MyPrivateBanking Blog
Daily Comments on the World of Wealth Management

Archive for the ‘facebook’ Category

Why wealth managers should consider to add Pinterest and Instagram to their digital portfolio

Wednesday, February 10th, 2016

In our latest research report “Social Media for Wealth Management – Learning from the Best”, we analyzed the social media presences and their popularity of more than 200 wealth managers from around the globe. Our intention was to find out who is the most popular wealth manager on the main networks (Facebook, Twitter, LinkedIn, and YouTube) and to identify major success factors that led to high numbers of likes, followers, and subscribers. Additionally, we took a closer look at Pinterest and Instagram to analyze how wealth managers handle the visual social networks’ specific features, user base, and conventions. While most wealth managers nowadays have an account on Facebook and Twitter, only very few are active on Pinterest and/or Instagram. However, there are clear benefits derived from the industry best practices, they should not ignore:

(Potential) clients see their ‘human face’. Showing the staff, vernissages, branch openings, and sport events visually brings you closer to your clients – and those users who might be clients in the future. Online users like to get the full picture and look behind the scenes and photo and video sharing networks are great platforms that allow wealth managers to offer that.

Great customer support. We’ve seen terrific examples that offered helpful infographics on their Pinterest board, containing FAQs or information on mobile and online offerings. That way, customer support is expanded and presented in an easy-to-understand and engaging way.

Company updates. Posting news and upcoming events helps to keep clients informed about what is going on and makes sure that they don’t miss anything. Especially for HNW clients in might be highly interesting to meet with peers on their wealth managers’ events. Knowledge exchange and networking are additional advantages that help to strengthen your brand and reputation.

Actually, we found few but great examples of well-performing wealth management presences on Pinterest and Instagram. While Instagram is clearly U.S. dominated, wealth managers on Pinterest show a more mixed picture. You can find the case studies for the most impressing wealth management presences on Instagram and Pinterest in our latest report.

 

Can Banks Participate Fully in Visual Social Media?

Tuesday, November 11th, 2014

(by Francis Groves, Senior Analyst)

Visual Media seems to have grown exponentially in the last few years. Instagram and Pinterest only date back to 2010 and 2011 respectively but as far back as June 2013 Pinterest has had second place - after Facebook -  as a driver of traffic on the Internet.

The power of images is often that they tell a story and, as advertisers have known a long time, pictures undoubtedly have a power to pull people’s attention. And people can process images very rapidly. For social media this has meant that all social media presences are becoming increasingly visual. Just think how rapidly images have crossed into LinkedIn and, especially, Twitter. And Facebook is now one of the Internet’s largest stores of images. Not only have images become ubiquitous in social media, the presences that specialize in images are highly effective. Buying rates (the proportion of buyers to visitors) are significantly higher for Pinterest than Facebook, as is the willingness of Pinterest visitors to affirm they are positively engaged by brands through Pins.

So where does this leave the banking industry with its somewhat abstract products and services?  Visual social media guru, Donna Moritz, lists four especially effective uses that images can be put to in social media: handy tips, how to advice, catchy quotes and checklists and a fifth, infographics, which is also effective but not in Moritz’s top 4. So, the secret of successful images could, it seems, be summed up in a word, ‘Advice’. But of these 5 tactics, banks - and then only a few of them - really only seem to be good at infographics. In the finance industry, if you want advice, you go to a YouTube channel or the blog page on the website because we all know that financial advice is complicated; it takes time to explain it and

So it seems as if banks are not yet quite getting the point of visual social media. No, you can’t say very much at a time through a picture or a graphic but the little you do say could have immense pulling power and visual social media sites like Pinterest could be used to advertise a bank’s services and expertise more directly than is currently the case. In short, banks should use their visual social media as hooks to draw people in to what they have to offer. They seem to ‘get’ this on Facebook and Twitter but not on their visual social media presences.

Congratulations to those banks that are leading the way in visual social media. Maybe now is the time to make these presences more than just pleasant places to visit for a few minutes (Pinterest visits were averaging 16 minutes in 2013) and to make them speak more directly about your service, your expertise and your messages. The good news is that some banks have a lot of original graphical material both already on social media and in their archives and the capacity to create even more. Only 20% of Pinterest content is original (as opposed to shared) so there should be plenty of scope for an institution that can use its visual image ‘capital’ effectively.

(Stay posted for our new report on Social Media in Banking which will be published later this November)

 

What wealth managers can learn from BrewDog

Friday, January 10th, 2014

By Francis Groves, Senior Analyst

One of the success stories of 2013 was BrewDog, Scotland’s largest independent brewery, who managed to raise £4.25 million through its crowdfunding scheme ‘Equity for Punks’, ably supported by its own dedicated Twitter stream, #equityforpunks. It’s a heart -warming story and not just because of the beer! A business dedicated to craftmanship in a small community in a picturesque and remote part of the British Isles makes good with the support of loyal supporters around the world.

