Rbs Perspectives Social Media Kcm Jan 09

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  • 1. Social media revisited Issue 6 / February 2009 Click on image to view DVD Social media revisited BS: What has happened in the last twelve months in social media and how do you see the trends moving forward? KM: There’s been massive increases in the volumes of people adopting social networks in the last couple of years, not Ben Schreiner interviews Keith MacDonald, Partner Capco just in the UK, but particularly in places like the US, Canada and Australia. Social Media Active internet users usage of is now becoming part of the mainstream Source: Growth in the different social media tools is increasing and not just the preserve of students and Active internet users usage of social media social media platforms as gathered by Universal McCann young people. substantially over time tools is increasing substantially over time A year ago Perspectives Tools are becoming more sophisticated and What is social media / Web 2.0? featured an interview with specialised and will enable the aggregation Maz Hardy on the Facebook of online banking functionality. Reach Over Time % people who have used generation. 100% Social media is a term used to describe commonly used Internet- and mobile-based tools for sharing and discussing information. The term most often 80% Tools are becoming more sophisticated Ben Schreiner, Head of refers to activities that integrate technology, telecommunications and social 60% For example, Tu Cuentas (You Count) Innovation, Group Architecture interaction, and the construction of words, pictures, videos and audio. from Spain’s Banco Bilbao Vizcaya 40% and Business Improvement Argentaria (BBVA), compares your profile 20% speaks to Keith MacDonald Blogs Short for Web logs – online journals or diaries hosted with all the other BBVA customers, in about some of the progress on a Web site order to give you alerts and offers with 0% Wave 1 – Sep 2006 Wave 2 – June 2007 Wave 3 – March 2008 great precision, but it goes a lot further in social media in Financial Collective intelligence Any system that attempts to tap the expertise of a than this through aggregation services, Services during the past year. group rather than an individual to make decisions budgeting services, investment services Read blogs/weblogs Download a podcast and alerts. In addition it allows you to Create a profile on a social network Start my own blog Mash-ups Aggregations of content from different online sources Keith MacDonald is a partner Leave a comment on a news site Subscribe to an RSS feed access Tu Cuentas services using to create a new service Watch video clips online Blackberry, mobile and internet of Capco, leading the firm’s Peer-to-peer networking Sometimes called P2P – a technique for sharing files platforms. It even allows you to use bits Retail Financial Services and of Tu Cuentas services as widgets, (music, videos, or text) over the Internet Wealth business internationally. which you can pick up and drop into any The second category is the big financial Podcasts Audio or video recordings – a multimedia form of a BS: How are Financial Institutions using He is responsible for other Web applications. So you can drop institutions who are trialling different social media? blog or other content your bank balance and alerts onto a developing Capco’s thought technologies – getting involved in online Google personalised home page. KM: From a financial services perspective RSS Really Simple Syndication – allows people to leadership in all aspects of communities, sharing information and there are two main categories of social subscribe to online distributions of news, blogs, learning from the experience. For example retail financial services. media: podcasts or other information American Express is trialling social media in One of the trends in social media is the way the small business segment as is ING Direct There are new entrants with new business Social networking Systems that allow members of a specific site to banks and insurance companies are getting in the US mortgage market. models, such as Zopa and Virgin Money, learn about other interested groups involved in online communities and opening enabling services such as person-to-person up conversations with their customers lending. Such new business models are Web services Software systems that make it easier for different to rebuild some of the trust that’s been now co-existing alongside the traditional systems to communicate with one another lost – for example providing advice on ways of doing business. automatically in order to pass information or indebtedness. There’s evidence to suggest conduct transactions that some customers find advice and support easier to access through an Wikis Systems for collaborative publishing. They allow online channel. many authors to contribute to an online document or discussion. 12 / Perspectives on the future Perspectives on the future / 13
  • 2. Social media revisited Issue 6 / February 2009 In today’s world, organisations have Potential Opportunities: The Global SocialSocial Picture Picture Potential Opportunities: The Global Media Media Source: Capco Research Social Media is a relatively new channel, the medium and long term to accept that customers want to be Socialsee an explosion in its various medium and long term will Media is a relatively new channel, the forms will see an explosion in its various forms communicated with in ways which Social Media Tools are relevant to them Account Aggregation and Analysis Functionalities linking to tailored communities Advanced social M Advanced blogging networking ed Launch Pads in on functionalities – i.e. functionality ia P2P ar ati micro blogging tio g BS: What are the major components BS: What is the value proposition for BS: So who’s doing this well? And what Specialised Insurance Sh rm platform compatibility n Podcasts, RSS