Banks and Their Models for Modern Communication and Business via Social Media

AUTHOR(S):

TITLE

Banks and Their Models for Modern Communication and Business via Social Media

ABSTRACT

Widely recognized as it is, bank institutions but also most business institutions are active in social media and are valuing this medium not only as a means to reach out to customers but also to realize business. In banks’ practice there are four main models for applying of social media banking – use of social platforms as a marketing tool, as a communication channel as well, also as a channel for feedback and reactions and lastly, but most important - for transactional social banking. For the latter, banks allow their customers to realize active operations. There are successful examples already present from banks to implement transactional social banking. In this paper a case-study is presented about applying the models of social media banking in the five largest banks in Bulgaria. The outcomes point out that the banks have been using the first three models successfully already, but are rather indecisive about applying and ultimately neglecting the use of transactional social banking with the opportunity of active operations on social media platforms. Since the reach of social networking but also of social banking is widening, a forecast can be made for growth and affirmation of transactional social banking as a new, innovative digital banking channel.

KEYWORDS

social media banking, models, marketing tool, channel for communication and reaction, transactional social banking , marketing intelligence

REFERENCES

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Cite this paper

Silvia Parusheva. (2016) Banks and Their Models for Modern Communication and Business via Social Media. International Journal of Economics and Management Systems, 1, 64-68