Social media presents big opportunities for banking

Comscore released their US 2010 online banking survey recently.

Most of it was what you’d expect to see year on year: credit cards use down, cash up, trust up, confidence up.

So all good then. Well, sort of.

What became immediately obvious is that there are a series of challenges for conversion from paper to online for things like paying bills.

– 29% of respondents indicated they still don’t trust online security
– 22% said they like having the paper as a reminder, and
– 21% bills were paid by someone else (so why would they?)

Reasons-for-not-banking-online

So, what to do? Thankfully the answer – at least part of it – on how to convert people online came from within the survey’s own respondents.

When asked why people would engage socially with a bank the answers became obvious immediately.

– 44% of respondents would, or do, engage socially for exclusive online retail promotions.
– 27% said, effectively, they’d do it just to learn how to manage their money better (14% for tips, 13% for financial advice), and
– 14% said they’d engage socially for promotions about opening new accounts

Reasons-for-engaging-socially-with-bank

So what’s the future for banking? Well, it seems like social media and social networking may be the future. Not only does it get you closer to your consumers but it affords opportunities to convert them to new accounts and online.

There may be brand risk in the future (2-5 years) regarding trying to constantly leapfrog themselves and their competitors for exclusive offers, but that’s in the future, the ‘now’ is nothing but big opportunity.

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