An exploratory study on the impact of social media of selected commercial banks in the Eastern Cape Province, South Africa

Abstract

The emergence of social media in financially high-risk institutions has had a negative impact on employees’ perceptions towards utilization of social media for team collaboration and communication. This study investigates social media impact in commercial banks and explores the contribution it has brought among teams, thus, ascertaining collaboration and effective communication within the banking industry. It adopted a quantitative research method whereby 194 questionnaires were distributed and 102 completed, thereby generating a response rate of 53%. The study findings revealed 60% of the research participants who agreed, 14% undecided, and 27% disagreed that social media present an opportunity for people to commit fraud and attracts hackers. This study will contribute to the body of knowledge in South Africa as there is a limited number of published studies on the impact of social media in financial institutions.