The financial services industry has a love-hate relationshipwith social media. It likes how social media enables accountholdersto communicate directly with their financial institutions, butfears startups are using it to threaten traditional financialinstitution relationships.

Almost two-thirds of American adults use social networkingsites, per the Pew Research Center. Plus, there are almost 1.9billion active Facebook users and five billion views on YouTubedaily. Causing worry for financial institutions is an Accenturesurvey that revealed nearly one-third of its respondents wouldswitch to Google, Amazon or Facebook for banking if they could.

However, disintermediation presents a greater threat, accordingto Larry Pruss, SVP for the Memphis, Tenn.-based Strategic ResourceManagement, which helps credit unions maximize bottom-lineperformance.

Pruss explained a credit union's core function is serving as an intermediary forborrowers and lenders. However, social media platforms getcaught in the middle and can hurt revenue streams, brands anddata.

Disintermediators outside of the financial space include Uberand Airbnb, which use technology to connect buyers and sellers.Fintech disruptors include LendingTree, which links borrowers andlenders, and GoFundMe, the world's largest personal fundraisingplatform.

Some nontraditional providers also serve unique verticals andsegments previously underserved by traditional financial serviceproviders, Pruss said, such as “people who are high credit risks,have a low credit score or are wary of traditional bankingmodels.”

So how are credit unions using social media in an age ofdisruption?

John F. Kilduff, corporate affairs officer at the $545 million,Chambersburg, Penn.-based PatriotFederal Credit Union, a client of Fiserv and Raddon, a Fiservcompany, for research and analytics, discussed the importance ofengaging members who are increasingly active on social media. Thisled to Patriot's launch of a social media initiative last fall.

Kilduff asserted, “You can't simply ignore social media and havethe mindset that if we don't have a Facebook page or Twitterchannel that your credit union is not in social media. It is,whether you like it or not. You have to address it, manage it andmake it work for you. “

The credit union uses Social Assurance, a Fiserv partner, forsocial media management as part of an overall marketing strategyencompassing public and community relations, and member service. Italso uses targeted Facebook advertisements and leveragesdemographic information and analytics from Facebook.

Over the past six months, Patriot has seen its Facebookfollowers increase from fewer than 100 to more than 1,000 andTwitter followers jump from 25 to more than 100. “We've beensuccessful in re-directing visitors from social media to our webpage for content-like articles, tools and loan applications, aswell as to other social channels like YouTube to view videos,”Kilduff said.

He added, “One of the nuances of social media that we somewhatunderestimated was the preference for some members to use socialmedia in lieu of calling us on the phone or sending an email.”

As a result, Patriot now views social media as an additionalservice touch point or delivery channel.

Another Fiserv core client, the $1.04 billion, St. Paul,Minn.-based HiwayFederal Credit Union, also engages members through socialmedia.

“Social media is the quickest and most accessible way to engagewith a company, which is why we felt the need and desire to be apart of this space,” Deb Cariveau-Rogers, marketing manager atHiway, said.

For example, a “Hunt for the Gold Puck” promotion engagedmembers, the community and Minnesota Wild fans. The credit unionutilized live video to present weekly clues. Cariveau-Rogers noteda unique aspect of Facebook Live is that it automatically notifiesall followers, while written posts only reach a select group.

Hiway bases its social media plan around a monthly contentcalendar and uses a combination of in-house resources and anoutside agency. It also engages with members and activities outsideof Hiway. For example, last summer when Pokémon Go was prevalent,the credit union located hotspots around its ATMs and branches.

The credit union utilizes Google Analytics, Facebook insightsand Sprout Social, a social analytics platform, to gauge results.Over a year's time, engagements tripled, link clicks doubled andoverall impressions grew by six times.

“A social media presence for credit unions is imperative to asuccessful communication and engagement strategy with your memberbase. Our social media initiatives have shown us that our membersare seeking out ways to engage; all you need to do is open thedoor,” Cariveau-Rogers added.

Credit unions might also consider the potential influence of thesocial web, or what some call Web 2.0, which includes socialnetworking sites and wikis that emphasize fintech partnerships andsharing among users. These services can deliver powerfulinteractive services as well as a variety of consumer touch pointsinvolving texting, speaking, listening and viewing.

A new partnership between the New York Credit Union Associationand Monett, Mo.-based MEA Financial Enterprises, for example, willhelp New York's credit unions secure a two-way texting tool thatenhances member interaction.

MEA's Text Concierge product, which supports long and short-codemessages, allows New York credit union members to requestinformation via text message. Text Concierge also includes FacebookMessenger and chatbot integration, text-enabled direct-dialextensions, a mobile app for credit union staff and a loantransparency tool.

“Texting is unquestionably the preferred method of communicationfor a large number of Americans, and it only makes sense thatcredit unions capitalize on this growing channel,” NYCUAPresident/CEO William J. Mellin said.

The Seattle-based CU Texting, a vendor sourcing consulting firmwith two-way SMS core competency, works with credit unions lookingto bring their landline and/or toll-free number into the textingmedium.

“One of the challenges credit unions are having is bringingtheir brand, messaging and communication to the texting medium. Notjust answering their question [or] providing a solution to thatchallenge, but bringing that into the social media world,” MarkJohnson, CU Texting president and founder, noted.

Another groundbreaking technology is natural languageunderstanding. The Montreal, Quebec, Canada-based North Sidedeveloped VerbalAccess, which enables conversational access tobanking through text or by speaking in plain English, to afinancial institution's APIs.

VerbalAccess goes beyond single commands or questions bysupporting conversations and enabling consumers to clarify theirintent. “You don't click anymore, you don't type anymore, youconverse, you speak normally,” North Side CEO Eugene Josephexplained.

Three credit unions in the United States have validated thetechnology. “It's really important that the language understandingbe robust and tied to everyday life because then you can do more,”Joseph added.

David Lester, managing director and finance lead at BrightworksInteractive Marketing, suggested credit unions need to make surethey engage and become sticky with their members, especiallymillennials, noting, “You really need to add value with differentapps and create a great online digital experience including socialplatforms.”