Application of Social Media Analytics in the Banking Sector to Drive Growth and Sustainability: A Proposed Integrated Framework

Abstract

Large amounts of data sets being generated from social media platforms have led to surge in demand for social media analytics (SMA) use in business operations. Strategic operation of SMA yields a positive impact on marketing activities, customer engagement, risk analysis and assessment product or service design, credit rating of customer profile, customer education and competitive analysis. Banks have started tapping into advanced prescriptive and predictive analytics into a bid to develop insights, managing high costs of compliance and non-compliance such as financial risks and reputational risks thereby generating a significant impact in business operations. Optimisation modelling of business portfolios, products and services offerings are contributing significantly towards achieving a sustainable and profitable growth. This is however, against the background of high volatility and weakening demand for traditional products in the banking industry. Systematic literature review was used in examining how banks are applying social media analytics to improve their business operations. Findings reveals that social media analytics provide concrete solutions which helps to improve revenue streams of banks, providing a guarantee for compliance, survival, sustainability and growth objectives. As a result, a integrated framework is proposed to address the gap existing in literature which lacks a focus on an integrated framework that can assist decision makers on the social media analytics to employ in the banking operations.