- Language: English
- Published: November 2013
- Region: Africa, South Africa
Social Media and Banking: Brand Opportunity, Risk or Complete Waste of Time?
- Published: March 2010
- Region: Global
- 41 Pages
- Javelin Strategy & Research
Facebook, MySpace, Twitter, YouTube, blogs and other social media are rapidly transforming how Americans congregate and communicate in the online and mobile setting. Leading financial institutions are blazing a path that will change how consumers interact with FIs and gain an increasing measure of always-on, real-time control of their money. There are risks associated with being early to engage in social sites, but there is potential for high rewards for financial institutions and tech vendors that develop cutting-edge tools that tap into the potential of social networks for viral marketing, brand awareness, cross-selling, financial literacy, customer service, consumer forums, timely alerts and always-on interaction. Javelin consumer survey data measures the explosive popularity of social networks, identifies the fast-growing segments and assesses the consumer’s wariness of mixing social networks and banking. It also features case studies of how eight companies are incorporating social media: Addison Avenue Federal Credit Union, Chase, Fiserv, 1st Mariner Bank, MasterCard, Vantage Credit Union, Visa and Wells Fargo.
- How many consumers are using social media, and how fast is it growing?
- Do consumers feel safe in social networks?
- Are consumers ready to mix banking and social networks?
- Whom should financial institutions target and what should they do first to establish themselves in social networks?
- How are financial institutions using social media, and how are they faring?
Findings regarding financial alerts are based mainly on data collected online from:
- A random sample panel of 2,779 households in April 2009, targeting respondents based on representative proportions of gender, age and income compared to the overall U.S. online population. Overall margin of sampling error is ±1.86% at the
95% confidence level.
- Nationally representative identity fraud victim data, collected in November 2009. The survey of 5,000 respondents was conducted using computer assisted telephone interviewing via random digit dialling. For questions answered by all respondents, the maximum margin of sampling error is ±1.4% at the 95% confidence level. The analysis of “Moneyhawks” is based on respondents who received e-mail or text alerts in the previous 90 days. The majority of Javelin data for online banking financial alerts is based on “online households” vs. “individual consumers.” This is a typical way of presenting online banking data because account management is typically collected on a per household basis. In 2009, the U.S. population was estimated to comprise 306 million people. That includes 232 million adults, 118 million households, and 86 million households that are online. On average, there are about 2.6 people per household. Javelin also collects online banking data using a base of all consumers for comparison purposes. SHOW LESS READ MORE >
Executive Summary and Recommendations
Key Players in Social Media
Social Networks Are Emerging As a Way for Banks to Communicate, Interact With Customers
Social Networking Is Now Part of The American Way of Life
Obstacle No. 1: Safety Concerns
Obstacle No. 2: Misgivings About Mixing Social Networks and Banking
Fraud Risks Cast a Shadow Over Social Media
Case Studies: How Eight Companies are Using Social Media
Wells Fargo: Developing a Sixth Channel of Banking Access
MasterCard: Polishing a ‘Priceless’ Image
1st Mariner Bank: Being Where Customers Are Talking
Addison Avenue Federal Credit Union: Initiating Discussions About Finances and Service
Visa: Targeting Audiences on Facebook
Chase + 1: Building Good Credit Habits Among Students
Vantage Credit Union: Turning Twitter Into a Place to Take Action
Fiserv: Facebook App Enables Users to Monitor Accounts
List of Figures:
Figure 1: Consumers Using Social Media Sites (By Age)
Figure 2: Consumers Who Started Using Social Networking Sites in the Past Year (By Age)
Figure 3: Safety of Personal Information on Social Networks
Figure 4: Safety of Personal Information on Social Networks (By Age)
Figure 5: Safety of Personal Information on Social Networks (By Ethnicity)
Figure 6: Likelihood of Using Social Networks for Banking (By Age)
Figure 7: Motivations to Use Social Networks for Banking (Core Millennials vs. Consumers)
Figure 8: Likelihood of Using Social Networks for Banking (‘Moneyhawks’ vs. Those Who Do Not Receive Alerts)
Figure 9: Motivations to Use Social Networks for Banking (Moneyhawks vs. Consumers)
Figure 10: Likelihood of Using Social Networks for Banking (By Gender vs. Consumers)
Figure 11: Fraud Victimization or Data Exposure via Social Networking Sites (By Age)
Figure 12: Wells Fargo’s Blog, Twitter, Facebook, YouTube and Stagecoach Island
Figure 13: MCPriceless’ Page on Twitter, YouTube Channel
Figure 14: Tweet From Frusterated Customer, Facebook Photo Album
Figure 15: Discussion in Addison Avenue Groups, Other Social Media Initiatives
Figure 16: Visa’s “Go World” Facebook Site Features Athlete Profiles
Figure 17: Chase+1 Facebook Page
Figure 18: Vantage Credit Union Online Tutorial For Making Transfers Via TweetMyMoney
Figure 19: Fiserv Video About MyMoney Application on Facebook
Figure 20: Consumers Using Social Networks (By Ethnicity)
Figure 21: Consumers Using Social Networks (By Income)
Figure 22: When Consumers Started Using Social Networking
-1st Mariner Bank
-Addison Avenue Federal Credit Union
-Amplify Credit Union
-Vantage Credit Union
-First Tech Credit Union