Lee_Conference Paper

Abstract:

Online video conferencing (VC) platforms have fundamentally changed how financial institutions in Malaysia conduct investment workshops to build rapport and boost clients’ stock trading activities. It imparted them with multiple digital tactics and business strategies to survive and remain relevant with the local investment community during the unprecedented pandemic. Online VC-based webinars provided an efficient way of utilising an organisation’s resources to maintain client relationships remotely, facilitated collaboration with internal and external speakers, built community engagement, provided educational content, and deplored effective digital marketing activities, which boosted Malaysia’s overall stock trading value in 2020. Bursa Malaysia, the central stock exchange, according to its broker report, the total trade value for 2020 was RM2.14 trillion, demonstrating an increase of 103% (RM1.09 trillion) as compared to 2019’s RM1.05 trillion figure. With covid restrictions being uplifted, this digital service remains an important part of society’s lives as clients have grown accustomed to online VC’s convenience and reliability. Therefore, investment webinars cannot be discontinued post-pandemic, or the repercussion will prove too costly for the organization.

 

Conference paper:

The Coronavirus (COVID-19) pandemic spanning across most of 2020 and 2021 has brought substantial lasting changes in society’s everyday life from grocery shopping, daily commute to work, school attendance, and hanging out with friends to be done online. Local governments have mandated social distancing to reduce physical interaction and minimize the spread of the contagious virus, resulting in behavioural changes in people (Cavus & Sekyere-Asiedu, 2021). Routine business activities carried out in the transportation, entertainment, retail, hospitality, trade, and banking sectors were majorly disrupted (Suneson, 2020). They were unfortunately not spared by the ripple effects resulting from the pandemic as more people started staying at home, with foot traffic reduced to mere non-existence. Society turned to digital devices to complete tasks such as online shopping, streaming movies, and obtaining educational content. Companies were left to rethink and innovate their existing business frameworks to ensure survival during the pandemic or risk being shut down permanently due to the burden of ongoing fixed costs such as rent, staff wages, and utilities (Sheikh et al., 2021).  

 

In the education sector, means of distance learning were implemented using interventions that substitute the traditional form of teaching such as the utilisation of radio and television broadcasting programs, e-learning platforms, social media, and online video conference platforms (Cavus & Sekyere-Asiedu, 2021). Prior to the onset of the pandemic, video conferencing was the closest form of live in-person communication; this digital platform has practically become the default mode of remote professional communication (Chang et al., 2022). In Malaysia, financial institutions, an essential sector in the smooth running of the country’s economy, started incorporating online video conferencing to interact with clients (@bursamalaysia, 2020). This ensures investors’ confidence that stock trading activities are carried on as usual with minimal disruptions to prevent the escalation of a potential financial collapse such as the 2008 global financial crisis (Grant & Wilson, 2012). Online video conferencing (VC) platforms have fundamentally changed how financial institutions in Malaysia conduct investment workshops to build rapport and boost clients’ stock trading activities. This digital service, therefore, cannot be discontinued, or the repercussion will prove too costly for the organization.

 

The definition of a traditional community is a close-knit group of people who share similar interests, beliefs, cultures, values, or tasks living near one another. This makes building a “thick” relationship possible while living in proximity, allowing one the ability to form a meaningful and deep relationship through regular in-person encounters (Dotson, 2017). However, this type of closed community glorifies conformity, discourages individual freedom, and limits exposure to external information, thus creating “echo chambers” which contributed to social isolation and knowledge inequality (Sunstein, 2018). With the arrival of computers, smart devices, and web applications, people form networked communities with members located worldwide, sharing information, resources, and support. Creating new relationships and reconnecting with lost relationships become effortless with the mobility these digital communication technologies provide (Delanty, 2018). Although diversity and inclusivity exist in the networked relationships formed online, it is often viewed as ephemeral, fragmented, or “thin” due to their loosely knit, non-committal propensity (Hampton & Wellman, 2018). This article focuses on the thriving online investment community in Malaysia.

 

Social media is a web-based service and a commerce-oriented technological innovation that enables supportive, networked, persistent, and pervasive community relationships (Hampton & Wellman, 2018). What makes it remarkable is surprisingly not the technology but rather the socio-technical dynamics that unfolded as millions of users embraced the technology to share multimedia information, collaborate and interact (Ellison & Boyd, 2013). Therefore, online VC platforms fall under the genre of social media as it allows the display of identity information, lower communication barriers, and facilitate like-minded participants to form communities that ultimately help its users foster socially relevant interactions (Ellison & Boyd, 2013). Social media applications also evolve far more rapidly when compared to previous technologies, such as the telephone or television, with existing features being constantly upgraded and new features being added to promote user engagement and enhance their overall experience (Brügger & Milligan, 2019).  

