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Social Media and Financial Services - Canada - October 2015

Published By :

Mintel

Published Date : Oct 2015

Category :

Banking

No. of Pages : N/A

Social media is a regularly used platform with 65% of the population visiting these pages daily. Despite active engagement across most categories via this medium, privacy concerns continue to hinder interactions with the financial industry.

Table of Content

Overview

What you need to know

Executive Summary

The issues
Concerns around security remain strong
Figure 1: Attitudes towards social media and financial services, selected statements, July 2015
Social media (for financial companies) is not seen as valuable by consumers
Figure 2: Attitudes towards social media and financial services, selected statements, July 2015
Consumers lack confidence in social media pages of financial services companies
Figure 3: Attitudes towards social media and financial services, selected statements, July 2015
The opportunities
Fathers and parents of teens are already paying attention
Figure 4: Interest in social media interactions with financial services companies, selected interactions, parents with children aged 12-17 at home vs overall, July 2015
Opportunities exist for Asian Canadians
Figure 5: Interest in social media interactions with financial services companies, selected interactions, Chinese Canadians vs overall, July 2015
Incentives will help adoption among Millennials women
Figure 6: Interest in “gain access to special offers or discounts exclusive to me”, by age and gender, July 2015
What it means

The Market – What You Need to Know

Increasing diversity bodes well for platform adoption as a touchpoint
The growth of the 35-44-year-old population is also a boon
Wavering consumer confidence may impact openness to direct interactions with financial companies on social media

The Market – Market Factors

The population is growing and ethnically diverse
Figure 7: Share of population of Canada, by territory/province, 2014
A growing 35-44-year-old population bodes well for adoption
Figure 8: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
Recent economic activities have negatively impacted consumer confidence
Figure 9: Consumer Confidence Index, monthly, January 2008-January 2015

Key Players – What You Need to Know

Technological advances will increase consumer comfort
Connecting with consumers on social media should also grow engagement

Key Players – What’s New?

Buy buttons on social media
Facebook
Pinterest
Instagram
Money transfer through social media
Snapchat
Ribbon
Mobile payment innovations
Apple Pay
Samsung Pay
Mobile wallets from the banks
CIBC Mobile Wallet
RBC Wallet

Key Players – Marketing Strategies

Acknowledgement of current customers
BMO – HelpGiven “Arash’s Day Off”
Figure 10:  HelpGiven Arash’s Day Off, August 2015
TD Canada Trust – #TDThanksYou
Incentivizing consumers to gain engagement
Scotiabank – #My1500
Figure 11: #My1500 Marriage proposal, August 2015
RBC – #HappySending
Figure 12: Tales of #HappySending – Princess and the Pea, August 2015

The Consumer – What You Need to Know

Canadians are active on social media platforms
Engagement with financial category is soft on social media as security remains a concern
Traditional touchpoints are seen as more effective
There is hope for social media as a touchpoint

The Consumer – Social Media Engagement

Social networking sites are among the most popular internet webpages/apps used
Figure 13: Social network usage, July 2015
Figure 14: Website usage, selected websites, by visitation frequency, July 2015
Facebook drives much of daily social media usage
Figure 15: Social media website usage, selected websites, by visitation frequency, July 2015
Younger networkers and fathers have a wider repertoire
Figure 16: Repertoire of social media website usage, July 2015

The Consumer – Category Interactions on Social Media

Financial category involvement is soft on social media
Figure 17: Category interaction on social media, July 2015
Opportunities exist with parents of teens
Figure 18: Financial category interaction on social media, by parental status, July 2015

The Consumer – Comfort Interacting with Financial Services Companies on Social Media

Canadians may need some convincing
Figure 19: Comfort interacting with financial services companies on social media, July 2015
Comfort is higher with distinct segments
Nearly half of fathers are comfortable
Chinese Canadians are more comfortable with social media interactions
Daily LinkedIn users are already there
The disconnect – Banking is private while social media is public

The Consumer – Privacy and Trust in Social Media Pages of Financial Services Companies

Financial services companies continue to face hurdles in this realm
Privacy concerns are a deterrent
Figure 20: Attitudes towards social media and financial services, selected statements, July 2015
Only a quarter of networkers feel social media pages of financial services companies are trustworthy
Figure 21: Attitudes towards social media and financial services, selected statements, July 2015
Baby steps will be needed to build trust and confidence

The Consumer – Traditional Touchpoints vs Social Media for Financial Services

Satisfaction is high with more established touchpoints
Figure 22: Satisfaction with financial services channels (any satisfied), July 2015
Traditional touchpoints are seen as more effective
Figure 23: Attitudes towards social media and financial services, selected statements, July 2015
Touchpoints used – A qualitative look

The Consumer – Interest in Social Media Interactions with Financial Services Companies

There is hope for social media as a touchpoint
Figure 24: Interest in social media interactions with financial services companies, July 2015
Parents of teens are interested in learning about financial products
Figure 25: Interest in social media interactions with financial services companies, selected interactions, parents with children aged 12-17 at home vs overall, July 2015
Staying up to date matters to Chinese Canadians
Figure 26: Interest in social media interactions with financial services companies, selected interactions, Chinese Canadians vs overall, July 2015
Community platforms dedicated to financial questions should help the medium gain traction
Canadian networkers may rethink interaction if the price is right
Millennial women are interested in special offers or discounts
Figure 27: Interest in “gain access to special offers or discounts exclusive to me”, by age and gender, July 2015
Millennials, middle-aged men and Asians are willing to share posts or more info about themselves for incentives
Figure 28: Attitudes towards social media and financial services (any agree), by selected demographics, July 2015

Appendix – Data Sources and Abbreviations

Data sources
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations

List of Table

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