Social Media Banking Strategies

This paper focuses on the use of social media in the banking sector. It investigates why banks decide to use social media and the obstacles they face. The study describes the different goals of social banking: advertising purposes (“showcase”) versus interaction with clients and prospects in order to develop strong relations through an open, continuous and transparent communication. The paper aims at understanding the reasons behind any use of social banking and consequently the expected objectives banks want to achieve in terms of visibility, loyalty, brand awareness, engagement and reputation. Finally, the study presents a “path of development” of the social media process in banks, focusing on the use of marketing tools. The paper also explores the relationship between social media strategies, customers’ behaviour and reputation for the banking system, compared with other sectors.