Social Media for Banking Industry


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Our Jt. CEO, Sanjay Mehta, made this presentation at a seminar organised by the IDBRT. The seminar was on the subject of Social Media for Banking sector. The presentation focuses on the communication, Social CRM, ORM and related aspects of social media, relevant for the banking industry.

Published in: Business, Economy & Finance

Social Media for Banking Industry

  1. 1. Social MediaFor BankingIndustrySanjay MehtaJt. CEO, Social Wavelength
  2. 2. Where do these insights come from?A little bit about me..
  3. 3. Our clients include…
  4. 4. Agenda• What is Social Media : A Quick Look at the Fundamentals• Relevance of Social Media Marketing for Banks• “Listening”: Social Media Monitoring• Why Banks are most vulnerable to Social Media damage?• Process for setting up full-proof Online ReputationManagement and Social CRM for banks
  5. 5. “Social Mediais aboutsociology andpsychologymore thantechnology.”~ Brian Solis
  6. 6. Being Social is not about selling, it is notabout marketing, it is not about promoting. Itis simply about "Being Helpful".
  7. 7. “A brand is no longer what we tell theconsumer it is – it is what consumers telleach other it is.” ~ Scott Cook
  8. 8. How BigIs It
  9. 9. >500 million regd usersEvery minute – 72 Hrs worth ofnew video uploadedIf Facebook was a country.Population? > a BILLION!Over 362 million people read morethan 2.5 billion pages every month
  10. 10. But this is kids stuff right? How does it effect mybusiness?First of all, its not just kids.
  11. 11. You may still ask, “Is it for me yet?”• “We are a bank, not MTV – is it for us?” You have consumers? You have a communication need?!• “They are all youngsters – my TG is older” Population vs Internet age mix + they will be customerstomorrow, if they are not already your customers!• “This is all about B2C; I handle SMEs, and mymarket is B2B” Is your buyer a human being? Then you have to be here!• “Where do we find the time / bandwidth..” Ignore at your own risk; FIND TIME! Get outside help, ifnecessary
  12. 12. By the time there is a casestudy in your specificindustry, it is going to beway too late for you tocatch up - Seth Godin“
  13. 13. Let’s look at some specificchallenges that banks face
  14. 14. We are a Young Country..
  15. 15. Clearly this isNOT the kind ofcommunicationthat connectswith today’syouth!!
  16. 16. Clearly, this communication isNOT working; youth notconnecting to the banks! Also the choice of media forcommunication has been TV and print –whereas the youth are spending more timein front of a different screen!
  17. 17. Some more insights• On the functional part, banks havemodernized• Most offer Net Banking and similar features• With technology backends, large number ofinteresting features are also offered by banks• From bill payments to tax payments, fromloan processing to debit cards, frominsurance sales to credit card offers.. Bankshave a lot to communicate
  18. 18. Critical information that banksneed to communicate• Anti-phishing warnings and guidance• Other security related education• Frequent changes in rules and regulations• But how do these get communicated??
  19. 19. With large usage of NetBanking, few people walk into abranch, to talk to bank staff andlearn about new offerings, etc.Bank websites are dense with detail –customers are unlikely to spend muchtime to “discover” stuffUsually, customers go to the NetBanking screen, log in, completework and get out!
  20. 20. Summarizing the challenges then..• Banks need to find the right way to connectwith the large youth market in India – thetonality, the style, the choice of media, etc.• Banks need to communicate informationabout their various new features and offerings– this is not easy via traditional means• Other critical information like anti-phishingand such security guidance also needs to becommunicated – need to find the right way!
  21. 21. The right way: Social Media• Platforms where the youth are spending time• Platforms which enable a natural“storytelling” format• You are not paying for every column-cm orevery second of time; you can make yourpoint gradually
  22. 22. “If we get active on social media,we will be bombarded bycomplaints!”
  23. 23. Does your presence on Social Mediaattract more complaints?• No, it does not• If there are reasons to complain, people willcomplain, whether you are present or not• There are many other forums and places forpeople to go and say nasty things about you• They are not waiting for your presence onsocial media, in that case• On the other hand, if they complain on yoursocial media page, you can learn and respond
