The influence of blockchain on social media marketing in South African banking institutions

Abstract

Financial institutions operate in a very competitive environment to better serve and retain their clients. As a result, financial institutions are increasingly embracing innovative ways including the use of technologies, to improve the services that they deliver to clients. Thus, many financial institutions such as banks employ social media for marketing their products and services. Some banks explore the possibilities of adopting blockchain for marketing. At the time of this study, no bank has adopted a complementary use of social media and blockchain in South Africa. This is the motivation of this study. This study aimed to develop a model that can be used to guide the complementary use of social media and blockchain for marketing in South African banks. In doing so, the factors that influence the tools were examined. Qualitative methods were employed. The case study approach was applied. Two South African banks were selected using a set of criteria. Participants were selected from the banks used as cases in the study. Also, a set of criteria were used to select the participants. Data were collected from the participants using the semi-structured interview technique, which stopped at the point of saturation because there was no new information that was forthcoming. The University’s (CPUT) research ethics were adhered to. For example, neither the organisations nor the participants’ identities are disclosed in the study. The data were analysed using the interpretive approach guided by activity theory (AT) as a lens. Based on the analysis, the factors influencing the use of social media and blockchain for marketing purposes by the banks were revealed. The factors were interpreted. Based on the interpretation a model was developed, which can be used to guide the complementary use of social media and blockchain for marketing by banks. The study is original. At the time of the study, no work seems to have been conducted on how social media and blockchain can be complementarily used for marketing in South Africa, or elsewhere in the world. In the end, the study is evaluated, and recommendations are presented, which are intended to assist managers in the banking business and academics. The study has immense contributions from theoretical, practical, and methodological standpoints, which both business and academics can benefit from. Although the study is comprehensive and the aim and objectives are achieved, areas of further study are suggested.