Banks need to waken up to the potential of social media

According to Datamonitor The rise of social media has facilitated a fundamental shift in the way consumers receive information, especially in the UK, where Datamonitor research shows that 50% of consumers are using online tools to make financial decisions, compared to 41% globally. UK traditional banks must therefore recognize the value of social media if they are to retain customers in the thawing economic climate….: Research Store – Banks need to wake up to the potential

Of course they DO have a point but the reality for banks (and General/Corporate insurers) is slightly different in so far as, whist they crave TRUST, they are nowhere near a position to get it.

WHY? Because they need to earn it.

They can no longer rely upon a customers’ indebtedness as a means of building or maintaining market share for the longer term. In truth they have preferred this method to the more expensive course of earning loyalty through quality and consistency of service and products. In which case Facebook, twitter and the like can only be a case of “dabbling” in social media. Still, it may be a more effective means of marketing than costly TV and press “noise” trying to tell the populous how nice, caring and downright cuddly they are…whilst the truth is that they are starving business, squeezing homeowners and punishing individuals with credit card debt by milking the lowest Bank of England rate in a generation.

How do they earn it? Well a good start would be to work toward offering their customers a better overall proposition with TRANSPARENCY at its core. Engaging with their customers. Listening. Incentivising, rewarding and retaining customers’ whose risk profile merits it. Investing in quality rather than spending on sales, to develop competitive advantage and attract new customers.

SO, if it is really so simple why isn’t it happening? PLEASE FEEL FREE TO SUBMIT YOUR OWN THEORIES but, from what I have seen, it is a case of it being such a dramatic cultural change that it would require an admission of how badly served their customers have been which would be contrary to the prevailing culture and could (should) lead to a loss of office…with associated power and wealth.

IF I am even part right don’t expect to see your bank offering to interact with you or your business on a digital platform in the near future UNLESS of course one decides to jump (others WILL WAIT UNTIL THEY ARE PUSHED!) to seize the moral high ground and all that goes with it!


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