7 Top Daily News on Social Media in Financial Services (11 December 2012): P2P Lending to be regulated in the UK, APAC insurers to focus on social media in 2013.
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 11th December 2012. Please flag any missing major news and share your comments here on our blog, or via twitter (@Visible_Banking).
Starting on April 2014 the peer-to-peer lending pioneered by UK firms will be regulated by the Financial Conduct Authority in order to acquire stability and credibility. More importantly, the regulation will make peer-to-peer a credible alternative to banks.
- The lending industry has lent over £300 million to businesses and consumers
- Funding Circle have facilitated £65 million loans to consumers and businesses
- Rhydian Lewis: “Sends a signal that the Government recognises the growing relevance and scale of peer-to-peer … and [has] understood our potential to rival mainstream banking.”
- Samir Desai: “Peer-to-peer lending as the credible alternative to the banks.”
The FDIC National Survey of both underbanked and unbanked Households found out several US citizens have low financial capability levels and lack access to mainstream financial products. But, mobile technologies may be able to close the gap. Thus, D2D Fund and CFSI are running the Financial Capability Development Competition to help change the people’s financial habits and behaviours.
- FinCapDev is a nationwide challenge that will facilitate the creation of mobile apps
- $10,000 start up cash stipends will be offered to each finalist
- The winner will receive $100,000 at an app demo in June 2013
IDC Financial Insights projects that Asia Pacific insurers will increase technology spending, boasting the most aggressive year-on-year spending. It also suggests strategic investments to add value. However, insurance companies still need to reinvent themselves in order to take advantage of new growth opportunities.
With: IDC Financial Insights’ Worldwide Insurance Advisory Service‘s (@idc) Li-May Chew – CFA, Associate Research Director
- Asia/Pacific insurers increase technology spending by 8% to $18.2 billion in 2013
- Aggregated global IT investments increase to 3.1 percent YoY to $110.7 billion in 2013
- European insures take up 40.5% of global spending even on a 1.7% growth
- North American insurers expect to account for 37.3% global spending on a 2% YoY growth
- A 3.1% rise in insurance technology spending is expected in 2013
NAB has opened a social media command center that will be open 7 days a week in order to make banking with NAB easier and more accessible. NAB resolves hundreds of requests from social media in the form of comments and posts on different social media channels.
- The command center will have 7 staff members from the bank’s marketing, corporate, and digital affairs to monitor about 5000 comments per month
- NAB’s social media community grew over 350% in 2012 and has now over 150,000 followers in 5 social networking sites
- The bank receives 5000 comments and resolves 600 customer service request per month
- On average, the bank has a 10% growth in customer service interaction every month
- Sam Plowman: “This state-of-the-art centre will complement our award-winning customer contact centres to make banking with NAB easier and more accessible for our customers.”
- Sam Plowman: “Our customers don’t switch off on weekends, and now neither do we.”
Survey suggests that more than 1/3 of CEOs ignore the social media reputation of their company when making important business decisions. Many companies are still not ready to use social media to their advantage. They fail to embrace the fact that social media is no longer an option, but a necessity.
- 36% says that CEOs do not care or care less about the company’s social media reputation
- 300 US corporate executives involved in the survey describe their firms as B2B and and had $1 billion annual revenues
- 70% of B2C companies consider social media as a factor compared to the 57% of B2B
- 43% of B2B executives ignores their online reputation while B2C only has 30%
- 63% of B2C believes they can respond to a negative online post within 24 hours while B2B only has 45%
- 13% of B2B executives claim they would not engage in an audience online to defend their reputation, which is twice as much as the 6% of B2C executives
- 71% of larger firms (10,000+ employees) claim their executives consider the company’s social media reputation while only 54% of smaller firms (-10,000 employees) claim so
- 45% of executives in smaller firms do not include social media reputation in decision making while larger firms only has 29%
- Larger firms with over $10 billion annual revenues respond to a negative online post within 24 hours while only 42% of smaller firms with less than $5 billion annual revenues do so
- Mark Shadle: “These businesses, regardless of sector, risk serious reputational damage, as well as miss out on important stakeholder feedback, when they ignore social media conversations about their companies and their industries.”
- Mark Shadle: “Maintaining a positive social media reputation is no longer an optional communications strategy, but instead is a business imperative to be embraced by the entire organization.”
Firms are considering increasing their expenditure in market data and integrating social media into their trading technologies to gain a competitive edge in 2013. A number of traders are now using social media to monitor the market although there is still no clear way to outline and sort social media data.
- 76% of firms expect to increase their technology investments in 2013
- 35% expect in market data and other feeds in 2013
- 51% believe apps that provide greater market data integration with trading communication systems would deliver increased efficiency, competitive advantage, or regulatory compliance
- Simon Jones: “If you speak to traders, they want the latest information, and to be ‘in the know’ because they feel it gives them a competitive edge.”
- Simon Jones: “It’s not easy to depend on the data you see on Twitter, but it can give a trader an insight that he can then go and research elsewhere.”
The Agricultural Bank of China (ABC) held a marketing campaign to celebrate its e-Banking business‘ 10th anniversary. As one of the strategic pillar business of the bank, ABC’s e-banking promotes a new innovation to continue to advance Intelligent Banking in the information age.
With: Agricultural Bank of China‘s Cai Huaxiang – Executive Vice President, Li Qingping – Retail Banking Director and General Manager of the Personal Banking Department, Xiang Songzuo – Chief Economist, Ma Shuguang – General Manager of the e-Banking Department
- ABC remains as one of the top tier big banks with its annual average growth exceeding 60%
- By September, the corporate online banking will have reached 1.7573 million with RMB38.35 trillion transaction volume
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.