Social Media is the Future of All Consumer Decisioning
Today, social media is an absolute extension of “self.” But with the coming of functional AI, the future of social media is truly these living breathing reflective cohorts demonstrating, communicating and identifying the deepest reaches of the individual. That is: social media as a “Personality Avatar.” We are coming to the edge of social media coming to life for each individual, perhaps literally, but definitely figuratively.
Yet, with the emergence of blockchain, social “networks” may not even be necessary anymore. We are on the verge of a consumer uploading “themselves” to the web in the most transparent way in the history of mankind.
And THIS is where the consumer is telling their story; THIS is where the consumer is telling the world who they are. THIS is where all predictive decisioning will take place.
With high consumer sensitivity to in-depth registration and applications, banks and lenders have responded with shorter applications, fewer questions, less information, and riskier decisions. It doesn’t have to be that way. 77% of users believe social login is a good registration solution, 95% of the 18-34 demographic not only expects a seamless web experience, they know full well it’s available and are irritated if online or mobile don’t offer that. So why do banks and lenders still think “Like Us On Facebook” is a strategy?
And current traditional and alternative systems just don’t work for 56% of the US population who is thin-file, no-file or credit challenged. And 66% of millennials aren’t building a “history” to assess. “Transactional” insights are great for understanding affinity patterns, but not risk. And a “relational” perspective or the “you are who your friends” approach gives a shallow result. So why do banks and lenders still ask the same old questions, try to collect uncollectable staid data, and mis-assess over half of US consumers?
Because they still think social media is about technology, not psychology.
Why does it matter? Because Millennials and Gen Z’ers are almost completely unengaged in traditional decision tools. The old models just don’t work for them. And if banks and lenders want to stay in business, they need to change. Fast.
Join us at the credit union industry’s foremost lending conference and discover more from Jeff on how social media biometrics is dramatically changing how we view, and use, predictive decisioning to better serve members.