Can digital wallets be self-sustainable and can they be profitable in the long term?
#SocialMedia #FinancialServices #Money #OutlookMoney #OutlookMagazine #OutlookGroup
#SocialMedia #FinancialServices #Money #OutlookMoney #OutlookMagazine #OutlookGroup
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00:00 Today we have wallets and we have technologies and yet at the same time we are trying to
00:10 see penetration in terms of ATMs, right. One is trying to cannibalize the other in terms
00:16 of business model. So when you look at this aspect, do you think there is a long term
00:21 sustainability in terms of profitability for business models on social media platforms
00:26 or is it just going to be an interim stage where there would be you know banks or financial
00:32 institutions using social media and then throwing it away, going to another platform, optimizing
00:37 it and giving it. So I think the first question that you asked
00:42 about you know so much content heavy, is it really helping you save cost and this is connected
00:46 to that entire piece. Do we really save cost today as an organization on going on social
00:52 media and prospecting for a client or trying to do deeper engagement with your existing
00:55 customer? At an upfront level I would say no. Is it an increased cost? Answer is yes.
01:00 You know it is an increased cost, it is an incremental cost. It is a newer channel so
01:04 you have to you know continuously build content, you have to put people to monitor content,
01:07 you have to put people to engage with customers because I cannot do away with my call center
01:11 by launching a service on a social media. So both of them have to independently stay
01:16 and work till the time you know you have people on both the sides and there are going to be
01:20 the same individual who might come and you know do something on Twitter and will also
01:24 call up my call center. It is not that people are also demarcated and gone across various
01:28 platforms. So it is an incremental reach, it is an incremental cost, it is an incremental
01:33 way to engage with clients. What we believe should help us in the long run is that because
01:37 you know the client is now engaging to us in through so many mediums and you know social
01:42 media is one where I can do a two way interaction much more effectively in a much more cost
01:46 efficient manner. So if a person you know moves from let us say a more cost, higher
01:52 cost channel like you know walking into a branch to a tech oriented channel like you
01:56 know an app or a social media, my cost of servicing that particular service will be
02:01 lower. So my demand on this should come down over a period of time and that is the real
02:06 business model on why you know companies are engaging and trying to build.
02:09 Engagement on content, I think content is the king on social media and you know a lot
02:13 of engagement stuff goes on there. So in terms of finance, I think financial education has
02:18 been the most prominent front that all the organizations have been using on social media.
02:23 So trying to educate the customer because you know like the fellow members here mentioned
02:27 that you know it is not so easy to give advice on a customized platform but you can educate
02:31 the client. You can educate the client on what are the things that you need to look
02:34 at, what are these products about, what are these goals, what should be your consideration.
02:39 So all this stuff, education you can do a lot of stuff on social media and that is where
02:42 you know you see engagement building, your branding also goes up you know because it
02:47 is knowledge that you are reaching the client through.
02:49 And so I think it is a marketing activity, it is an expense side of the book and you
02:55 do believe that because the cost of transaction will be lower it will eventually you know
02:58 feed back into a lower cost in the long run.
03:00 I concur with him, you know basically when you start investing in a new channel obviously
03:05 it is going to be an additional expense right. But over a period of time you know as you
03:09 the load goes down on the other channels and this becomes predominantly bigger channel
03:13 where you are acquiring customers and selling your products right. So the cost will get
03:17 rationalized over a period of time. And like I said you know the presence of social media
03:22 is so huge, the number of consumers are so high, it is here to stay you know, there is
03:27 no way that any other organizations can ignore it.
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03:36 [Music]