However, it does highlight some problems for less colorful players in the financial world. BrewDog’s success in financial AND media terms doesn’t offer helpful lessons for wealth managers just because it’s all to do with popularity. And popularity can be ‘here today and gone tomorrow.’ Not that wealth managers have to be unpopular but, in social media terms, they should aim for stimulating and interesting. Wealth managers need to be involved with social media for the long-haul in a way that matches their business. Because, in all sorts of ways - be it investment as deferred enjoyment, contrarian investing or a wealth management approach that has been refined over decades - wealth management is a longer term business.

And to make a long-term business interesting, it needs to show its customers (through social media) that its changing, developing and growing in a way that reflects its own DNA. To put it another way, wealth managers and private banks should be using social media to allow their clients and potential clients to really get to know them. As MyPrivateBanking have often said this requires authenticity on the part of the wealth manager but clients won’t get to know wealth managers through just a Twitter stream or even their Facebook Timeline. These should be used as pointers to the wealth managers expert blog, video commentary or website corporate social responsibility items.

 

Personalization – success factor in bank’s social media strategy

Friday, December 6th, 2013

The world was amazed when Richard Branson, CEO and founder of countless consumer ventures, started to tweet three years ago about his company, events and his personal life. Branson was one of the first CEOs who broke with the common practice that high ranking representatives of companies should stay out of social media. The legendary entrepreneur started tweeting and many were to follow.

Large banking groups and multinational wealth managers feel the challenge to give their firm a human face in age of digital ubiquity. Personal contact with clients, to build or launch relationships, is invaluable especially for wealth managers. With more people spending more time at their desktops, notebooks and mobile devices in the big 5 social networks offline personal contact becomes a scarce good. However, social media offer new opportunities to get close and personal to client. But corporate social media presences and company profiles on social media are not sufficient to foster a real personal relationship on a social network. Only individuals can offer that human touch: Why not follow my personal financial advisor via her Facebook updates? Why not talk to my wealth manager´s CEO via Twitter? Why not ask my bank’s head of the investment committee about the latest economic insights on LinkedIN?

Personalized social media refer to social media channels on either the local/regional level such as country, state or branch level and personal social media presences linked to one person such as a CEO, CIO, or a regular personal financial advisor. These presences bridge the gap between wealth manager and client.

The global wealth manager UBS allows clients to take a closer look at CEO Jürg Zeltner via his personalized blog on the website. Users get information about his career and development within the bank, can listen to his podcasts and read his regular updates.

Alan Higgins, UK CIO of the English wealth manager Coutts, is remarkably active on his Twitter channel. Besides financial market updates he also tweets about cultural events or “best movie of…” list. Moreover, Higgins pays attention to his users by responding quickly and casually to comments to his tweets. A lively Twitter account with high value for customers and a real personal touch are the results.

An outstanding example for local level presences is also German Commerzbank which serves its customers with channels on Facebook for its Hamburg and Munich branches. Customers can get information about opening times, the local team and contact options. The social media team invites users to local events to get to know the bank bridging the online-offline customer experience.

One can imagine many more ways to use social media as a tool to personalize the client experience. It’s up to the financial institutions to leverage this opportunity despite regulatory and other hurdles that might limit the specific content a bank can publish over social media channels.

Our new report on Social Media for Wealth Management 2013: The Train is Leaving


 

GooglePlus: the stepchild of private banks’ social media

Monday, December 2nd, 2013

In our recently published report on social media for wealth management, our analysts included Google+ in their evaluation of wealth managers’ activities on the ‘big 5′ of social media platforms. Launched in June 2011, Google+ not only caught up with Facebook, Twitter, LinkedIn and YouTube but even reached the second place in user activity after overtaking Twitter, by the mid of 2013. With 34% of all Internet users being present on Google+, only Facebook with 46% is still capable of defending its first position.

Given these developments the findings of our analysts are somewhat striking since the overall performance of the 30 evaluated private banks on Google+ is in clear contrast to its increasing importance. On average only 22% offer a Google+ presence. While the consensus still seems to be that being present on the other social media platforms is important, Google+ will gain influence rapidly. Why?

- Because the trend clearly depicts it: after 88 days Google+ had 50 million users. Facebook reached that after 3 years.

- Because it belongs to Google: presences on Google+ definitely have an advantage on Google Search results.

- Because it’s different: information is posted in real-time, without being limited to either space or channel. It gives a more professional impression than Facebook and has more interactive features than LinkedIn.

- Because of selectivity: information can be spread to the right persons through segmenting posts by ‘circles’ (note: Facebook has introduced a similar feature).

- Because of YouTube: Google’s other big social network YouTube, the most important social video platform, is strongly linked to Google+ - moreover, a Google+ account now even is required to sign in for YouTube.

