Benchmarking the use of social media by banks in the Gulf region
Facebook’s role in people’s lives is very different from Twitter, LinkedIn, and Instagram, and those differences matter. The companies that are starting to benefit from social media are those that truly understand this
Social media is an integral part of many people’s lives today. It is used to connect, communicate, alert, observe, and increasingly to buy, sell and service.
Every second, 11 people use social media for the first time
Five billion people use social media – more than half the world’s population
People in the MENA region spend a lot of time on social media, averaging 3.5 hours-a-day, across all the platforms.
However, there appears to be a disconnect between usage and how businesses are responding. This is particularly true in financial services, which has been pretty much universally slow at adopting effective, customer-focused strategies, despite follower numbers increasing at a dizzying rate. For example, FAB has over 2 million followers on Facebook; ADIB, 1.6m; and Emirates NBD, 1.1m.
Banks often fall into the trap of using social media as a communications platform for recycling advertising and increasingly ESG messaging, rather than considering what each platform offers by way of formats and audiences.
Facebook’s role in people’s lives is very different from Twitter, LinkedIn, and Instagram, and those differences matter. The companies that are starting to benefit from social media are those that truly understand this.
Five billion people use social media – more than half the world’s population.
To look at the current state of play in the Gulf regions, NMD+ and Whitesight Fintech Research have just completed an in-depth look at the social media effectiveness of 27 banks (following on from a recent global survey).
Banks were ranked using a benchmark tool to measure design, content, relevance, frequency, and most importantly, user engagement across the leading social platforms, Facebook, Twitter, LinkedIn, and Instagram.
The research team was interested in seeing how each of the banks approached the different platforms. The banks analysed were a mix of incumbent banks, neobanks and digital subsidiaries of incumbent banks (a peculiarity of the region).
Some headline findings include:
There are significant disparities in the approach banks are taking, which is reflected in the scores. A few banks are taking social very seriously, but most have a tepid approach.
Incumbent banks score more highly than the neo and digital subsidiaries, which is surprising. Of the top ten banks, only two were non-traditional. LinkedIn is used consistently well, with an average score given across all the banks of 62 percent. Twitter is the least used and perhaps understood, with the lowest average score of 48 percent. Across all platforms, high follower numbers do not automatically translate into engagement.
Emirates NBD has a creative, attention-grabbing approach utilising games, events and socially informative posts linked to their products and services.
In comparison to their global peers, Middle Eastern banks have a greater focus on CSR and ESG initiatives, and overall, they are more active, with almost all the banks posting daily. Many of the banks interact with their audiences through giveaways and competitions.
Of the banks reviewed, the top three were ADIB, Riyad Bank and Emirates NBD. Each of these banks demonstrated a very positive and engaging approach to each of the social media channels.
The ADIB team has taken time to understand what each platform offers and devised a strategy for each. For this, they should be congratulated. Small touches make a difference. For example, the key call to action on the Facebook page is to connect to the bank via WhatsApp. On Instagram, they make effective use of video and carousels.
What is noticeable is that there is different content across each of the platforms. Riyad bank is another excellent example of a company that has platform-appropriate content. Of note is its Twitter presence; they have almost 500,000 followers and are very active, with over 120,000 tweets. Engagement from users is generally high. There is a call to action from the pinned tweet to install its mobile app, which is incredibly action oriented.
Emirates NBD has a creative, attention-grabbing approach utilising games, events and socially informative posts linked to their products and services.
A few banks are taking social very seriously, but most have a tepid approach.
Overall, there is much to be done. Building on the successes of the leading lights in the region and looking at those global players, all banks can start to capitalise on the social opportunity.
Perhaps the best performing bank globally is Nubank. It has built its marketing strategy on social, and the results speak for themselves. It has over 40 million customers and is now one of the world’s most valuable fintechs. Paula Rothman, the head of social for Nubank, gave her advice on achieving success:
Ensure social is seen as a strategic channel championed by its leaders
Do not fear social and treat it as a customer support channel
Obsess over customer insight and ways to connect
Understand the platforms and use them appropriately
Work together across the organisation; success requires breaking down silos!
Dave Wallace, CEO of NMD+
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By Dave Wallace
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Benchmarking the use of social media by banks in the Gulf region
Facebook’s role in people’s lives is very different from Twitter, LinkedIn, and Instagram, and those differences matter. The companies that are starting to benefit from social media are those that truly understand this
Dave Wallace, CEO of NMD+
Social media is an integral part of many people’s lives today. It is used to connect, communicate, alert, observe, and increasingly to buy, sell and service.
However, there appears to be a disconnect between usage and how businesses are responding. This is particularly true in financial services, which has been pretty much universally slow at adopting effective, customer-focused strategies, despite follower numbers increasing at a dizzying rate. For example, FAB has over 2 million followers on Facebook; ADIB, 1.6m; and Emirates NBD, 1.1m.
Banks often fall into the trap of using social media as a communications platform for recycling advertising and increasingly ESG messaging, rather than considering what each platform offers by way of formats and audiences.
Facebook’s role in people’s lives is very different from Twitter, LinkedIn, and Instagram, and those differences matter. The companies that are starting to benefit from social media are those that truly understand this.
To look at the current state of play in the Gulf regions, NMD+ and Whitesight Fintech Research have just completed an in-depth look at the social media effectiveness of 27 banks (following on from a recent global survey).
Banks were ranked using a benchmark tool to measure design, content, relevance, frequency, and most importantly, user engagement across the leading social platforms, Facebook, Twitter, LinkedIn, and Instagram.
The research team was interested in seeing how each of the banks approached the different platforms. The banks analysed were a mix of incumbent banks, neobanks and digital subsidiaries of incumbent banks (a peculiarity of the region).
Some headline findings include:
There are significant disparities in the approach banks are taking, which is reflected in the scores. A few banks are taking social very seriously, but most have a tepid approach.
Incumbent banks score more highly than the neo and digital subsidiaries, which is surprising. Of the top ten banks, only two were non-traditional. LinkedIn is used consistently well, with an average score given across all the banks of 62 percent. Twitter is the least used and perhaps understood, with the lowest average score of 48 percent. Across all platforms, high follower numbers do not automatically translate into engagement.
In comparison to their global peers, Middle Eastern banks have a greater focus on CSR and ESG initiatives, and overall, they are more active, with almost all the banks posting daily. Many of the banks interact with their audiences through giveaways and competitions.
Of the banks reviewed, the top three were ADIB, Riyad Bank and Emirates NBD. Each of these banks demonstrated a very positive and engaging approach to each of the social media channels.
The ADIB team has taken time to understand what each platform offers and devised a strategy for each. For this, they should be congratulated. Small touches make a difference. For example, the key call to action on the Facebook page is to connect to the bank via WhatsApp. On Instagram, they make effective use of video and carousels.
What is noticeable is that there is different content across each of the platforms. Riyad bank is another excellent example of a company that has platform-appropriate content. Of note is its Twitter presence; they have almost 500,000 followers and are very active, with over 120,000 tweets. Engagement from users is generally high. There is a call to action from the pinned tweet to install its mobile app, which is incredibly action oriented.
Emirates NBD has a creative, attention-grabbing approach utilising games, events and socially informative posts linked to their products and services.
Overall, there is much to be done. Building on the successes of the leading lights in the region and looking at those global players, all banks can start to capitalise on the social opportunity.
Perhaps the best performing bank globally is Nubank. It has built its marketing strategy on social, and the results speak for themselves. It has over 40 million customers and is now one of the world’s most valuable fintechs. Paula Rothman, the head of social for Nubank, gave her advice on achieving success:
Dave Wallace, CEO of NMD+
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