Social Media vs Banks: Utilisation Required, Customers Understood

When we mention the word “Social Media,” do we actually know what it means and how can we implement it into our daily lives such as our work setting? In recent weeks we have spoken of this very subject and how it can benefit not just individuals but business users. The increase in social networking sites such as Facebook, Twitter, LinkedIn and Foursquare are all in their own way contributing to how we live our lives, and for companies how they can sell their branded products.

We have spoken of the police force and the introduction of social media, how restaurants and public houses can aid their businesses and attract new customers and even the WWE in America. Now the spotlight has been turned on banks and what they can do to understand their customers.

In recent times, banks have gained a pretty bad reputation, they have been blamed for the state of our economy, we have heard about customers protesting over bank charges and so on, so why and how can social media change this? According to wallblog.co.uk, Ovum and market analysts Datamonitor have spoken about a recent report detailing how retail banks have not been using social media to its advantage.

When looking at percentage terms, it seems that at least 60% of retail banks on a global scale, have decided against social media, with a small 6% applauding the idea such as Bank of America and Wells Fargo using it to deal with customer queries, 14% have used it for marketing, whilst a ridiculous 1% plan to use it the next 2 years.

One of Ovum’s analyst’s Martha Bennett interestingly said, “The attitude from retail banks towards social media is a major issue in an era of aggressive competition. Banks without a social media strategy are being shortlisted and are placing themselves in a dangerous and vulnerable position compared to competitors who have realise that social media can and must play an intrinsic role in their business. Consumers are not averse to receiving promotional messages via social media, or using it for customer service enquiries so a massive opportunity to rebuild the confidence in the sector that is so desperately needed is being ignored.”

After digesting this, one bank in particular the “National Australia Bank,” with the help of their Break-Up campaign, aims to show banks how the use of social media can be used, and not just for marketing. By implementing this very thing, social media can be used to manage as they say “understand the customers.”

Tell us what you think about using social media in the place of work? Are you currently working within an organisation that recongises its benefits?

  • Maggie

    This is great and very interesting. The major challenge I see is how can agencies manage a bank's social channels if they are not financial experts? It sounds like it requires a far larger commitment on the client side in order to make social for banks work.