MyPrivateBanking Blog
Daily Comments on the World of Wealth Management

Archive for May, 2012

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.


Why Financial Services should not underestimate Facebook

Tuesday, May 8th, 2012

In the latest issue of NYMag there is a great portrait on Mark Zuckerberg by the infamous Henry Blodget. The former Internet star analyst, who was one of the evangelist of the DotCom bubble, makes some very good observations about Zuckerberg: he is a great CEO, he is a product genius, he has a very ambitious long-term vision and he doesn’t care about the short-term view of Wall Street. One may add: business people from more traditional industries tend to underestimate the guy who usually appears in a hoody before analysts or other Wall Street type suits.

In the banking industry and in the financial services industry in general, people do also tend to underestimate Zuckerberg and Facebook as a business factor. Our latest report shows, that the most important social network of the world is not very important to financial executives: on average, banks reach only 60% of the total possible points for their Facebook presence in the MyPrivateBanking benchmark.

This is a big mistake…as Paul Ford writes:

“Facebook’s platform has been so overwhelmingly successful that the company hardly had time to do anything but grow. Yet when the growth of the network itself slows, as it too inevitably will, Facebook-as a publicly traded leviathan whose mandate is to increase profits-will need to find new ways of slicing and dicing humanity into groups that will respond to marketing. That’s what lurks on the other side of peak Facebook, and it is going to suck.”

Or, to draw a slightly different conclusion, Facebook will do to the service industries what amazon has done to retail.


Why is benchmarking so important for Social Media?

Thursday, May 3rd, 2012

Our latest report on Social Media in Banking 2012 shows that there are extreme differences in the social media strategies of leading banks worldwide. Whereas we found a relatively small elite group of banks that is mastering the requirements of social media (lead by Citibank in the US and BBVA of Spain) a large group of banks is lagging, only offering a very basic social media effort to their clients and online users. Another significant group is even further behind, offering not even a minimum of social media content.

Today it is a no-brainer that social media is rapidly becoming one of the leading channels in shaping the communication and conversation with customers. Young, middle-aged and even older folks are populating social networks in ever increasing numbers, discussing all topics from babies to banking, linking to their favorite stuff and sharing opinions about virtually everything. Fiancial services companies - targeting retail, affluent or small-business customers must become part of these networks or perish. It’s basically like the decision around 1994-1999 whether to have a website and offer online banking.

To learn from the best social media practices of the leading financial players in this fast moving market is an easy and simple way to play the catch-up-game. It is not about copying but about learning and adapting. Every (digital) marketing executive of a bank worldwide should be aware of the strategies and tactics of the leading players. It is the first and necessary step to develop a sustainable strategy of their own to navigate the social media world today. The next step is to create a unique and differentiated profile in networks like Facebook, Twitter and co. - attracting new customers and increasing the loyality of existing customers.