Financial institutions must embrace social media
By Tina Kyei
There are a lot of financial institutions in Ghana and more are likely to be opened in the near future. Competition is rife and the consumer is now very much informed.
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The consumer is inundated with so much information through traditional channels such as television (TV) and radio.
Most sectors including financial institutions have done extremely well in coming into people’s homes. What I mean by this is that people can view bank adverts on TV; they can wake up in the morning hearing about the services both on TV and on radio.
But if financial institutions are rushing into people’s homes, why are they being so slow in getting to the consumer online? Why so much delay? Why are the financial institutions procrastinating?
The answer is very simple. They are being short-sighted here and not looking at things in the long term. Their short-sighted goals are focused on getting the consumers in the market to open accounts. What about the next two or three years?
Do you know that when you have a potential customer online and this person poses a question on your Facebook page and you answer it, you have provided valuable information and you will benefit from it? You might be asking how? Do you not realise that this person would go and spread how effective your bank is to their friends and family on Facebook? Those online have the same needs as people walking on the streets.
Financial institutions need not be complacent, but focus on having a strong online presence.
Ghana is one of the fastest growing economies in the world and according to a research by Barclays Bank; Ghana is one of the preferred African countries for British retail businesses planning to expand.
I read an article in the Business World Magazine entitled: “Chicago Businesses Eye Ghana’s Burgeoning Market.” According to Mr Sam Ntum, Senior International Trade Specialist, Illinois Department of Commerce and Economic Opportunity, “Ghana is coming up strongly as the preferred trade and investment destination in West Africa and increasingly engaging a lot of attention from American companies”.
It is necessary for financial institutions to be found online as these British and Chicago businesses are more likely to check the presence of businesses online. Having a strong online presence is one of the reasons why business concerns need to have some insights into Social Media.
The moment social media is mentioned the first thing that almost everyone thinks of is a Facebook page, twitter, LinkedIn and all the other social media channels. But now let’s not talk about the different social media channels and let’s focus on what matters to your financial institution.
TMichael Jordaan, CEO of First National Bank in South Africa who is known to be a strong advocate of social media, said, “social media allows our bank to reinforce our core brand value of helping our customers achieve success and positions our organisation as Africa’s most approachable, trustworthy and technologically-savvy retail bank”.
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Financial institutions should not be complacent and but come up with innovative ways to get the consumer. Social media is a channel that financial institutions can use to increase revenues and reduce expenses.
The writer is a Management Consultant
Writer’s email: [email protected]