Banking and Social Media
The rise of social media represents one of the most enigmatic changes in customer behaviour to face the financial services industry in the last ten years. The growing inter-connectedness of the world’s customers underscores the complete transformation of how we all interact with our trusted networks, including the companies we choose to provide us with services. While these changes can be confusing and concerning to established players, IBM believes that they offer a great opportunity to financial services companies and banks in particular.
In this paper we look at why a bank would want to use social media and particularly social networking sites such as Facebook and Google. IBM offers a solution in the form of a social network ‘banking hub’ and provides simple steps for financial services companies to follow in order to create a successful banking experience through a social network.
The integration of social networks and banking has become something of a buzz concept recently. Many banks have already created presences on social networking sites. These have ranged from profiles focusing on corporate activity (such as Royal Bank of Scotland), to online web chat via social networks (Auckland Savings Bank in New Zealand), to virtual banks (Tookem by Credit Agricole in France), to fundraising sites (Chase Manhattan in the US). Other banks have launched successful Twitter accounts (Bank of America) or YouTube channels (Fifth Third Bank in the USA). To support this push, many banks have recruited social media managers, yet progress has been patchy. It has largely been driven by the perceived need to do something, compounded by a lack of industry consensus around what that something, should be. This is well illustrated by the fact that many of the social media accounts set up are now inactive.