Unpacking the Effect of Social Media Infodemic on Consumers’ Panic Banking Behaviour during the Covid-19 Pandemic. Evidence from the Banking Sector in Oman

Abstract

During the Covid-19 pandemic, some government restrictions to curb the spread of corona virus rendered print media obsolete. Social media became a convenient channel of communication. However, social media was awash with false and alarming information about the pandemic and government initiatives. This led to infodemic as consumers accessed misrepresented information on social media. As a result of social media infodemic, some consumers engaged in panic banking through withdrawal rush due to uncertain future expectation. This study aimed to examine the effect of social media infodemic during the Covid-19 pandemic on consumers’ panic intention behaviour in the banking industry. Data for the study was collected from 230 consumers of the baking industry in Oman using a questionnaire. A social media infodemic model was developed using a deductive approach. The study found out that social media infodemic was responsible for panic banking intention behaviour in Oman. The four determinants of social media panic behaviour were all statistically significantly impacting on panic banking behaviour. The study concluded that social media infodemic is a key determinant of panic banking in the banking sector. In light of the above findings, the banking industry should monitor social media so as to dilute misinformation with factual corporate communications so as to minimise panic banking behaviour.