Visible Banking - Social Media & Banking 2.0


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Visible Banking - Social Media & Banking 2.0

  1. 1. Christophe Langlois, Social Media: une Verite qui Derange Novembre 2008
  2. 2. Top Banking 2.0 blog <ul><li>I invite you to: </li></ul><ul><ul><li>Subscribe to </li></ul></ul><ul><ul><li>Become a fan of the Visible Banking Page on Facebook </li></ul></ul>
  3. 3. Interview 2.0 on Source: (Sep. 2008)
  4. 4. Your Strategy <ul><li>Income </li></ul><ul><ul><li>Improve customer acquisition & retention </li></ul></ul><ul><ul><li>Drive deposit generation </li></ul></ul><ul><ul><li>Identify & close more cross sell opportunities </li></ul></ul><ul><li>Efficiencies </li></ul><ul><ul><li>Improve marketing spending </li></ul></ul><ul><ul><li>Drive online banking adoption </li></ul></ul><ul><li>Customer advocacy </li></ul><ul><ul><li>Become an ambassador for the sector </li></ul></ul><ul><ul><li>Be seen as an innovative company </li></ul></ul><ul><li>Employee advocacy </li></ul><ul><ul><li>Improve recruitment, training and succession planning </li></ul></ul><ul><ul><li>“ Break the silos” - collaboration all across the group </li></ul></ul>
  5. 5. Your Key Challenges & Concerns <ul><li>Where shall we start? What is going on in the market? </li></ul><ul><li>Tactical vs Strategic </li></ul><ul><li>Senior Management is reluctant </li></ul><ul><li>Risk of brand damage </li></ul><ul><li>How does it fit our strategy? Where is the ROI? </li></ul><ul><li>How do we measure success? </li></ul><ul><li>Limited budget & IT resources </li></ul><ul><li>Security / Integration </li></ul><ul><li>Vendors don’t have a deep understanding of Banking </li></ul><ul><li>Too many vendors/Start ups: young, size, US based, SLA </li></ul><ul><li>Procurement </li></ul>Strategy ROI Technology
  6. 6. <ul><li>How much </li></ul><ul><li>do you know? </li></ul>
  7. 7. The Future of Online Finance... Now New PFM tool Virtual Investing 500,000 users 2.5 million users Closes US office Partners with ANZ 10 new videos / day The next way to invest Launched BizEquity
  8. 8. <ul><li>How much </li></ul><ul><li>do you care? </li></ul>should you care?
  9. 9. Appreciate the Power of Social Media - NAB, Australia (October 2008) - HSBC, UK (June 2007)
  10. 10. People’s Expectations Have Changed
  11. 11. Market Size - 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>
  12. 12. 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
  13. 13. Banking 2.0: Technologies & Trends SOCIAL MEDIA WEB 2.0 - UGC RSS Podcasts Photo & Video Widgets Micro Blogging Blogging Social Networking Inspired by the McCann Social Media Tracker Wave .3 Virtual Worlds P-to-P Lending PFM Customer Reviews Ideas & Innovation Labs
  14. 14. The Four Kinds of Social Media Projects BTF – Intranet 2.0 Online Banking B-to-B projects B-to-C projects Risk Complexity OPEN Open Restricted Restricted Design & Launch Recruit Engage Measure
  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. <ul><li>Credit Crunch </li></ul><ul><li>Risk </li></ul><ul><li>Cost & ROI </li></ul><ul><li>Basics First </li></ul>
  17. 17. 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>
  18. 18. <ul><li>Listen </li></ul><ul><li>Participate </li></ul><ul><li>Engage </li></ul><ul><li>Measure </li></ul>
  19. 19. Blogging: North America Leads the Way Consumer Commercial Senior Executives 03/2006 09/2006 11/2006 08/2006 2007 Q4/2007
  20. 20. Social Networking: Focus on SME Market 04/2008 02/2007 08/2008 01/2008 – 08/2008 2008 10/2007 <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>
  21. 21. Idea Generation & Innovation Labs Financial Institutions Best Practices
  22. 22. Customer Ratings & Reviews Source: db research (June 2008) Source: (Sep 08)
  23. 23. PFM 2.0: Mint & Wesabe Simplicity Innovation
  24. 24. PFM 2.0: the Banks are Catching Up 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. 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) Start ups / Communities / Vendors
  25. 25. 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)
  26. 26. ROI 2.0: Blogging, SN, PFM and Ideas <ul><li>Blogging </li></ul><ul><ul><li>Drive Customer & Employee Advocacy </li></ul></ul><ul><ul><li>Drive natural search, increase CTR, reduce PPC </li></ul></ul><ul><ul><li>Increase share of voice, improve good vs bad ratio </li></ul></ul><ul><li>Idea Generation / Innovation Labs </li></ul><ul><ul><li>R&D: capture feedback, involve the market </li></ul></ul><ul><ul><li>Prioritize product launches, increase our success rate </li></ul></ul><ul><li>Social Networking / Customer Reviews… </li></ul><ul><ul><li>Increase propensity to buy, shorten product purchase cycle </li></ul></ul><ul><ul><li>Create P-2-P networks, excellent for profiling </li></ul></ul><ul><li>PFM </li></ul><ul><ul><li>Increase adoption of Internet Banking (IB) </li></ul></ul><ul><ul><li>Increase traffic to & time spent on IB </li></ul></ul><ul><ul><li>Target duo customers </li></ul></ul>Online Sales Online Marketing Brand Customer Advocacy Employee Advocacy Benefits
  27. 27. <ul><li>Listen </li></ul><ul><li>Participate </li></ul><ul><li>Engage </li></ul><ul><li>Measure </li></ul>
  28. 28. Recommendations <ul><li>Listen first </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, social network, customer reviews, virtual island </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>Measure & set up realistic targets </li></ul><ul><ul><li>Traffic, Member base, activity, RSS Feed readers, comments, blog posts </li></ul></ul>Negative comments: from 75% to 22% ? Source: (Sep 2008)
  29. 29. 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>Connect on Linkedin & Subscribe to </li></ul></ul>
  30. 30. Christophe Langlois, Social Media: une Verite qui Derange Novembre 2008