Comments on: Social Media and Banking – Its 1998 all over again!

By: Paul_Reymann

Paul_Reymann — Fri, 20 Nov 2009 00:21:48 +0000

All great comments! Thanks for posting them. As a continuation of this topic, I would value your thoughts around the elevated risks of cyber threats at the application level that will come through the browser – outside the bounds of the institution's controls. I spoke with a lot of people at Interop and Web2.0 in NYC yesterday. When I asked them about this issue, the security folks got it and agreed, although not all of them had thought much about application security in the cloud. On the other hand the Web 2.0 vendors did not get it. Hence, “marketing the value” without acknowledging or knowing about the risk.

Do you agree this is a growing risk? If not, why not? If so, do you have recommendations on how to address it?

By: Natasha

Natasha — Thu, 19 Nov 2009 20:30:59 +0000

Thanks for the comments Katie! Would love to hear about your progress, obstacles, and road blocks with your client. We can all learn together.

By: Natasha

Natasha — Thu, 19 Nov 2009 20:27:37 +0000

Funny that you should mention “relationship banking” and the lack of it. It's almost as if banks just grab on to buzz words and that's all it is a buzz. I think we all can agree that SM can be a customer service differentiator yet we see how banks and Credit Unions are slow getting on the horse and even if they are on they are not moving. Paul brings up some valid points with regards to risks and regulations and I wonder are these the road blocks? Is it just the overall mind set of financial institutions? Perhaps we need more case studies like @1stMarinerBank. I love their chat now feature. I may need to whisper in my bank's ear.

By: Paul_Reymann

Paul_Reymann — Thu, 19 Nov 2009 16:21:48 +0000

Do you agree this is a growing risk? If not, why not? If so, do you have recommendations on how to address it?

By: Natasha

Natasha — Thu, 19 Nov 2009 12:30:59 +0000

Thanks for the comments Katie! Would love to hear about your progress, obstacles, and road blocks with your client. We can all learn together.

By: Natasha

Natasha — Thu, 19 Nov 2009 12:27:37 +0000

By: markwilliamschaefer

markwilliamschaefer — Wed, 18 Nov 2009 20:22:00 +0000

Paul, Thanks for a thought-provoking post. I had not considered the SM impact on banking too much but several obvious plays come to mind.

First and most obviously is "listening." This advice almost seems trite, but it is important. Banks can learn a lot about what is going on with the customer in their micro-markets and also pick up on new business opportunities.

Second, nearly every bank promises "relationship banking" but few deliver it (don't get me started). I am a poster child for developing relationships through social media and have nearly built my entire business from these relationships. It works. However,bring in some professional help to learn to do it right or it will be even worse than before! : )

Third, social media offers a way to differentiate on customer service. This is not a theory ... it is being done in many service-oriented businesses today.

My friend Nitin Gupta, who is far smarter than I am, has written extensively and beautifully on SM and financial services. I highly recommend his blog.

but would suggest you read Nitin Gupta's excellent digital marketing blog

By: katierobinson72

katierobinson72 — Wed, 18 Nov 2009 15:54:02 +0000

Thanks Paul. I have just been assigned the task of starting an Interactive Marketing initiative for a financial institution that specializes in private label credit for retailers. I love what 1st Mariner is doing and hope to be able to integrate social media into our own marketing strategy and integrate our products into our clients social media strategy!

By: Natasha

Natasha — Wed, 18 Nov 2009 15:13:28 +0000

There is no denying the impact of social media. According to Razorfish “64% of connected consumers said they made their first purchase from a brand because of a digital experience.” In the world of banking I completely understand the hesitation and the test the water approach. Just look at their customers. The customer base and target market is diverse [Gen X, Y, & soon Z!] some still want banking as usual. Because of the diversity however, there is no avoiding social media. Tomorrow will soon be today. And when you really think about it, banking is about trust. What better way to build trust than through transparent conversations. As @PeoplesBank said “it gives us a human voice”. So find your voice.

By: bradgarland

bradgarland — Tue, 17 Nov 2009 15:10:19 +0000

Appreciate you posting for us Paul! I received the same insight as you from banks and credit unions about their interest in social media. Lots of people interested in getting involved but many don't know where to start.

I believe that this is a culture shift that many institutions need to question whether they are ready for or not. Their companies have been interacting in this mass marketing mindset for decades now and with many wanting to go more collaborative/relational with their customers...I can see why it's confusing to them because they aren't used to that kind of relationship in business.

My suggestion is to start small and try these things out internally first. Play, screw-up, learn and when the time is right and the institution is ready, engage publicly.