Social media in financial services: six trends for 2016

Last week I had the pleasure of debating the role of social media in banking and finance with Nick Jones (Head of Digital Communications at Visa Europe) and Keith Lewis (Social Media Manager at Zurich) in the latest CIPR C-Suite podcast. Podcast host Russell Goldsmith has blogged about it here, and you can listen to the podcast on iTunes.

Social has transformed the way businesses engage with their customers and potential customers, and that’s as true in financial services as any other industry. Despite the three of us coming from quite different parts of financial services, we all felt that this is an exciting time for social in the sector.

Digital is now the primary way most of us access our banking services – I haven’t been in a branch or even phoned my bank in years – and social is a central part of that experience. So what lies ahead for social in the financial services sector? Let me jump on that year-end bandwagon and predict some trends for 2016…

Consolidating rather than innovating on platforms

As Nick commented on our podcast, when we were first getting into social four or five years ago, new channels would come along and everyone was happy to experiment for a month or two before disposing of it. Platforms would rise within weeks – and fall away even more quickly (who remembers Ello now?).

Social has grown up, and as it gains the attention of the c-suite there’s more demand to focus attention – and spend – on platforms that already have established audiences, ensuring these deliver tangible returns. Tolerance for experimentation will fall.

Fighting for attention on Facebook

Facebook recently rolled out its Instant Articles feature – which means users are served a version of content from Facebook’s servers, rather than directed to publishers’ own sites. Early indications show this could be a huge change to the way the internet giant directs traffic to websites outside of its own ‘walled garden’.

Commentators are widely predicting that Facebook’s algorithms will prioritise Instant Articles over links to websites. And while it’s traditional media publishers who are being courted to publish direct to Facebook now, brand publishers are the next logical extension. Expect to have to pay Facebook to get eyeballs on your blog content before long.

Banks finally embrace Instagram

2014-15 saw many brands dive into Instagram, but financial services firms have been slow to follow suit. Financial products are necessarily complicated – as are the regulatory demands to explain these in detail, which has led the sector to focus on long-form content.

But people find finances complicated – scary, even – and snackable content provides a means by which we can demystify what we do. A few are starting to dip their toes in the water, most notably Capital One and American Express. In the coming year more banks, insurers and payment providers will switch to visual formats in order to make their products simpler and more appealing, particularly for millennials – learning from media and other industries how to boil down messaging for the format.

Making conversation to conversion seamless

The growth in mobile wallets means that in a couple of years payment has gone from being the most annoying part of any e-commerce experience, to being simple.

Twitter, Facebook, Pinterest and Instagram have introduced buy buttons, making social and mobile commerce integrated. App developers have monetisation front of mind, so that conversation leads seamlessly to conversion. FinServs are likely to get in on the game this year, using social to collect leads directly from apps.

Mobile wallets get social

Taking that one step further, mobile wallets are becoming even more integrated into IM 3.0 apps. This innovation has been driven from the East, with Chinese banks offering payment services within WeChat as long ago as 2013.

WeChat has continued to build more financial products into its offering, from merchant payments (a bit like Shopify) to a nascent Private Bank called WeBank.

This trend continues to spread across emerging markets – where people are less likely to have traditional bank accounts – with WeChat-powered payments breaking through in Africa.

This innovation could spread to mature (Western) markets in 2016, as tech firms become bigger players in the finance space. Millennials, in particular, don’t just expect to talk to their bank on social – but expect to be able to transact there too.

Keeping it real(time)

While the integration of transactional and lead generation features into a wide range of social platforms could allow financial firms to generate tangible income from social, at the same time it places greater demands on those managing social channels. Customers expect 24/7 presence for customer services, and the growth of channels like Periscope require community managers to be more responsive to spot and respond to issues.

2016 looks set to be a demanding year for social media managers in finance, with increased demands from both consumers – to respond and provide better and more integrated services – and from those in the boardroom to show value. But if we rise to the challenge, the year ahead could be when social grows up and becomes a transformational force in finance.

What do you think of my predictions? What do you think we’ll see in 2016? Let me know in the comments below.

 

The future of business is now

Following on from my talk on mobility and connectedness at Intranatverk last week, I’ve pulled together this quick blog post for Business Reimagined on how technology is changing the way we work, making predictions about new ways of working a reality for more and more people.

The business of reimagining business is nothing new. Popular narrative from the middle of the last century painted the new millennium as an age of domestic automation, jetpacks and interplanetary travel – and all turned out to be some way off the mark.

More prescient, though, was Brave New World author Aldous Huxley, who in 1950 was asked to predict what work would be like in the year 2000. He wrote:“…offices will be relocated in small country communities, where life is cheaper, pleasanter and  more genuinely human than in those breeding-grounds of mass neurosis, the great metropolitan centers of today.”

Granted, he was wrong about quite a few things (not least that  the 20-hour work week would become standard) and in the year 2000 most of us were firmly chained to our desks.  But in the thirteen years since, the digital workplace – the ecosystem of communication tools, social platforms and business systems within the enterprise – has succeeded in making Huxley’s prediction something closer to a reality for a growing number of workers.

The revolution in technology since the turn of the 21st century has been accompanied by a seismic shift in working cultures that has seen the commute and the 9-5 workplace become a thing of the past.

The arrival of the digital workplace has led businesses to completely rethink the way they work. By moving the tools people need to do their jobs online, businesses have made it possible for their employees to work from anywhere – so that work becomes what you do, not where you go.

Already one in ten office workers in Western Europe are mobile, working all or part of the time from home, and this is growing by 6% a year.

Mobility, supported by a good digital workplace, has a raft of well-documented benefits, including improved productivity and reduced costs, as well as making employees happier and healthier. Businesses are quickly realising that mobility isn’t a nice to have; in a world where competitive advantage is everything, becoming more responsive and productive is essential.

But while technology is a central component of the digital workplace, making a success of it means focussing instead on people – not designing mobile websites, but designing policies, places and online services for people who are mobile.

For example, the digital workplace allows smart companies to change the way their use physical space; instead of banks of desks used from 9-5, they give people well-designed space to think, work alone, or to collaborate. Not simplyless space, but the right space and place for the task at hand – whether that’s at home, on the road, or in the office.

Design matters. If the primary way those who work for you experience the organisation is online, the online experience can’t be a bad one. Successful mobile organisations recognise the importance of brand, design and user experience in the digital workplace.

Enterprise mobility is a decentralising force, but this shift can lead employees to feel disconnected from their colleagues. Successful organisations work to establish community through social intranets so that remote workers can communicate with – and feel connected to – their colleagues, wherever they’re working.

By making it possible to work whenever and wherever we choose, the digital workplace is ending the tyranny of the daily commute. And all while making our businesses more productive, and more profitable.

Today’s technology enables us to do business the way we’ve been reimagining it for decades; enabling people to work more flexibly in ways that benefit employees, and the bottom line.