  24. 24. An Interesting Case StudyYoung and Free Alberta•Objective: To increase the number of young people opening a checking account in thecredit union.•Strategy: They conducted a contest to find a young spokesperson, who then used ablog, Youtube, and Facebook to connect with other young people in Alberta.• Result: The number of accounts increased from all over Alberta.• 2,316 Y&F accounts• $3,587,000 New Funds
  25. 25. What can Social Media be used for ? Brand Building Generating Sales Leads Reputation Management Real Time Consumer Survey Customer service Co creating products Creating B2B relationships
  27. 27. “Social Media is not just about going out and creatingconversations as a brand. There is huge value in "listening" into social media conversations”.
  28. 28. Two key reasons why you should“listen” on Social Media
  29. 29. I guess the Opportunity story iseasily understood – but whatabout Vulnerability??Banks ARE Vulnerable – and HOW?!
  30. 30. The worst nightmare for a bank!Can it really happen?? You don’t want to know!!
  31. 31. How does Social Media increasethe risk for banks?• Social Media is a convenient outlet forconsumers to vent their ire / complaints• All kinds of consumer-facing brands have hadto face a disturbed customer on this medium• In particular, people are most sensitive whenit comes to their money or feeling cheated• With large access of Social Media happeningover a mobile device, response is immediate!• There is a natural, viral nature to the medium
  32. 32. ..and this is just one out of thousands of internet forums!
  33. 33. ..and this is just one out of thousands of internet forums!With so many banks vying for the same customer, having a positive onlinereputation and earning customers’ trust can be key to standing out over competitors.
  34. 34. Banking rests and exists on the pillar of TRUST!According to Trust Barometer 2012#, a global study by a PR Agency, lessthan 41% of people surveyed said they believed in the Banking Sector.140Millionactive internetusers#70 MillionFacebookMembers #65%people findtheir peers’recommendationscredibleAre youproactive onSocial Media, orwill you let a PRcrisis ruin yourbank’sreputation?#in India#Click to view sourceSocial Media has to clearly be a priority for banks! No two questions on that..
  35. 35. •While the Cobrapost sting and it’s aftermath may die off inmainstream media, it does not get forgotten on the digital space!•When someone searches your bank brand, this could be the firstresult that comes up – even after a few years!Also, Google Does Not Forget!!A bank cannot just pray and wish that this does not happen to them; there have to beefforts to detect and respond to any such challenge that may spring up without warning!
  36. 36. Monitoring Tool Example: Radian 6Radian6 is the most recommended & No. 1 tool in themarket for Social Media Monitoring. It has a widespread coverage with easy to understand GraphicUser Interface with multiple reporting system.
  37. 37. Classification of each ConversationSOURCE BUCKET TAG TONE SIGNIFICANCE ACTION TAKENBlog Product Monitoring √ Medium1st Level ResponsePostedForumCustomerServiceDelivery × Low1st Level ResponsePostedLinkedin Innovation Value √ High1st Level ResponsePostedEscalated to ClientFacebook Partners Responsiveness √ Medium1st Level ResponsePostedFacebook Product Scanning × Low1st Level ResponsePostedYoutubeCustomerServiceAfter Sales Support √ High1st Level ResponsePostedEscalated to ClientDocstoc Innovation Responsiveness √ Medium1st Level ResponsePosted
  38. 38. Social Media ResponseA dedicated online monitoring& support presence can helpthe company improvesupport forInquiriesQueriesComplaintsCompliments
  39. 39. Social Media ResponseCan you addvalue?Evaluate thepurposeRespond inkind & shareThank thepersonUnhappyCustomer?DedicatedComplainer?SomeoneWho Rants?NegativePositiveYes NoDo you wantto respond?No ResponseNoYesTake reasonable actionto fix issue and letcustomer know actiontakenAre the factscorrect?Gently correct thefactsNoNoNoYesAre the factscorrect?Does customerneed/deserve moreinfo?YesExplain what is beingdone to correct theissue.YesIs theproblembeing fixed?YesLet post stand andmonitor.NoYesNoYesYesAssess themessageSTART
  40. 40. If things go wrong: PR CrisisManagement ScenarioTime period0 hours 5 hours 8 hours 15 hours 24 hoursThreatlevelsExtremelyHighHighModerateLowHarmlessFirst appearanceInitialConversationsRapid SharingMainstreamMediaInternetPublications
  41. 41. Questions?Sanjay MehtaJt. CEO, Social Give me your business cards; Iwill be happy to share thepresentation on email2. I have some sample industryreport copies, created usingSocial Media MonitoringTools. If anyone needs it, thesame can be collected fromme.