MyPrivateBanking Blog
Daily Comments on the World of Wealth Management

Posts Tagged ‘social networks’

How banks can become part of their clients’ personal brand

Monday, November 25th, 2013

Evan Spiegel, the founder of Snapchat has been in Europe since turning down the $3 bn offer from Facebook. He has repeated some of his interesting insight and analysis of the social media scene. These include his observation that, unlike Snapchat - which is genuinely recreational in character - Facebook, Twitter and others are all to do with personal branding.

Whether or not you consider personal branding to be cool - Evan Spiegel seems not to - we wonder what kind of private banking would align itself well with possible personal brands. The possibilities for personal branding must be almost endless and no bank could expect to match more than a fraction of them. Nevertheless, there must be some basic pointers that private banks would be well advised to pay attention to.

First off, very, very low rates of interest on clients’ cash deposits is a contemporary fact of life that doesn’t sit well with anyone’s personal brand; it probably makes the customer feel like a sucker. So bankers have plenty of ground to recover in other ways to make clients to want to include them in their personal brand.

The strategies that could help here are an energetic approach in areas like corporate social responsibility and sponsorship. Another area where there is scope for banks to make themselves more appealing is through gaining a reputation for their business banking services to inspiring entrepreneurs or interesting brands.

A bank that is actively (and helpfully) contributing to the market for ideas about investment, economics and business in general will also find that it can become part of clients’ personal brands more easily. If the bank has staff with a recognized media presence on old media and/or new, the likelihood of gaining a place in a customer’s personal social media brand is all the greater.

All these are factors that can make a difference to a bank’s reputation not only among those who cultivate a personal brand but also banks’ less self-aware clientele. However, no private bank has a chance of building the kind of profile that clients like to associate themselves with on social media unless it engages with social media itself.

Our new report on “Social Media for Wealth Management” will be published next week.

(This post is authored by our senior analyst Francis Groves)

 

ISSUU: How Great is its Potential as Social Media for Business?

Thursday, December 6th, 2012

At first glance, ISSUU seems to be filling a significant gap in the range of social media: providing a way for banks and other businesses to engage with the public through print publications in the same way that YouTube provides a vital outlet for corporate video content. The site passes the first test, of providing a lot of attractive content. If you want a beauty parade for publishers and graphic designers, ISSUU is a good place to go. However, the site has yet to be included among the fairly select group of Internet presences that have become meeting places on a mass scale. To achieve that status, ISSUU needs to recognize that readers (and that’s who most site visitors will be) are more concerned with finding individual articles of interest than admiring a magazine cover to cover. They need more help from the site, probably in the form of (blog-style) tags for articles. The finance industry has to accept that their material will be jostling for readers’ attention alongside competitor offerings. If ISSUU insists on always preserving the integrity of individual publications in presenting content, it won’t become the channel of choice for finance industry players to grow their readership.

ISSUU

ISSUU

 

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.

 

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.

 

An Internal Social Media Strategy for Banks

Wednesday, December 21st, 2011

Brainyard has a great piece on Wells Fargo’s efforts to implement an internal social media strategy. The intermediate conclusion goes like this:

“…there have been some early signs that internal social networking tools will add significant value to the company. “We’re still in the first iterations–whether or not internal social networking tools will reduce service times or the email volume remains to be seen,” Carlson-Jagersma said. “But what I do hear from everyone is, ‘Oh, my gosh–it’s so nice to put a face to a name.’ We’ve made this huge company feel a little bit smaller. That has been the immediate benefit.”

I guess this is a pretty good outcome for a start. MyPrivateBanking will in 2012 analyze not online the external social media strategies of financial services companies (as we have done extensively in 2010/2011) but also focus more on the internal side.

 
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