The aim of any business is to be successful and profitable throughout the lifetime of the organization. The evolution of communication technology in recent years has helped make this possible by improving a business’s ability to network with its existing and potential customers. What once required face-to-face conversations and the physical exchange of contact information can now be done in an entirely virtual environment with just a click of a button. financial institutions are beginning to understand and embrace the power of social networking as it relates to their day-to-day business activities as well.

Advances in communication technology, such as texting, blogging, emailing, media sharing and gaming, have created new social norms and revolutionized the way people communicate. It is no wonder, then, that the financial services industry is beginning to use various forms of Computer Mediated Communication to enhance customer service and improve current products and services. MySpace, and LinkedIn, which are used primarily to maintain or build connections among users. increasing sales outreach or personally connecting with their customers to meet their banking needs – social networking.

Social networking sites represent a large market with tremendous growth potential that can be easily targeted by financial institutions if they know how to use these sites to their advantage. Whether educating customers on new services, boosting customer confidence, The cues that help facilitate understanding in a face-to-face environment are often removed in a social networking environment. Though some websites offer an audio visual element, social networking is largely text-based, Social networking uses these same basic building blocks but accomplishes the end results in a slightly different way.

Social networking is a form of collaboration and networking where individuals develop groups and associations, often forming a virtual community. While social networking is possible in a face-to-face setting, such as on a college campus, it is most often seen online in a CMC environment. The size and popularity of the “communities” created by MySpace and Facebook and other social networking websites have experienced substantial growth as more and more people invite their acquaintances, co-workers, friends and family members into these virtual communities.

 

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What Every Financial Institution Should Know About Social Networking