The Banking Executive Magazine - March 2022 Issue

Tiktok for Banking and Finance TIKTOK CHALLENGES FOR BANKS Despite the vast potential, various challenges may be facing banks in using TikTok. These include: • Strategy: A challenge for banks is to identify its customer potential use of each social media platform and to develop a corresponding strategy that deliver reasonable outcomes. In the case of TikTok, this is likely to be an engagement strategy. • Content: Content must be timely and relevant for customers and nu- anced to cater to different platform characteristics and audiences. • Regulation, Data Security & Safe- guarding: TikTok platform is not suited for real financial advice or sales, especially in highly regu- lated markets like the United King- dom. It is better to think of using the platform to provide hints and tips which build engagement with financial content and encourage better decision making. Banks need to consider risks to their brand that social media platform issues like online bullying and pri- vacy. • TikTok rules: TikTok has the poten- tial to become a powerful market- ing tool, enabling brand awareness and financial literacy for a precious potential customer base. But to re- alise its potential, banks need to understand TikToks rules. If banks are customer-centric they should seize the opportunity of wider au- dience using TikTok. TIKTOK FOR FINANCIAL MARKETING Financial services content marketers constantly evaluate and refine their brand’s presence on social media, in- cluding consideration of opportuni- ties as they emerge. There are three considerations that can help in determining if TikTok can be used in a marketing strategy: • TikTok’s core users: A common perception about TikTok is that its users are primarily Generation Z. Although TikTok’s biggest demo- graphic is 16 to 24 years old, it is not entirely off-limits for adults older than 30 years. It is particu- larly popular among those in their 40s. • Social media trends: The way peo- ple consume social media is changing. There is a shift away from self-promotion and a move toward community building, and marketers must adapt accordingly. In the social media space, TikTok is considered a disruptor changing the concept of community in new and creative ways, including how people respond to and interact with content. For example, TikTok duets promote video collaboration between users, and hashtag chal- lenges inspire users to participate by making and uploading their own videos on a specific theme. • How a bank brand should use Tik- Tok: As with other social media, brands posting and advertising on TikTok should avoid being too in- vasive, especially when targeting Generation Z and Millennial con- sumers. Therefore, banks must get creative in how they may be able to stay true to their brands while building community within the types of connections and collabo- rations already established by indi- viduals on the network. Examples of how banks can market on TikTok include: • Create a brand channel and up- load relevant videos. • Work with influencers to spread content to a broader audience. • Encourage user generated content. • Pay to advertise on TikTok. • Consider TikTok for bank services marketing. TIKTOK FOR BANK DIGITAL ATTRACTION TikTok can have an impact on digital attraction for banks. TikTok has the potential to be a powerful marketing tool. For example, videos posted on the app can gain thousands to mil- lions of views. For banks, TikTok may be ideal for increasing digital attrac- tion. When discussing digital attraction, it is crucial to examine the role of the customer. Building digital interest in products or services requires busi- nesses to understand their audiences. Therefore, learning more about your audience is key to learning how to attract them. Digital attraction has three core com- ponents • Empathy: Showing a customer that there is complete understanding of their problems • Compassion: Demonstrating a high level of care for the customer’s well-being • Ease: Soothing customer worries by pro- viding planned out solutions Three main kinds of digital marketing can be used by banks for digital at- traction: • Content Marketing: Content marketing uses keywords and tags to help find the desired customers. • Email Campaigns: Email campaigns help nurture rela- tionships with customers until they are ready to commit. • Paid Advertising: Paid advertising can gain impres- sions from highly targeted audi- ences and demographics. Typically, a strong bank digital attrac- tion strategy will include a combina- tion of marketing methods. Determining the specific needs of customers is essential. This process helps to both onboard new cus- tomers and retain existing relation- ships. Digital attraction requires paying at- ISSUE 159 MARCH 2022 the BANKING EXECUTIVE 13