Visible Banking: Social Media, The Inconvenient Truth


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Visible Banking: Social Media, The Inconvenient Truth

  1. 1. Christophe Langlois, Founder Social Media: The Inconvenient Truth October 2008
  2. 2. Top blog dedicated to Banking 2.0 <ul><li>Subscribe to </li></ul><ul><li>Become a fan of the Visible Banking Page on Facebook </li></ul>
  3. 3. Interview 2.0 on Source: (Sep. 2008)
  4. 4. Banking 2.0: Changing People’s Life Source: – loans funded, women entrepreneurs in Ivory Coast (Sep. 2008)
  5. 5. The HSBC case on Facebook (June 07)
  6. 6. Web 2.0 – Definition(s) <ul><li>“ Online applications, platforms and media which aim to facilitate interaction, collaboration and the sharing of content” Source: Universal McCann, Social Media Tracker Wave.3 (March 2008) </li></ul><ul><li>Web 2.0 attitude </li></ul>
  7. 7. Banking 2.0: technologies & trends SOCIAL MEDIA WEB 2.0 - UGC RSS Podcasts Photo / Video Sharing Widgets Micro Blogging Customer Reviews Blogging Social Networking Inspired by the McCann Social Media Tracker Wave .3 Virtual Worlds Predictive Markets P-to-P Lending PFM
  8. 8. From the Research Firms <ul><li>“ 26% of search results link to user-generated content.” Nielsen BuzzMetrics </li></ul><ul><li>“ More Americans will turn to online person-to-person (P2P) social lending networks to pay off credit card debt, with the amount borrowed for this purpose expected to grow from $38 billion in 2007 to $159 billion by 2012.” Javelin Research & Strategy, December 07 </li></ul><ul><li>“ By 2010, social-banking platforms will have captured 10% of the available market for retail lending and financial planning.” Gartner, February 08 </li></ul><ul><li>“ Enterprise spending on Web 2.0 technologies will grow strongly over the next five years, reaching $4.6 billion globally by 2013.“ Forrester, April 08 </li></ul>
  9. 9. Shall we embrace social media?... <ul><li>Credit crunch </li></ul><ul><li>Limited trust </li></ul><ul><li>New customer expectations </li></ul><ul><li>The power has shifted </li></ul><ul><li>Limited IT & Marketing Budget </li></ul><ul><li>Transformation programmes and iconic projects </li></ul><ul><li>Strategy - Towards Customer Advocacy </li></ul><ul><li>… where shall we start? </li></ul>Transparency Show we have a soul Customer Advocacy
  10. 10. Web 2.0: Opportunity Assessment Matrix 12 H L L Time-To-Market Customer Advocacy H Low 1. Online reputation monitoring 2. Photo & Video Sharing 3. Podcasts 4. RSS Medium 5. Blogging 6. Micro Blogging 7. Social Networking (participating) High 8. Virtual Worlds 9. Social Networking (own) 10. Widgets 11. Customer Reviews 12. PFM Tool Projects by complexity 5 1 2 3 4 6 7 8 10 11 9 ROI High Med Low
  11. 11. Web 2.0: Opportunity Assessment Matrix 10 H L L Time-To-Market Customer Advocacy H Low 1. Online reputation monitoring 2. Photo & Video Sharing 3. Podcasts 4. RSS Medium 5. Blogging 6. Micro Blogging 7. Social Networking (participating) High 8. Virtual Worlds 9. Social Networking (own) 10. Widgets 11. Customer Reviews 12. PFM Tool Projects by complexity 5 1 6 7 8 12 11 9 2 3 4 ROI High Med Low
  12. 12. 10 “good” reasons against social media <ul><li>We have already tried! </li></ul><ul><li>UGC is too risky </li></ul><ul><li>No clear ROI </li></ul><ul><li>Limited Marketing budget, limited resources </li></ul><ul><li>Only good for small FIs and direct banks </li></ul><ul><li>The mighty Press Office and L&C departments </li></ul><ul><li>Personal branding: risk of loosing our best people </li></ul><ul><li>Our new online channel will deliver everything... </li></ul><ul><li>Intranet 2.0: confidential documents made visible </li></ul><ul><li>Focus on the basics: single view of the customer... </li></ul><ul><li>Source: (August 2008) </li></ul>
