The days of visiting a local branch to conduct most transactions are long gone. With the growing amount of time consumers spend online, banks regain opportunities to make up for the lost personal interactions.

For banks considering their presence in social media there’s no more waiting and the time has come to get serious. Banks must get their strategies in motion now. Because of the social media activities of leading brands outside of financial services and the ever growing expectations of customers. Recent Forrester research shows that 42 percent of online adults are interested in engaging with their financial providers.

Social media is a dynamic area of competence and poorly conceived initiatives will squander valuable time, resources and leadership support. 70 percent of firms already have a dedicated budget or specific funding for their social media initiatives. By 2012 this portion will grow to 90 percent. However, two out of three of these banks currently consider themselves to be social media novices. Therefore it’s likely that many will find themselves playing catch-up in this area while others will establish themselves as leaders. Before banks set out on any major social media initiatives they first must align social media with concrete business goals, think about social media across the organization, take careful stock of industry-specific challenges, and bear in mind that mastery of social media requires longterm commitment.

Part of the DNA

Social media can be a valuable pursuit whether a bank’s ultimate goal is enhancing its brand, reducing costs, increasing customer satisfaction, boosting innovation or driving revenue. It comes as no surprise that consumers have a long list of expectations. Such interaction via social media is what they have come to expect from other brands outside of financial services. When asked, the top three ways consumers would like to interact with their financial services firms via social media are: ‘Alert me about upcoming promotions and specials’, ‘Offer customer service’ and ‘Let me read reviews from other customers’.

Banks can start their social media journey with gathering critical knowledge to development their strategy and assure positive outcomes. They must strive to understand what their customers (prospects and competitors) are discussing online as well as the relevant technologies. Many banks new to social media need to focus on building engagement among stakeholders and assessing their willingness to participate.

Banks that place big bets and dive into this powerful channel will long be recognized for their innovation. Social media will be part of their DNA and will make positive contributions to the customer experience and brand. In other words, social media will play a central role in their pursuit of high performance. We are finally not just talking about Facebook and Twitter: Such social networks are just the tip of the iceberg.

For further information about ‘Social Banking’, please contact:

Barend van Doorn
Executive Partner
Financial Services Netherlands
barend.van.doorn@accenture.com