The other day I went on Facebook to try and find the fan page for a very well known bank, which I won’t identify.
I then decided to scour the internet for a blog written on behalf of the bank. I had no luck, other than finding a blog written by an angry customer. What an opportunity missed here!
I began to scratch my head, as I have become so accustomed to big B2C companies using social media platforms, that I just assumed my bank would be using one as well. My assumption felt as safe as a sunrise.
Just for fun, I decided to search for Facebook pages for several other large financial institutions. Out of the four additional banks I looked up, only ONE had a Facebook page, and it was the smallest bank of the four. My subsequent search on Twitter was only a little more fruitful, as I located two of the banks I was researching.
According to a recent article in Bank Technology News, "New research from Ovum finds that only six percent of the 150 global banks surveyed use social media to answer customer inquiries, with only one percent planning to do so within the next year." The article goes on to say, "Twitter and Facebook are only marginally more popular as venues for marketing, with about 14 respondents using the channels for this purpose, and 12 percent planning to make a move in the next 12 months."
I can appreciate why a bank would approach the use of social media very cautiously. It provides a global platform for criticism. And let's be honest, financial institutions aren't on many Christmas card lists these days. To be fair, as one of the comments below so eloquently points out, there are also several regulatory issues that banks must address if they use social media. Though obviously some banks have overcome those barriers, so I'm willing to bet that concern over negative feedback is at least part of the equation.
The primary strengths of social media from a business’ perspective are consumer engagement and community building. Yes, corporate blogs and Facebook pages may invite negative commentary, but they also give a company the opportunity to address consumer concerns, offer factual data that may change negative perceptions, and improve the quality of customer care. In the banking world, social media can provide a measure of transparency where many consumers believe none exists.
Unfortunately, a myopic view of social media is not limited to the financial services industry. Many large and small businesses haven't yet figured out the strength of social media and the competitive advantage it can provide in a rapidly expanding global economy. Some businesses simply don't have the resources to dedicate to social media (which is a discussion for another day), but others have simply made the strategic decision not to adopt it as a communication and customer service platform.
It's time for businesses to recognize that they can't live in protective bubbles anymore. The world is watching and talking about them whether they like it or not. Therefore, they might as well be a part of the conversation.
