role of social media in financial services (takaful)
DESCRIPTION
A presentation of my speech at the International Takaful Summit held in London (July 11-13,2011) at the Jumeirah Carlton Towers. It presents key and pertinent issues that have to do with using social media in the finance services industry.TRANSCRIPT
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UNDERSTANDING NEW MEDIA FOR
TAKAFUL
By Fahmi Mohammed
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WHAT IS NEW MEDIA?
Digitized and Computerized form of communication
Internet, WWW, Online Videos, Games
Mainly based on one-to-many approach (Broadcast Mechanism)
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CONCEPT OF WEB 2.0
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WEB 2.0 – SOCIAL MEDIA
• a group of internet based platforms allowing
creation and exchange of UGC
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THE SOCIAL WEB
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SOCIAL MEDIA IN FINANCE
Rise in Niche Communities
Customer Driven Markets
Transparency
Risk and Regulation
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RISE OF NICHE COMMUNITIES
Increase in Online micro-communities
focusing of specific audience. ML
Communities, Ethical
Financing, Blogosphere
Regionally or Globally Targeted
Bonded by a sense of ‘belongingness’
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SOCIAL NETWORKERS ACCESSIBILITY
Region Muslim
Pop.
Internet
Penetratio
n (%)
Internet
Population
Ave. Social
Media
Penetratio
n (%)
Social
Media
Users
Middle
East
210,000,000 31.7 66,500,000 14.5 30,200,000
Europe 38,000,000 58.3 22,150,000 13.5 2,990,000
Malaysia 17,300,000 64.6 11,200,000 63.1 7,080,000
US 6,000,000* 78.2 4,690,000 46.5 2,180,000
UK 2,800,000 82.5 2,310,000 37.3 862,800
TOTAL 106,850,000 43,312,800Sources:
Internet World Stats
US Census Bureau
Pew Research
Centre
*Dinar Standard
IQPC
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CUSTOMER DRIVEN MARKETS
SM empowered online communities to influence the marketplace
Conversations about brands will continue whether the brands are part of them or not
SM can help glean through valuable
and
actionable insights to customize
offerings
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TRANSPARENCY
1. Customers need to feel secure and know their
money is safe and know exactly where it’s
spent
2. Simple fee structures, understandable
products and know what they signed up for
Transparency Builds Trust.
Trust glues the relationship with the customer
Requires increased level of disclosure, peer
review, transparency
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TRANSPARENCY (CONTD.)
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SM AND RISK AND REGULATION
• Main reason why FSI did not adopt SM quickly
• Strict advertising rules set by regulators (FSA,FINRA…)
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