- Where Insurance & Technology Meet

Consumers Interested in Social Media Connections with Financial Institutions, but Lack Awareness

The results of a recent survey by Fiserv of 3,000 US consumers indicate that the population has wide spread interest in using social media to connect to Financial Institutions, but lacks awareness of the ability to connect to these institutions.

Some of the key finding are:

  • Younger customers are more likely to use Social Media, but older demographics are not far behind with 78 % of ‘Boomers’ and 65% of seniors using social media;
  • Branding, reinforced by social media, is becoming a key to consumer connections to companies; especially with younger demographics;
  • Only one in 10 social media connected consumers has connected with a bank or credit union;
  • Over one third of those not connected to financial institutions have come interest in connectiong;
  • Consumers who do connect with financial institutions via social media (typically Facebook) are using the connections for marketing (receiving information – 66%, receiving offers – 32%), comparative shopping (reviewing opinions, posting questions – 31%), and performing self-service activities (30%).

While there were no startling revelations in the results, this is an excellent summary of the landscape in the US. There may be some differences in Canada, but in absence of a specific Canadian study, this is likely a good proxy.

Fiserv suggests that Financial Institutions have a window of opportunity to get caught up, but this window will not be permanently open.  Fiserv data support the conclusion  that becoming part of the social network fabric is a requirement, not an option.  The report concludes:  “Now it’s time for financial institutions to embrace social media. Leveraging social networks, financial institutions can foster deeper, more personal relationships, resulting in more profitable and loyal customers.”