Some customers choose social media banking

Online banking is old hat for hundreds of thousands of consumers who transact via their computers and mobile devices without regret. But a growing number of consumers are willing to try something even more radical. According to Bankrate, 1 in 10 consumers are comfortable with mixing social media and banking, using Twitter to tweet for account balances and more.

Ten percent choose social media banking

A new study by California syndicated research firm Javelin Strategy & Research found that 10 percent of banking customers surveyed are willing to trust their online banking to social media tools. Javelin’s Senior Multichannel Financial Services Analyst Mark Schwanhausser told Bankrate that while 10 percent is a low number, it gives some indication that people are willing to break through barriers and consider new frontiers.

Numerous banking industry pundits have noted that banks cannot avoid the presence of social media, particularly when it comes to customer retention. Extending this into the domain of social media banking may eventually become necessary across the board if customers are to feel as though they are being served effectively by their financial institution of choice.

Customer service is banks’ focus

Citi, Wells Fargo and Bank of America all noted that social media plays a significant role in customer service efforts. Citi resolved 36 percent of customer questions via social media, the highest figure in the Javelin study. Wells Fargo and Bank of America were far behind at 11 and 3 percent resolution, respectively.

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Consumers can mistweet

The Javelin study found something that any Twitter user knows: It’s easy to send tweets to the wrong Twitter handle. When sensitive banking data is being transmitted, that becomes a dangerous proposition. If unscrupulous users were to capitalize on claiming Twitter handles very close to those of bank service handles in order to trap unsuspecting customers’ banking data, the results could be disastrous.

For this reason – and for its relatively impersonal level of interaction – Schwanhausser believes that social media banking will never become the standard.

“Social media is not a replacement for call center or in-branch interaction. It’s an option. It’s not for all people now, and I don’t think it ever will be,” he said.

Can’t stop progress

Communication has been transformed by the World Wide Web. The rise of social media has only served to underscore this. Thus, it seems unlikely that platforms like Facebook and Twitter will ever disappear. Whether e social media and banking will become inseparably fused will likely require greater research into the safety implications.

Lloyd’s Bank social media strategy

Sources

Bankrate

Javelin Strategy & Research

Marketwatch: http http://bit.ly/zBhMfG

Social Media and Banking