Impact of Social Media on Banking Employees

The assignment discusses the impact of social media on banking employees, highlighting both positive and negative effects. It explores how social media can be used as a promotional tool for banks, but also notes that client-facing employees face restrictions on using social media during working hours. The document concludes by emphasizing the importance of social media in business strategies and suggests further research on its effects on banking employees.

Running head: IMPACT OF SOCIAL MEDIA ON BANKING EMPLOYEES
Impact of Social Media on Banking Employees
Name of the Student
Name of the University
Author Note

1IMPACT OF SOCIAL MEDIA ON BANKING EMPLOYEES
Table of Contents
Introduction................................................................................................................................2
The impact of social media on banking sectors and employees............................................2
Literary evidence on the effect of social media on banking sectors and employees.............3
Gap in the literature................................................................................................................4
Conclusion..................................................................................................................................5
Reference....................................................................................................................................6

2IMPACT OF SOCIAL MEDIA ON BANKING EMPLOYEES
Introduction
Since its time of inception, social media had influenced upon the world so much that
the online service meant for creating a connection between people is now being utilized to
mend organizational structures. The dramatic change of technology has affected the social
media platforms as well (Ashley &Tuten, 2015). The following literature review would
include the ideals of different authors in published journals and books about the impact of
social media in banking organizations and the employees there. This would have an overview
of social media and its implementation in banking sectors. Finally, it would present a clear
idea of how the social media influences the occupation and behaviour of the banking sector
employees.
The impact of social media on banking sectors and employees
As per Bharati, Zhang & Chaudhury (2015), social media is the software platform,
which does not rely on just one user or programmer to access but includes the involvement of
multiple users to contribute to the same platform continuously and collaboratively. These
activities of contribution include sharing links, text and multimedia files to a third party
internet application to interact with each other. Social media is regarded as a Web 2.0
application development that supports user-driven interaction via web. The idea of social
media was to adapt to a technology that enables people to have a one-on-one and group
interaction for sharing ideas, multimedia and more over a website enabled medium. In the
contemporary world, there are numerous social media platforms that people have made an
integral part of their lives. These include, Instagram, Facebook, Twitter, LinkedIn, Digg and
many more (Kane, 2015). Involvement of the general mass has become exponentially
increased in the social media websites and applications in due course of time such that life
without social media is unthinkable now.

3IMPACT OF SOCIAL MEDIA ON BANKING EMPLOYEES
We know that expansion of social media has not confined itself into affecting the lives
of general mass but also to the organizations. Since, the social media platforms have a huge
amount of consumers present online; it is easier for the business organizations to present their
business ideals to the possible customer base in real-time and receive feedback for it as well.
It enhances the chances of an organization to build its own influential market presence.
Therefore, it is required that an organization include strategic use of social media in
enhancing the business being in the customer’s view. It promotes the business, saves the
promotional costs and even helps an organization in overcoming their economic challenges.
However, in Malaysia itself, it has been found that organizations have started implemented
the usage of social networking platforms for corporate communications and promotional
activities. Since, 47 percent of the total Malaysian population uses these platforms, the
Malaysian organizations are being able to reach out to the cream of the society benefitting
their business including the banking sectors (Kane, 2015).
Literary evidence on the effect of social media on banking sectors and employees
According to Schivinski and Dabrowski (2016), social media enhances the
opportunities of engaging the customer base to the organizational structure in newer ways. It
increases the chances of customers being more intrigued in the brand and the organization.
Due to its ability consumer engagement in a timely and directly at relatively low costs, social
media is relevant for organizations of all sizes, be it small, medium and large (Felix,
Rauschnabel & Hinsch, 2017). It was found to have significant positive impact on
perceptions and attitudes of a consumer toward ecommerce websites.
According to the findings, it has been perceived that with the advancement of
technology, social media has expanded its availability from immobile devices to mobile ones.
It can be easily accessible from any device having connectivity to the internet. As a business

4IMPACT OF SOCIAL MEDIA ON BANKING EMPLOYEES
strategy, the usage of social media amongst employees has its positives and its negatives
amongst the employees working in the banking sectors (Malhotra, 2017). Engaging
employees for posting and sharing content related to the bank’s marketing strategies and
promotions indeed make a good impact on accelerating the market base. However, studies
have found that the employees facing the clients, such as loan officers, personal bankers and
financial advisors, are forbidden to use social media when it is utilized for business purposes.
Although, some are of the opinion that employees can post. Although, it is unclear about the
rules for them to post without any proper training done (Dijkmans, Kerkhof & Beukeboom,
2015). It forms a bigger proscription on the employees facing the clients who posted business
purpose contents on their social media accounts accessed personally.
Gap in the literature
The literary evidences have successfully covered the overall impact of social media
on the organization and its employees. It reveals that the usage of social media comes with a
positive and a negative impact. The total number of organizations in Malaysia that is adapting
to the latest technology of utilizing social media to its benefit for promoting the business
however fails to focus on the accumulated impact it has on the banking sectors. There are
evidences of the rules and regulations about the usage of social media in banking sectors and
their employees but there is little or no information about the effect of such usage regulations.
In addition, all the evidences are based mostly on the professional perspective rather than the
effect of social media on banking employees if they use it for personal purposes during the
duty hours.
Therefore, it needs to be researched upon about the effects social media embarks
ahead the employees in banking sectors both by quantitative and qualitative method if the
usage occurs during the duty hours but for entirely personal purposes. It is a known fact that

5IMPACT OF SOCIAL MEDIA ON BANKING EMPLOYEES
using personal accounts of social media during working hours is prohibited in most
organizations, however, people find out ways due to the addictive nature of this technology.
What drives the urge in the employees to break the prohibitions can also be a point of
research further.
Conclusion
Therefore, it can be concluded from the above report that a marketing program can be
based on social media for all the organizations including the banking sectors, however, the
use of social media on accordance to the employees working hours is a questionable issue. If
used as a promotional tool, the effects of social media usage amongst banking employees can
be beneficial to the organization, but client-facing employees face many prohibition and
obligations whilst the usage of social media during working hours is in question. The social
media has influenced the world in a big way and continuing to do so with the advancement of
time and technology. Therefore, it is the best low cost timesaving promotional tool that the
organizations can implement in their business strategies.

6IMPACT OF SOCIAL MEDIA ON BANKING EMPLOYEES
Reference
Ashley, C., &Tuten, T. (2015). Creative strategies in social media marketing: An exploratory
study of branded social content and consumer engagement. Psychology &
Marketing, 32(1), 15-27.
Banks, M., &Zeitlyn, D. (2015). Visual methods in social research. Sage.
Bharati, P., Zhang, W., &Chaudhury, A. (2015). Better knowledge with social media?
Exploring the roles of social capital and organizational knowledge
management. Journal of Knowledge Management, 19(3), 456-475.
Dijkmans, C., Kerkhof, P., &Beukeboom, C. J. (2015). A stage to engage: Social media use
and corporate reputation. Tourism Management, 47, 58-67.
Felix, R., Rauschnabel, P. A., &Hinsch, C. (2017). Elements of strategic social media
marketing: A holistic framework. Journal of Business Research, 70, 118-126.
Kane, G. C. (2015). Enterprise social media: Current capabilities and future possibilities. MIS
Quarterly Executive, 14(1).
Malhotra, P. (2017). Impact of Social Networking Sites on Financial Performance: A Case
Study of Indian Banks.
Schivinski, B., &Dabrowski, D. (2016). The effect of social media communication on
consumer perceptions of brands. Journal of Marketing Communications, 22(2), 189-
214.