- Because of smart features: Hangouts can be used not only for private chats but also for webinars, directly being posted on YouTube, or conference calls with up to 10 participants.

What is the take away for wealth managers’ social media strategy? Google+ must not be underrated. As the stepchild of social media is growing up, it should be taken seriously - underestimating its influence might carry the danger of lagging behind in the competition for the eyeballs of your clients and prospective clients.

 

Banks and social sharing

Friday, June 7th, 2013

In Mary Meeker’s now famous yearly “State of the Internet” presentation a chart (page 28) shows how strongly Internet users in different countries share their life via social media. Surprisingly, it is the population of Saudi Arabia who lead the ranking (60% “share most or everything online”), followed by India, Indonesia, South Korea and Turkey. The US are - surprisingly - way down the list with only 15% and Germany almost last with under 10%.

Apart from the interesting question why emerging markets are so much more into social sharing compared to Europe and the US, the main point is that social sharing is BIG. It’s important. It’s probably the most important trend from a marketing perspective in the next ten years. So, we are wondering why this trend is largely ignored by banks around the globe. In our latest research on Mobile Apps for Banking and Wealth Management Websites we found that only a minority of banks of about 40% allows (some) sharing of their content via social networks mostly in a very basic version.

Social sharing comes in many different flavors. It’s simple to put a Facebook or Twitter icon below or above every article. But that’s not very likely to generate the kind of user excitement one would like to see in social networks. A bank should think pro-actively about its “sharing strategy” which contains a number of important steps:

1. Ask the right questions: What should be shared? Who should be encouraged to share? Which sharing channels are most effective - given the segment one wants to reach? Plus a few more questions of which the sharing strategists should think about.

2. Generate sharable content: Once the strategy is clear, sharable content needs to be put in the right place. It could be a host of new, engaging client tools on the website - for instance to encourage the clients to think about their financial future in completely new ways. It could be a new mobile game inside our outside the standard banking app. It could be an outrageous video campaign, targeted at a much focused client segment like wine collectors, going viral.

3. Opt for a/multiple sharing channel(s) that fit(s) the target segment: YouTube, LinkedIn, Facebook, Pinterest and/or a host of other platforms. It all depends on the user segment.

4. Test: But beware, there is always the risk that instead of benign recommendations and sharing on social networks you may get a veritable shit storm ridiculing a marketing campaign gone very wrong. To avoid this, some testing and tweaking with real users before you go live is essential.

5. Follow: Make sure you are not missing a success or a shit storm (well, you ain’t gonna miss a real shit storm). So, track your campaigns closely, track the shares/likes/pins, track the comments you get…whatever.

By the way, social sharing is closely related to another concept which will have a major impact in the coming years: “On-demand marketing”. We will talk about this in one of the upcoming blogs…

 

Facebook Banking Finally Arrives

Friday, July 20th, 2012

Fortune is reporting that Australia’s Commonwealth Bank and Facebook are quietly building the first Facebook banking app:

“Facebook is quietly planning just such an offering with Australia’s Commonwealth Bank. Currently in an internal beta, with the first version built in March, the application is expected to launch sometime this year to customers. It will allow Facebook users who are bank customers to make payments to third parties as well as Facebook friends through the social media channel, according to the bank. Commonwealth will secure transactions with its own authentication system — similar to how payments are secured on its online and mobile banking site, a spokesperson says.”

It’s an interesting experiment and also quite logical, given the rising interest of financial services companies in the use of social media. In combination with a fundamental shift in cosumer behavior - the younger generations are heavy users of social media plus the older gernerations are also adopting these platforms - it makes a lot of sense to use social networks also for financial transactions. For the banks the critical question is whether they want to use a third party (like Facebook) or whether they will be capable to offer their own social media channels - not onlöy for communication but also for transactions.

 

How to Leverage Facebook for Banking?

Tuesday, May 22nd, 2012

The big Facebook IPO is history. Some people think it has been a disaster. Personally, I believe that it has been a big success for Facebook. May be the stock is overvalued. But the company has now lots of firepower to gear up its marketing engines, try out new business models and generally become a huge factor in online marketing.This means that banks should think long and hard about the role of Facebook (and other social media) in their marketing strategy. It will be an indispensable building block for every marketing and sales strategy of every bank worldwide targeting private cutomers.

Here is a snippet from our latest report on Social Media in Banking 2012:

“Our analysis gave lots of reasons to think that almost universally banks have neither a comprehensive social media strategy nor a dedicated team to serve all media in an integrated manner. Little better than having no social media presence at all, is sending conflicting messages across various channels or showing no activity for weeks. These mistakes can easily be avoided by establishing a dedicated social media team that ensures the message the company wants to send is communicated in an appropriate way across all channels.”

You can get the whole report here. Over the next weeks we will give some more peek previews of our analysis with regard to Social media.

 
Subscribe