7 Top Daily News on Social Media in Financial Services (06 December 2012): social customer service on twitter, social banking customer, CIMB’s facebook banking.
Since 2007, we’ve curated the best social media in financial services news and initiatives worldwide. We aim to publish on daily basis our selection of the top social media news in our regulated finance industry.
This is our selection for Friday 7th December 2012. Please flag any missing major news and share your comments here on our blog, or via twitter (@Visible_Banking).
According to a recent study by GFT entitled ‘Impact of Social Media on the Financial Services Sector,’ it has been revealed that only a small number of financial service providers actually use social media to interact with their customers. Banks have to integrate their social media strategy and use channels like web 2.0 properties to interact and develop new services.
- More than 1.5 billion users of social networks worldwide
- New trends in financial industry: peer-to-peer loans, micropayments, banking communities
- Christopher Ortiz: “The GFT study shows that, until now, most 2.0 initiatives in the finance industry have been focused on social marketing”
- Christopher Ortiz: “The impact of mobility on banking, social media is a potentially game-changing offering for financial institutions”
The quality of customer service in banks have increased due to the fact that banks and other financial service companies have adopted social media to address customer inquiries. The study conducted by Virgin Business Media shows that about two-thirds of UK banks use Twitter to respond to queries and complaints within an hour.
Key Stats & Quotes
- Two-thirds of UK high street banks use Twitter to respond to customer queries
- NatWest was found to have the fastest Twitter response time with an average of four minutes
- Phil Stewart: “Social media helpdesks are becoming common in industries where businesses interact daily with customers.”
- David Furlonger: “Traditional models no longer apply to many of their customers or markets”
According to a study conducted by Cisco, financial companies can tap into $31 billion worth of revenue opportunity by offering more personalized financial services. These services include social media, high quality video conferencing and other collaborative tools that younger investors find attractive convenient.
- $31 billion opportunity for financial firms targetting wealthy investors aged 55 or younger
- Investors aged 55 or younger accounts to 40% of global investable assets
- 20% of these investors plan to change their advisers in the coming year; compared to 5% for older investors
- Up to 57% of these investors are willing to move their assets to firms that offer video conferencing to connect to advisers
- Jörgen Ericsson: “The rapid adoption of technology is quickly changing the game for interactions between wealthy investors and their financial advisers.”
- Jim Schuman: “The client perceptions and preferences identified in the Cisco IBSG study are factors that we already see influencing the development of innovative business models in financial services.”
In 2012, one in five consumers switched from one company to another due to customer dissatisfaction. Thus, companies need to create the best and most relevant experiences to retain customers.
- 67% of consumers could have stayed in their current providers if their customer service problems were resolved
- 54% of customers asked for rewards in doing multiple businesses
- 63% of customers lost due to broken promises
- 65% of customers were lost due to unfriendly agents
- 61% of customers were lost due to long holds when contacting customer service
- 50% of customers got tired of being asked of the same personal data every call
- Rises in switching is topped by travel and tourism providers at 32%, followed, by retail banking at 27%, wireless phone providers at 26%, life insurance at 25%, internet providers at 23%, and retailers at 22%
- 47% of consumers use 5 to 6 social media sites to research on providers.
- 79% of searches come from WOM, 71% from corporate websites, and 63% from comparison sites, review sites, and news sites
- 31% of consumers base their decision on posts, 28% on positive comments, and 28% on negative ones.
- Robert Wollan: “Companies need to embrace the changing dynamics of what we call the nonstop customer experience.”
- Kevin Quiring: “Many companies…approach their customers with a decades-old, ‘one size fits all’ sales and service model
Four of the biggest retail banks in South Africa use mobile phone banking for the benefit of consumers, allowing them to perform tasks such money transfer and bills payment conveniently. Many banks invest in mobile banking because technology has slowly changed the way people do banking.
With: Google Africa’s (@googleafrica) Brett St Clair – Head of New Products, First National Bank‘s (@) Michael Jordaan (@MichaelJordaan) – CEO, Deloitte‘s (@deloitte) Andre Hugo (@maxrsa) – Digital Director, Absa‘s (@Absa) Arrie Rautenbach – Head of Retail Markets
- South Africa: By the end of 2012, 14-M mobile users will have made a total of R7-B in mobile payments
- Africa: 120-M mobile users will have made a total of R60-B in mobile payments
- 65% of South African mobile users access the internet at least once a day
- Brett St Clair: “On average they have 17 (applications) installed on their smart phones compared with the average of over 30 installed in mature markets.”
- Michael Jordaan: “Ideas are cheap, execution is hard, especially when employees need to navigate corporate bureaucracy to get their ideas implemented.”
Since customers are so engaged in social media, CIMB launched the world’s first fully-integrated bank campaign, Savings Circle. Running in social media networks, it aims to reward customers and their Facebook friends to save together.
- CIMB is one of the early adopters of social media among banks
- The bank has served more than 1.3 million Facebook fans in the Asean region
- Renzo Viegas: “Our customers today are so engaged on social media — we see immense potentials in this channel.”
- Renzo Viegas: “Unlike a typical deposit campaign that is primarily individual-driven, this campaign uses strong crowd-sourcing elements to reward individuals and their friends for saving together.”
ICICI Bank launched iWish to its savings account customers, offering them the flexibility to choose when and how much they will save to meet their goals. They are also given the opportunity to share their goals on Facebook and allow other people to contribute.
- iWish is flexible: allows deposits of any amount at any time
- iWish offers better returns: customers earn recurring deposit interest rates
- iWish and social sharing: customers can share their wishes on Facebook and allow friends and family to contribute
- “Unlike a traditional recurring deposit, iWish is a flexible recurring deposit that allows customers to save varying amounts of money at any time of their choice.”
- “Customers can create several goals and track their progress on an easy-to-use online interface.”
So, are you involved in any of the initiatives mentioned today in our top news on social media in financial services? Are you working on similar projects at your financial institution? We invite you to share your views and your own top social media news on our comment section or via twitter.