 

The primary online VC platforms Malaysia’s financial institutions widely utilized are Webex by Cisco and Zoom. This is because users can easily connect and interact with other users through video, audio, chatting, calling, screen sharing, and polling on these web communications platforms. To access and participate in online video conferencing, users’ electronic devices such as smartphones, tablets, and desktops must contain both a microphone and a camera (Chang et al., 2022). Catering to different users’ needs, Webex and Zoom offer a variety of meeting packages with annual subscription prices ranging from $0 for the basic plan to $347 business plan (Zoom, n.d.a). However, business enterprise package plans are negotiated and arranged privately between the company’s marketing personnel and the digital provider’s sales representative (Webex, n.d.a). Once the company’s management makes the necessary payment, it can include online meeting events in its services to clients for marketing and sales purposes. These interactive web events can host up to 100,000 participants (Webex, n.d.b & Zoom, n.d.b).  

 

To create awareness in stock trading and increase investors’ participation in the local stock market, Malaysia’s investment banks conduct regular roadshows and workshops to onboard new clients (RHB Group, 2023). These marketing events were mostly held at exhibition halls, hotels, and event spaces with capacity limitations, consumed valuable time and company resources to organize (Hampton & Ling, 2013). Being a financial service provider, conducting these face-to-face networking activities is crucial for building and sustaining client relationships. However, when physical events were halted with the pandemic, digital webinars held through VC platforms became the new norm to ensure persistent contact with clients (Hampton, 2016). Webinars which are sometimes even held on a weekend when most clients are available and are more likely to attend, have inadvertently caused staff members to provide sacrificial labour in fulfilling the organisation’s demand to meet their clients’ needs (Gregg, 2011). While clients enjoy the luxury of attending these online webinars in the comfort of their own homes propel participation rate and demonstrate VC’s convenience and flexibility, it has its drawbacks regarding staff’s well-being (Cavus & Sekyere-Asiedu, 2021).

 

Besides that, while having internal speakers such as the investment bank’s Head of Research talk about the current market outlook and stock investing strategies, having licensed and experienced external industry speakers provide another objective perspective (Securities Commission Malaysia, 2022). This adds network diversity and depth of coverage on the webinar topic presented for clients’ consideration (Hampton & Wellman, 2018). Inviting listed companies’ management teams to engage with participants regarding their business, financial results, and growth plans further creates awareness and exposure for the company’s stock. Logistics is not an issue even if these speakers are based in a different state as the webinar host can remotely grant “presenter” access to the invited speaker, allowing them control over the webinar’s displayed content (Webex, n.d.b). Therefore, VC platforms enable online collaboration as well as provide visibility, recognition, and credibility for the speakers and moderators with the networked public (Boyd, 2010). 

 

Additionally, the chat, message, and reaction features on the VC platforms increase client interactions with the speaker, host, and participants. Users have the choice to type in their queries and reply privately to the host or publicly to the audience. As the displayed username is anonymous, participants who usually feel hesitant about asking an investment question in person can now do so online without worry (Van Der Nagel & Frith, 2015). Throughout the session, the host can compile and filter the questions asked, most voted on, and provide the final curated list to the speaker for a productive online discussion (Good, 2016). The speaker can also gauge the audience’s interest when they send animated reactions through emojis such as thumbs up, clapped hands, and laughter (Webex, 2023a). This makes the webinar fun and entertaining (Lebduska, 2014). Questions that went unanswered due to time constraints can be followed up easily by means of emailing or contacting the participant, allowing companies to further provide value to their clients.       

 

The current stock trading market relies heavily on gaining access to the internet and a digital device to place a buy or sell trade order. One can purchase a stake in a listed company’s stock and be a shareholder to collect dividends or earn capital gains if the stock price appreciates by selling (Behrendt & Schmidt, 2021). A centralized stock exchange is required for investors to perform these financial trades. In Malaysia, investment banks provide their organization’s stock trading platforms as a service for everyday investors to trade while earning a commission from those transactions (Lim, 2022).

 

In contrast to the past, stock trading activities were mostly done offline by clients calling a licensed stock dealer or remisier to place their orders. Offline trade orders were more expensive when compared to online orders due to the additional service rendered. This has led to the increased popularity of online stock trading, whereby one can easily trade anytime and anywhere equipped with just their personal devices (CGSCIMB, n.d.). Bursa Malaysia, the central stock exchange, according to its broker report, the total trade value for 2020 was RM2.14 trillion, demonstrating an increase of 103% (RM1.09 trillion) as compared to 2019’s RM1.05 trillion figure. This has further exemplified the importance of digital platforms during the pandemic (Bursa Malaysia, 2021).

