Tellers to Tablets - Can Social Media become the Payment Channel of tomorrow?
It is really hard to ignore the large scale adoption of social media. Already one tenth of the world's population has a Facebook account and the number of people logging onto YouTube every month is more than 500 million. Businesses are also flocking to social media and leading the charge here is consumer goods closely followed by other segments.
Banks have been able to adapt well with the digital world with social media and mobile payments emerging as the next big destination for banks.Those who get their first could reap rich rewards...
The relevance of banking via social media offers the brick and mortar banks a clear opportunity to expand their service portfolios and capitalize on a new generation of e-bankers. The global trend of consumers using disruptive technology and social networks as a primary channel through to manage accounts and carry out transactions is a clear indication that the financial services market has evolved.
Consumers are now using established platforms for integration of mobile solutions like smartphones and tablet PCs to transact and manage accounts - basic banking services which previously were in the sole control of banking institutions.
Also, the role of social media is to compliment the banks to expand & improve their service offerings to newer markets to attract more customers. Technologies today help the banks migrate onto the social graph (the point at which the payment technology converges with social networks) and capitalize on the interest of mobile driven customers. Experts forecast that the rise of the social graph will facilitate the replacement of payment via credit cards as early as 2020.
On the other hand, many banks are still contemplating on whether to join the Social Media Bandwagon primarily because of regulatory issues and the humongous amount of technology enablement required. Many banks cite regulatory hurdles as one of the largest deterrents to embrace social media. Also, to extract the most out of this new age media, banks will need to create or harbor optimal IT environments that support these new age channels perfectly.
So, are Banks ready to make the change - shed their legacy filled IT worlds for more nimble and agile IT environments? Can Social Platforms or Social Media really become the Payment Portals of the future? Do watch this space for more.