of a social media strategy? the customer? are some of the lessons learned from fo feeds and widgets Financial Advice In Sophisticated those who have dabbled? KM: In my view social media can’t be KM: In today’s world, organisations have P2P and focused Internal Money b2c blogs Blogs Mashups looked upon as a separate strategy. It’s too to accept that customers want to be KM: There are a lot of good case studies. Transfer P2P integrated. It’s an extension of channels communicated with in ways which are American Express has a small business Specialised Sophisticated Lending RSS feeds such as internet and mobile. It’s got to be relevant to them. Social media is pivotal in online community site, which is getting c2c blogs and focused P2P Investing Podcasts c2c blogs linked into channels, into propositions and achieving this, Blogs have the power to some good traction. Rabo, in Australia Widgets particularly into the whole segmentation of inform and either drive customers to you or is also having success with communities Specialised Price Comparison Lifestyle Focused Interactive Marketing the customer base. drive them away. Social Networking sites of interest where people share information b2c blogs Communities (i.e. virtual characters Blogs are becoming increasingly important and the financial institutions support the on second life) The level of complexity and sophistication Networking sources of referrals for banks. community. I think it works well where Sponsorship of online Enabling of social media strategies is developing Brand Development forums and sites CEO Blog financial institutions recognise that their Communities Specialised Initiatives rapidly, although the UK is typically less Information Generic Social products are secondary to the consumers’ Viral Marketing Networking Info Physical nities Product focused developed than some overseas. Forums Campaigns key interests – the cars and holidays will communities (traditional and Forums site offers communities Mark Acquis ing & typically be of more interest to people than ‘serious fun’ Strategic Advertising Social Networking Commu models) the insurance and finance products that site presence 1 et Today Hybrid Marketing underpin them. Internal ition – integrated Forums Advanced traditional and viral components “Play Dough Earners” 2 Tomorrow Forums Social Media: Social Media Development In FS Source: Capco Research FS social media initiatives are less developed in the UK, than in other markets 3 e.g. US and Canada, but UK FS institutions are now developing their responses The Future UK FS participant Non UK FS firms Sustainable Holistic Business Model 5 Social Media is fully integrated into the business model. High BS: What are the barriers to adopting BS: Is there an opportunity for large BS: Finally, let’s pretend it’s day one of The firm has adopted a sustainable approach to 5 remaining innovative in this space social media techniques, either internal or companies to adopt more social media your new job as director of social media external to organisations? techniques internally? for the Royal Bank of Scotland – how Mutual Collaboration would you tackle your new role? 4 Fidor The firm integrates user generated content into its KM: Barrier one is an understanding of KM: I think that’s one of the key ways business model and increasingly incorporates social 4 Virgin Money what this is about. People are confused to make this work. There’s so much KM: First of all I would want to understand media into its end to end business model (i.e. online Sophistication p2p lending only product offerings and campaigns with user input) about what it is and isn’t. It’s not just knowledge and expertise within the the brand positioning. Then I would want Wells Fargo Facebook or Bebo, it’s a whole range of institutions using blogs, Wikis and the like. to just get on and try these things out. Reciprocal Communication 3 ING Direct 3 different tools, techniques and ways of Enabling use of these tools for internal I think the danger of not experimenting at Interaction paves way for a two way communication HSBC platform between customer and bank (i.e. user using the Web (and increasingly mobile) communications and collaboration to the moment is that other people are. So I’d AMEX SMB generated blogs which the bank responds too, HBOS to manage content and communities. supplement and encourage sharing of push piloting, testing and learning in the e-CRM data led product differentiation, etc) RBC knowledge and content can only make market and do the same internally. I would 2 Barclays Barrier two is a concern over brand security Reciprocal Interfacing Wizard Bank organisations stronger. promote usage of these tools internally 2 and data, which is very topical at the Social Media evolves to become a channel via which BBVA from senior management all the way down customers can actively and interactively participate moment. This can cause a real reticence in (i.e. open online communities with case studies through the organisation to establish the NS&I 1 or account aggregators on social networking sites) to open up too much. culture and grow the expertise internally, Low which in turn will support what can go out Barrier three, is not allowing the One Way Communication Low High Complexity 1 to the market. experimentation and use of social Shallow social media presence which may include elements through which the bank communicates and media internally. note the above graph is illustrative and does not include all FS firms markets to customers (i.e. via blogs or closed communities) with some social media presence Barrier four, is an old fashioned technology resistance which is ‘we will only use the Achieving a long term and sustainable social media strategy cannot be done overnight technologies that fit into our architecture, we won’t allow greyness around the edges’. 14 / Perspectives on the future Perspectives on the future / 15