Five Ways Consumers Bank On Word Of Mouth

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In the digital age, it is very easy to be weary of online banking and doing any transactions online. It is millennials though, who are first working past this fear and are more reliant on online and mobile banking than other generations before them.

And it turns out, that we actually trust financial advice online.

Also Read: Selfie Obsession: The Rise Of The Social Media Narcissist [Infographic]

Social Media Link, a brand advocacy company ran a survey of 19,000 consumers and found just how much we rely on social media to discuss finances and to get advice. 77% of the survey respondents reported that are banking online and 64% use their mobile devices for banking purposes. The conversations around this theme have increased dramatically on social media in the past few years, and it only makes sense that this should continue as the e-banking industry grows.

So, let’s have a look at the other key takeaways from the survey.

In a recent survey 27% of respondents follow financial brands on social media

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1. They Look For Tips In All The Social Places

27% of respondents follow financial brands on social media and they use social media information for investments or information on savings.

2. They Use Social Media For Investment/Savings Information

46% seek information from their Facebook friends, 17% from those on Twitter, and many (15%) from others on Instagram. Surprisingly enough 13% user Pinterest (I would have imagined this to be much much lower) and finally only 10% use LinkedIn for this purpose! This is again a surprise. I would have thought more people would use LinkedIn.

49% of respondents in a recent survey seek finance information from their friends on Facebook

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3. They Make Financial Decisions Based on Reviews or Recommendations

1 in 5 respondents say they have made a financial decision based on a review or recommendation for financial service – credit card or banking service. 41% of them were influenced by family and/or friends online, 29% by information from bank websites, 19% found their information on social media through friends and followers, and 49% actually recommended financial services to others more than once a year.

1 in 5 have made a financial decision based on a review or recommendation from friends

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4. They Trust Peers More Than Traditional Media

Almost half also feel that reviews from family and friend are more trusted than traditional media. 84% trust family and friends, 62% trust bank websites, 50% trust social media friends and followers, and 49% trust online reviews and recommendation sites. Only 30% trust the media.

5. They Share Regularly About Financial Topics With Online Social Networks

Most also share financial topics with their network. 45% about budgeting, 39% about household finances, 35% about credit cards and debt reduction, and 32% share topics related to investing. Only 28% share topics related to retirement planning.

Have a look at the infographic!