The Banking Executive Magazine - March 2022 Issue

Tiktok for Banking and Finance INTRODUCTION This article sheds light on the use of TikTok in banking and finance. The article starts by introducing TikTok and its main features, how to down- load it, and how to use it. Following this introduction, the article overviews the market growth of Tik- Tok APP and its rising popularity and world impact. Following this overview, the article focuses on the use of TikTok APP in banks, and in fi- nancial marketing, and for bank dig- ital attraction. The article considers case studies of the use of TikTok APP by various banks. The article reflects on the future of TikTok and con- cludes with tips and recommenda- tions for Arab banks to explore potential use and benefits of TikTok and avoid the jargon use. WHAT IS TIKTOK? TikTok is a popular social media app that allows users to create, watch, and share 15-second videos shot on cell phones. With its personalized feeds of short videos with music and sound effects, the app is notable for its good quality and high level of en- gagement. Users can add effects like filters, background music, and stick- ers to their videos, and can collabo- rate on content and create split- screen duet videos even if they are in different locations. TikTok joined the ranks of social media giants in record time. It had about one billion active monthly users worldwide by the start of 2021 and had been downloaded in the United States at least 200 million times, according to Wallaroo Media. Like all social media companies, Tik- Tok raised concerns about the poten- tial use or misuse of the private information it gathers about its users. The difference is that a majority of TikTok is Chinese-owned. The name TikTok refers to the short format of the videos. Launched in 2016 by the Chinese startup company ByteDance, TikTok growth in usage began in late 2017, when it acquired a rival app, Musical.ly, and ported over its 200 million account list to TikTok. TikTok is worth about $50 billion. Marketing on TikTok is still in its in- fancy, but a growing number of agencies are eager to help brands create the kind of quirky content that gets clicks on TikTok. Like many other social media sites, TikTok also makes money from in-app purchases. Users can buy coins priced from 99 cents to $99.99 and use them to tip their favourite creators on the platform. The com- pany grossed $80 million from in- app purchases globally, according to an April 2019 report from Sensor Tower. In the first quarter of 2019, user spending reached an estimated $18.9 million globally. TikTok is one of the world's most popular social media apps and is available in more than 150 markets and 75 languages. The app hit close to two billion downloads in March 2020, with 104.7 million downloads alone as of January 2020, according to market analyst Sensor Tower. The app's most notable demograph- ics are: • 69% of users are between the ages of 13 and 24. • 60% are female. • Its users spend an average of 46 minutes per day on it. • A quarter of the app's downloads come from India, with more than 200 million active users. • Usage in Thailand is increasing, ISSUE 159 MARCH 2022 the BANKING EXECUTIVE 9