The progressive revolution of digital transformation has touched everywhere in industries over the world, especially the banking sector that leads the digital revolution. The unique opportunity for banks in the new digital landscape has gained the ability to tap into social media marketing (SMM) to reach the wider consumer base, establish a recognizable brand, and develop better in-depth relationships with consumers. The aim of this review paper is to find the importance of SMM as one of the leading aspects towards building brand equity in the service sector. Based on insights from academic journals, the analysis discusses the multidimensional role of SMM in promoting advertising and branding and connection of a firm’s brand with customer engagement. It also presents SMM as a strategic reference discipline for practitioners seeking to improve a firm’s brand image, reliability, and overall brand equity in the marketing perspective. This study contributes to addressing how firms can take advantage of these social media platforms to develop innovative solutions that give them a competitive advantage, as well as increase brand equity. This review compliments the existing literature on Social Media Marketing in banking by confirming its position as a critical means for better equity sharing.