Social media and the growth and expansion of financial institutions

Abstract

This research examined the relationship between social media and the growth and expansion of financial institutions in Kampala, Uganda. Social media has become an essential tool for communication and information dissemination in the modern era. Financial institutions have recognized the potential of social media to reach out to their customers and expand their customer base. This study employed a quantitative approach using questionnaires submitted to customers and employees of financial institutions to determine the impact of social media on their choice of financial services operating mainly within Kampala District. The study found that social media had significantly contributed to the growth and expansion of financial institutions in Kampala. The study identified various benefits of using social media, including increased customer engagement, improved customer service, and increased brand awareness. The study also revealed that social media had facilitated the introduction of innovation. financial products and services, leading to increased competition among financial institutions. The study concluded that social media was an essential tool for financial institutions in Kampala, and its use had contributed to their growth and expansion. The study recommended that financial institutions should invest in social media and develop robust social media strategies to remain competitive in the market. Additionally, the study suggested that policymakers should support the growth of social media infrastructure to enable more people to access financial services.