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Social Media and Financial Services - Canada - October 2015

"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."

Carol Wong-Li, Senior Research Analyst – Lifestyles & Leisure

This report looks at the following areas:

  • Concerns around security remain strong
  • Social media (for financial companies) is not seen as valuable by consumers
  • Consumers lack confidence in social media pages of financial services companies

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Table of contents

  1. 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

                                                                                                                Companies Covered

                                                                                                                To learn more about the companies covered in this report please contact us.

                                                                                                                Social Media and Financial Services - Canada - October 2015

                                                                                                                £3,174.67 (Excl.Tax)