Banks – Meet Social Media

For many in the insurance industry and the financial services sector, the idea of social media can be a daunting one. Its rapid advance into our lives brings uncertainty and an inability to truly understand how to use this new technology and how to determine whether or not it is relevant. But whether or not you agree with or understand social media it is becoming more evident that companies are no longer able to ignore it.  The fact of the matter is your customers are using new tools to communicate with each other and in many cases about your brand.

For those weary of social media it is common that primary concerns include confidentiality, security, and a fear of damaging the company reputation.  Many of these fears are understandable.  However, major corporations including banks, that you might consider to be at high risk, have been recently embracing social media and leading the industry.

In the Bank Systems & Technology blog post Citi, USAA Execs Share Social Media Best Practices, author Penny Crosman discusses how big banks are using social media to reach out to their customers.  The post mentions the advent of social media pioneers like Jamie Punishill of CITI who is leading the financial services industry in this area.  The post reiterates that the social media movement is happening with or without your participation.  Some of the main points from the post include:

• Diving in without a concrete strategy, as scary as that sounds, with the hopes of figuring out what works for you on the way.
• Researching your customer use of social media. You might be surprised by the demographic that is actually online.
• Don’t just monitor what is happening, instead jump in and participate.  But make sure you’re prepared to do so when interacting with your customers.
• Be on the lookout for new opportunities in the online space.  Make strategic connections.
• Use the new social media software tools.  There are many of them available on the market, like Radian6, and at the very least they can help you monitor what is going on about your customer sentiment and your brand.

It’s safe to say that social media is transforming the way we communicate with each other and the way our customers communicate with our brands.  If you find that you’re in an industry that hasn’t fully embraced social media then it might be a prime opportunity for you to become a leader in the space and to establish yourself as a first-mover or early-adapter.  This could yield high returns for your company down the road.  And with the way social media is evolving, the option to take the lead might be gone rather quickly.

Major corporations including banks, that you might consider to be at high risk, have been recently embracing social media and leading the industry.