In last couple of years social media became increasingly popular amongst the consumers, but also became increasingly important tool for various companies. Therefore, the presence of banks and other financial institutions on social media is a logical act in order for these institutions to reach their target audience. The number of social media platforms is growing rapidly, a fact both the consumers and the companies are aware of. In consideration of this fact, the companies are trying to make certain services to their clients available over social meda, like making transactions. Todays consumer wants to use services the banks provide in the quickest and simplest way available, and it is on the providers of those services to make that possible. It is known that banks and most of business institutions have their presence on social media and value social media not just as a way to reach their target audience, but also to achieve better marketing position and profit with it. In bank practice there are four main models for applying social media: social media as a marketing tool, as a communication channel, as a platform to recieve comments and reactions from their clients, and the last and least used, for using social media for transaction business with the goal of realizing active financial operations. There are sucesssful examples of banks that implemente transaction business over social media. Itis important to notice that banks are sucessfully using the first three models, but are pretty reluctant to use social media for transaction business. Considering the expantion of reach of social networks, it can be predicted that the application of the fourth model will affirm it as an innovative and profitable way of banking services.