking

Open APIs Alone Won’t Change Banking

Open Banking API's Most people think of banks as one monolithic entity, but they are actually made up of hundreds ...
How Blockchain Has Unexpectedly Improved Big Data Integrity

How Blockchain Has Unexpectedly Improved Big Data Integrity

Big Data Integrity Blockchain technology was developed to improve the integrity of bitcoin. However, as bitcoin became more popular, its ...
Opportunities and Pitfalls When Hiring a Chief Data Officer

Opportunities and Pitfalls When Hiring a Chief Data Officer

The Chief Data Officer As part of their digital roadmap, organizations are increasingly taking advantage of big data and making ...
How to Transform Your Operating Model for the Cloud

How to Transform Your Operating Model for the Cloud

Transform Your Operating Model It can be tough for established organizations to embrace change, so when they start working with ...
Apcela

Direct Connect To Cloud: Solving For Performance, But At What Cost?

Direct Cloud Connect Executives embarking on the journey to becoming a digital enterprise are essentially asking IT to enable the ...
Best Practices in Disaster Recovery and Business Continuity

Best Practices in Disaster Recovery and Business Continuity

Best Practices in Disaster Recovery Hope for the best, prepare for the worst, and expect to be surprised. While that ...