Arguably, however, the greatest benefit of SM is that it can help improve customer loyalty and re-establish trust.
KPMG’s recent Social Banker v2.0 report takes a look at the rise of SM within the banking sector and provides key insights from retail banking executives (including from ICICI Securities, RBS and NatWest ), social media experts and KPMG’s own industry insiders from around the world.
Their insights are essential for anyone looking to take the journey towards going social.
In addition to the broad range of articles contained within the report; which include discussions on social media in the developing world, crowd-funding, gamification, ensuring compliance, and more; there are four significant themes that consistently appear around social media investment and attention.
All of which help answer the question of how banks will be impacted by social media in the mid- to long-term.
There’s little doubt that there was a significant loss of trust in banks during the Global Financial Crisis, especially in Europe and the United States. Here in the Asia Pacific we were thankfully spared some worst ramifications; however, as international banks begin reshaping their activities in the region to focus on building regional branches, being more customer-centric and rebuilding trust, Australian banks must follow suit to remain competitive.
This will involve, as international banks are doing, using social media to re-engage with their consumers and build trust. Some (such as ING Direct Canada on page 10) are using SM to identify and directly respond to customer complaints while others are using SM ‘gamification’ (ICICI Securities on page 16) as a way to improve customer financial literacy and potentially interest a younger generation of customers.
The simple act of connecting with your peers is extremely important; especially when you’re aiming to become a more innovative and client-centric organisation. Social media can be a dynamic internal channel that engages employees to support behavioural and cultural change (see page 12). Crowd sourcing has also been used to enable employees to work collaboratively to solve problems, evaluate ideas and help management understand employee concerns (read more about it on page 20).
Social media has already assisted banks develop new business models and potential revenue opportunities (see page 14 for RBS and NatWest’s approach, which helped build their profile in the small to medium enterprise market). From crowd-funding to virtual currencies, the potential is there – for those willing to take the risk.
Non-traditional competitors (online retailers, fast food chains, supermarkets, etc) have a lot to teach Australia’s banking sector when it comes to using social media to engage with customers – as do some international banks (see page 6 on Nigeria’s GTBank and their diverse digital footprint).
Social Media is here to stay and it’s forcing businesses to become far more engaged with their customers. This should be seen as a benefit, not a nuisance. However, as with everything, being forewarned of the challenges is as important as seeing the possibilities.
For further information and to download the Social Banker v2.0 report, visit kpmg.com/socialbanker