  13. 13. ROI: online reputation, natural search <ul><li>Aligned to your strategy </li></ul><ul><ul><li>ROI measured against Engagement KPIs </li></ul></ul><ul><ul><li>Ambassador for the sector, most recommended bank </li></ul></ul><ul><li>Revenue Generation & Cost Savings </li></ul><ul><ul><li>SEO – Improve natural search, drive PPC costs down </li></ul></ul><ul><ul><li>Increase online sales – Lead generation - Targeted advertising </li></ul></ul><ul><li>Marketing & Customer Advocacy </li></ul><ul><ul><li>Increase proportion of Good vs bad comments, real time market data </li></ul></ul><ul><ul><li>Optimize press releases, marketing campaigns, create & sustain WOM </li></ul></ul><ul><ul><li>Increase your reach and create dialog with the influencers </li></ul></ul><ul><li>Brand recognition </li></ul><ul><ul><li>Counter attack brand jacking & help deal with brand dilution </li></ul></ul><ul><ul><li>Increase share of voice online: becoming a leader in those conversations </li></ul></ul>
  14. 14. Recommendations <ul><li>Listen </li></ul><ul><ul><li>Monitor online reputation, risk of brand dilution, and lack of ownership </li></ul></ul><ul><li>Create company pages on major social media sites </li></ul><ul><ul><li>Avoid brand jacking, go local, employees/champions </li></ul></ul><ul><li>Start where it makes sense </li></ul><ul><ul><li>Blog, presence on leading social networks… </li></ul></ul><ul><li>Do it right: be honest & transparent </li></ul><ul><ul><li>Drive recruitment, engage, REWARD </li></ul></ul><ul><li>Manage expectations – Set up realistic targets </li></ul><ul><ul><li>Traffic, Member base, RSS Feed readers, Comments, Content produced, blog posts </li></ul></ul>Negative comments: from 75% to 22% ? Source: (Sep 2008)
  15. 15. The Key to Success: Reward People Successful Social Media initiatives, Buzz & WOM Active Communities Fun / Experience Visibility Exclusive Content Contest / Prizes
  16. 16. Personal Finance Management 2.0 Banks “ It's nice to see a bank who's at least thinking about people in their 20s. That said, it's just so far from complete. On Mint, we see that 55% of our users have student loans. 95% have accounts with other institutions. Until banks provide an elegant system for pulling all your information together in one place, accurately showing your spending and cashflows so that you budget and save, and show you (objectively) ways you can save money, I'm not too worried.” Aaron Patzer, Founder & CEO, Source: (July 2008) Startups / Communities / Vendors
  17. 17. Blogging: North America leads the way 02/2008, 1, 22 12/2004, 14, 237 03/2006 09/2006 11/2006 07/2006, 2, - 07/2006, 2, - 08/2007, -, - 08/2006 2007
  18. 18. Social Networking: focus on SME Market Q4/2007 04/2008 02/2007 08/2008 01/2008 – 08/2008 2008 10/2007 05/2008
  19. 19. Being an Ambassador for the sector <ul><li>Young & Free Alberta, Common Wealth CU (Canada) </li></ul><ul><ul><li>“ The Young & Free Initiative is a platform designed to help define freedom for Northern Albertan youth and provides fun and educational resources to help and challenge young people to move towards that freedom.” </li></ul></ul><ul><li>Change Everything, Vancity (Canada) </li></ul><ul><ul><li>“ If you want to make changes - in your own life, in your neighbourhood or in your world - then Change Everything is the site for you. It's fun, it's free and it's a great way to work towards positive change for you and our community .” </li></ul></ul><ul><li>Small Business Online Community, Bank of America (US) </li></ul><ul><ul><li>“ Our goal is to partner with small business owners across the country to help them achieve their dreams of owning and operating a successful business.” </li></ul></ul><ul><li>Join2Grow, Fortis Bank (Belgium) </li></ul><ul><ul><li>“ The site provides a platform where entrepreneurs can interact and exchange ideas with others who share similar life-goals, ambitions, and dreams . It is also a place of opportunity , where entrepreneurs can discover and make contact with potential partners and collaborators throughout Europe.” </li></ul></ul>
  20. 20. The potential for Customer Reviews Source: db research (June 2008) Source: eMarketer (June 2008)
  21. 21. Bank of America: Customer Reviews Source: (Sep 08) 09/2007 10/2007 08/2007 06/2008
  22. 22. The widget economy is real <ul><li>– 23% of social network users have installed an application </li></ul><ul><li>– 18% of bloggers have installed applications in their blog templates </li></ul><ul><ul><li>Source: McCann, Social Media Tracker Wave .3 </li></ul></ul>Source: (Sep 2008) Source: (Sep 2008)
  23. 23. Advanta: Ideablob
  24. 24. 1 st P-to-P microlending website <ul><li>Launched in October 2005 </li></ul><ul><li>Goal: facilitate loans totalling $100m in 2010 </li></ul>“ If you look at, people with a very modest amount of money can make a huge positive impact all around the world. There are so many people who want to give but don't really know how to do it.” President Bill Clinton Source: (Sep 2008)
  25. 25. Advanta partners <ul><li>Launched in April 2008 </li></ul><ul><li>Benefits: contribute to making the world a better place, online buzz, reputation, customer acquisition </li></ul>Source: (September 2008)
  26. 26. Advanta: the King of WOM <ul><li>Facebook: 27 groups (out of 36) </li></ul><ul><ul><li>From 4 to 848 members (24/09/08) </li></ul></ul><ul><ul><li>With an average of 95 members </li></ul></ul><ul><li>Presence on MySpace, flickr, YouTube </li></ul><ul><li>Offline events </li></ul>01/2008, 8, 96 -, 97 05/2008, 165, 2
  27. 27. Advanta: Promote Your Initiatives Source: (September 2008)
  28. 28. Advanta’s BizEquity: Custom Valuations <ul><li>Founded & launched in 2008 to empower small business owners with tools and information to help determine the estimated value of their businesses. </li></ul>Source: (September 2008)
  29. 29. PR 2.0: the death of the Wire Source: (21/09/08) Source: twitter (21/09/08)
  30. 30. The banking industry is (almost) ready <ul><li>Today </li></ul><ul><ul><li>A few banks are experimenting </li></ul></ul><ul><ul><li>Social Media professionals </li></ul></ul><ul><ul><ul><li>VP Social Media, Director of Social Media, Social Media Manager </li></ul></ul></ul><ul><ul><ul><li>Head of 3D Experience </li></ul></ul></ul><ul><ul><ul><li>SVP Experiential Marketing </li></ul></ul></ul><ul><ul><ul><li>Director, Online Banking & Engagement </li></ul></ul></ul><ul><ul><ul><li>Web 2.0 Strategist </li></ul></ul></ul><ul><li>Tomorrow (wish list) </li></ul><ul><ul><li>The CEO, one of the social media champions </li></ul></ul><ul><ul><ul><li>Own blog </li></ul></ul></ul><ul><ul><ul><li>Talk to our CEO, Mon-Fri between 12pm-4pm </li></ul></ul></ul><ul><ul><li>Dedicated Social Media Teams </li></ul></ul>Marc Hedlund co-Founder & CEO, Wesabe
  31. 31. The Future of Online Finance Source: coverage of FinovateStartup on (April 2008)
  32. 32. Q&A - Thank you for listening <ul><li>I invite you to: </li></ul><ul><ul><li>Send me your questions to [email_address] </li></ul></ul><ul><ul><li>Comment my next post on “Retail Banking Innovations” </li></ul></ul><ul><ul><li>Connect on Linkedin & Subscribe to </li></ul></ul>