SOCIAL MEDIA USAGE IN BANKING INDUSTRY AND ITS MANAGERIAL VIEW: CASE STUDY FOR MEXICAN BANKING SYSTEM

Being a basic platform of worldwide electronic business, the Internet has emerged as the world’s major distribution channel for goods and services, the easiest and cheapest way for communication and interaction. These changes, which have influenced more or less all business areas by making them to be drastically transformed, require new challenges, communication approaches and creative behavior in the “dot com upheaval”. It has affected banking industry and made them to deal with radically new challenges. It has offered lots of opportunities for businesses that can be seen even in the short period. And here managers need to create and establish new ways and methods to transform and adjust their organizations to the new changes, to communicate and interact to customers, which best can be done via Social Media. Social media has become a part of human life. It has entered consumers' day to day lives. It has tremendous impact on today’s world especially in business world. The rapid progresses in technology seem to have more impact on changes in the banking industry than any other. This article is focused on social media usage in banking industry. We define social media as a manifestation, development and transformation of human’s most impressive characters: communication and interaction, which nowadays are done throughout the new channels. The right communication is linked with customer satisfaction, which itself is linked with customers loyalty and retention. Thereby, in our opinion social media is a new challenge in banking industry the ignorance of what can cost banks customers’ loss. In fact, today banking industry is extensively debating, discussing and thinking on Social Media usage in financial world. Banks have begun to catch that social media is a new challenge for them and it can become a crucial constituent of banking strategy. Social media in banking industry is a discussion topic of this article which than comes up with its current usage in Mexican banks and its managerial view.