 

Malaysia’s financial institutions recognise that stock trading can be risky for novice investors, with the potential of losing their invested funds by purchasing the wrong stock, resulting in discouragement in stock trading. Conducting education webinars such as portal training for clients to familiarise themselves with the trading platform; fundamental analysis to understand a company’s financial performance; technical charting for timing the entry and exit of a stock trade; and portfolio management are corporate social strategies to assist clients in making informed decisions and improve their financial literacy (Sun et al., 2020). During these webinars, speakers can share their slides and screen on the online VC platform to productively engage and capture the networked audience’s learning interest (Cavus & Sekyere-Asiedu, 2021). Webinars are also being recorded for participants to rewatch and stream, allowing wider knowledge distribution within the investment community (Papacharissi, 2010). At the same time, casually mentioning any ongoing promotional campaigns by the company during these e-learning sessions ultimately benefits the investment bank through new account acquisitions, increased client trading activities, and higher yield in brokerage fees (Abidin, 2021).

      

Moreover, under the VC enterprise subscription package, an organization can easily create an online event and post the webinar details on their socials, such as Facebook, Instagram, WhatsApp, and the company’s website, to create wider networked awareness (Boyd, 2010). As the webinar date approaches, they can send reminder emails to registrants and provide the webinar’s unique link, meeting number, and password through the platform. Post-webinar, they can further analyse client data from the participant report by calculating the number of registrants versus the actual attendees to determine which webinars garnered the most interest within the investment community (Webex, 2022). Participants’ details, such as their emails, can be sent to the internal data analytics team to segregate existing and new clients. The availability of such information allows the marketing team to send notifications of certain promotional campaigns tailored to onboard new clients (Hampton, 2016). The marketing team can also email webinar invite links to inactive clients who have stopped trading for the past few months in an effort to reconnect and rebuild lost relationships as a multi-pronged business strategy (Sharma & Aggarwal, 2022).

 

On the other hand, while online VC platforms provide many benefits, speakers and hosts experience presence bleed when conducting the webinar from their homes instead of the office during the pandemic. Their sacred private space has become their workplace, blurring the boundaries between their personal and professional lives (Gregg, 2011). Before VC platforms provided virtual backgrounds and blurred effect options (Webex, 2023b), participants could see the speaker’s current surroundings, such as if spouses, children, and pets accidentally appeared in the background. By feeling embarrassed, the speaker experienced emotional labour when these incidents occurred live and were also being surveilled by the networked audience (Gregg, 2011). Therefore, the disadvantage of communication technologies includes the pervasive awareness it creates about users’ interests, relationships, locations, and activities (Hampton, 2016).     

 

Furthermore, there is no human touch element in online VC platforms, whereby some clients may feel isolated within the “thin” virtual investment community (Delanty, 2018). Even with social media’s instant and absolute communication capabilities, studies have shown that society is more disconnected and lonelier than ever due to its ambient nature (Marche, 2012). Clients paying for “thick” services provided by investment banks, experiencing tangible things such as enjoying refreshments, networking with other traders, and meeting their stock advisor at physical venues bring more satisfaction and promote loyalty (Delanty, 2018). Although it is costly to have in-person workshops all over Malaysia, as there are thirteen states and three federal territories (Ministry of Foreign Affairs, 2023), it is possible to record and stream the webinar live for online participants to increase the investment bank’s outreach activities. Henceforth, it depends on how an organization harnesses communication technology’s network affordances to maintain existing social relations and create new meaningful connections (Hampton & Wellman, 2018).

 

In conclusion, online VC-based webinars imparted Malaysia’s investment banks with multiple digital tactics and business strategies to survive and remain relevant during the unprecedented pandemic. It provided an efficient way of utilising its organisation’s resources and is worth the annual subscription fee. They maintained client relationships remotely, facilitated collaboration with internal and external speakers, built community engagement, provided educational content, and deplored digital marketing activities, which boosted Malaysia’s stock trading value in 2020. While VC has the disadvantages of invading users’ private lives and creating thin communities, its mobility and participatory culture affordances cannot be diminished (Ellison & Boyd, 2013). With covid restrictions being uplifted, this digital service remains an important part of society’s lives (Chang et al., 2022), and clients have grown accustomed to online VC’s effectiveness and reliability. As such, financial institutions find it in their best interest to continue hosting webinars alongside their physical workshops to meet clients’ stock trading needs and prevent clients from turning to their competitors.

 

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