8 Top Daily News (18 Dec 2012): ICICI’s social media strategy, Thai banks’ facebook banking, P2P lending, big data, social insurance brokers.
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 Tuesday 18th December 2012. Please flag any missing major news and share your comments here on our blog, or via twitter (@Visible_Banking).
As more Australians use Android phones, two major Australian banks are changing their approach on the development of important mobile applications. Recent research revealed that Android has over-ranked Apple’s iOS as the most used operating system. Thus, banks should accept the supremacy of the choices of customers, according to Michael Harte, CBA‘s tech chief.
- Android has jumped from less than 15% to 25%-30% of users
- 45% of them are on various Samsung Galaxy incarnations
- Travis Tyler: “To execute on our strategy we need to be where our customers are, so if they are choosing to use an Android phone then they can’t be penalised for that by not having access to the latest apps.”
- Michael Harte: “In the long game we are device-independent, carrier-independent and channel-independent, because the customer is going to use whichever device they choose.”
Social media is a major influence among Thais with Facebook users in Bangkok outnumbering any other city in the world. Kbank Live, Kasikornbank‘s fanpage, is ranked on top among banking Facebook pages with 340,000 fans. Krungsri Simple is ranked fourth with more than 130,000 fans. Banks plan to improve digital banking, incorporating intelligent and innovative features to create a different consumer experience.
- Bangkok has 8.68 million Facebook users
- Kbank Live is the no. 1 Facebook fanpage with 340,000 fans
- From 200,000 after Kbank’s launch, fans increased 70%
- Krungsri Simple ranked fourth with 127,000 fans through their 80% lifestyle and 20% financial content
- Art Wichiencharoen: “We have to balance between life and finance and talk about customers rather than the bank.”
- Philip Tan: “It’s a very thin line between commerce and friends on Facebook. We want to have the same relationship with customers, in both the real and the virtual worlds.”
ICICI Bank launched its Facebook application that allows customers to see their bank statements on the social media platform. The bank realizes the important of social media to interact with customers and manage their reputation. Chief Financial Officer, NS Kannan, states that the bank’s objective is to provide customers with a way to engage with the bank at their convenience.
- Facebook has over 65 million active users in India
- In 10 months, ICIC bank has built a 9.5 lakh strong Facebook community
- The bank’s channel has acquired over 1 lakh views in less than a year
- NS Kannan: “We launched the one-of-its-kind application that allows a registered user to check his account details while on the social media platform and also avail a host of services.”
- NS Kannan: “The insights that we have gained from consumers about our products and services have helped us in improving customer satisfaction.”
Andrew Haldane believes that P2P (peer-to-peer) lenders can replace conventional banks as they offer higher returns for savers and lower cost for borrowers. However, at the present time, it is still just a minor irritation rather than a competition to banks.
- Zopa (@Zopa) has lent £250m since 2005
- Funding Circle (@FundingCircle) has lent £66m
- UK Government announced four P2P lenders be given £55m
- Andrew Haldane: “I see opportunity knocking for finance. Hopefully, the growth of peer-to-peer lenders and those involved in crowd-funding will help solve the problems we have with lending for small and medium enterprises.”
Since some consumers will still need brokers to help them shop, brokers should not ignore social media to attract consumers. They should make sure they use it to deliver the end product faster and easier. According to Anthony Day of commercial Insurance, Suncorp, this is a great opportunity for brokers to provide consumers with cost-effective insurance cover.
- Anthony Day: “Technology will increasingly play a role in the distribution of commercial insurance products to customers in 2013.”
- Anthony Day: “Brokers should not ignore technology, including social media, to attract customers. Likewise, brokers should ensure they use technology in conjunction with insurers to make it easier and faster to deliver the end product.”
St George Bank Saves Customers Time With New Unauthenticated Mobile Banking App [Mobile]
St George Bank launched a new application feature, Money Meter, allowing users to check their balance several times on their iPhones without logging in to the mobile banking service. However, once set up on the customer’s iPhone, anyone with access to the phones can view their bank balance. Thus, users are advised to set up a PIN and install remote wipe software for protection.
- 65% of log ins are from users who check their balance
Mobile Banking And Online Banking Users Are 61% More Profitable [Mobile]
Intuit revealed that people who engage in online and mobile banking are more profitable and engaged with their bank compared to those that doesn’t. According to Russel Lester digitally extending the branch experience makes banking easier. Thus, financial institutions should reconsider their fund allocation and recognize the value that this strategy delivers.
- About 50 financial institutions were surveyed from July 2009 to September 2012, representing 2.5 million with current accounts
- Intuit found out that the number of mobile banking users is 19 times higher, jumping to 31 times when tablet log ins are added
- People aged 50 and above log in 12 times per month
- Mobile and online customers are 61% more profitable than offline customers
- Russell Lester: “Extending the branch experience digitally lets consumers and small businesses do their banking easily on any number of devices in ways that they never could in the past.”
- Russell Lester: “The data is clear – greater engagement via digital channels leads to better financial outcomes for the user and the financial institution.”
Top CEOs, namely John Dineen of GE Healthcare, John Thiel of wealth management Merril Lynch, and Naren Gursahaney of ADT, shared about the age of Big Data transformation. Each defined Big Data in their own way with Dineen and Gursahaney agreeing on the use of multiple sources to collect data, and Thiel deeming that it is the ability to find opportunities that would not be available without the amount of information collection.
On the use of Big Data, all three companies are in sync with their goals – personalized services for customer satisfaction. On the other hand, Merril Lynch’s CEO believes that Big Data is a great opportunity to search for information in the right sources and find unexpected behaviours to challenge norms, test and debunk hypothesis, and analyse strategic direction.
- 2.5 quintillion bytes of data are produced every day
- John Dineen: “Harnessing big data means gaining the ability to go out and collect data from multiple sources in order to make better decisions.”
- John Thiel: “Big data is the ability to spot trends and opportunities that otherwise wouldn’t be available without the amount of information you can aggregate to do that.”
- Naren Gursahaney: “Big data is the ability to draw unique and specific insights from masses of information.”
- John Dineen: “In healthcare big data can lead to significant clinical breakthroughs. For example, we must connect the right patient with the right drug.”
- John Thiel: “Financial services as an industry has solid opportunities for growth. By understanding aggregate trends better through data we can advise clients better.”
- Naren Gursahaney: “Big data will help us successfully expand from just security into home automation.”
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 social media, facebook banking, big data projects at your financial institution?
We invite you to share your views and your own top social media news on our comment section, via twitter or on facebook.