Why Banks Need to Take Advantage of the Social Media Moment

By Tina Seitzinger, Senior Director of Influencer Marketing & Paid Social, Vericast

Consumers are increasingly seeking financial guidance and comfort from non-traditional sources. In fact, according to recent data from Vericast, less than half of all consumers currently seek financial advice from a bank, credit union or financial advisor.

The patterns among Gen Z might be the most surprising, though. According to results, 34% of Gen Z consumers are obtaining financial advice from TikTok, 33% from YouTube and only 24% from financial advisors.

TikTok in particular is democratizing finance and financial topics; it is giving “fin-influencers” a place to share their stories and tips around finance. Data provided by TikTok found that the hashtag #fintock has over 1.6 billion views and #moneytock has over 14.3 billion views, proving that more serious topics are resonating with users on the platform.

So, how can banks and other financial institutions adapt to this new world? It’s critical they develop a social media strategy for both paid and organic content. Social campaign content presents an opportunity to meet consumers where they are today and build a new community over time.

Social media best practices for banks

Social media marketing is a necessary part of building customer relationships and providing personalized customer experiences. It offers an entirely new way of connecting to people and communities.

The first step for banks launching a social campaign is defining the message, and second is determining the content mix. To effectively build awareness and generate engagement, the content must be impactful and resonate with users.

Here are five social media marketing best practices for banks to consider:

• Emphasize the key message early: 63% of TikToks with the highest click-through rate highlight the key message or product within the first three seconds of a video. Users on social media have an extremely short attention span, so it’s crucial that banks get their message across promptly.
• Leverage trends: Similarly, 21% of videos with the highest view-through rate leverage popular trends, effects, or music. Banks should tap into trends such as vlog-style and tutorial-style videos to garner additional exposure.
• Humanize the business: Banks should use real people in campaign content rather than static imagery to humanize their message and brand. Raw, authentic content and messaging will go a long way in building a strong connection with the viewer.
• Be inclusive: Inclusive imagery and messaging is another way to ensure your brand comes across as authentic. Banks must represent diverse communities on social channels to ensure the campaign resonates with a wide audience. This encompasses the imagery, language, tone and context of the content.
• Nail the basics: Finally, don’t forget the basics. Social media videos should always be full screen (vertical) and high-resolution, use music, voice-over or a combination of both, and be short, sweet and to the point.

Integrate campaign content & influencer marketing

According to a recent study, 75% of Gen Z and millennial consumers who seek financial advice through social media say they follow specific social media influencers who create content relating to personal finance. Of those who sought out guidance, 45% say they put the advice to action.

It’s clear that influencers can make a real impact in the financial ream. By sharing candid, personal experiences in real-time, viewers will feel a connection and be encouraged to do the same or take action based on what they see. However, influencers do not have the same training as a certified financial advisor, so it’s important to encourage viewers to do their own research before making any financial decisions.

Consumers’ relationships with financial institutions are changing drastically. Rather than be left behind, banks can take advantage of the shift by leveraging social marketing to build deeper connections with customers.