Jaime Punishill spearheads Citi’s social media efforts. He will be part of a panel that I am moderating at Celent Innovation & Insight Day on May 13th. The importance of security and social media will be part of our discussion. I invite you all to come out to the event and learn more.
- Banks need to monitor for new anti-bank Twitter Users. More anti-bank users will pop up and their follower base will grow. It is important for banks to manage their brand and make sure their company name is being used appropriately. Banks also need to watch for username squatters who will try to social engineer credentials from unsuspecting customers (see my post, Social Networks Are Not Secure!)
- Banks should reach out to followers of anti-bank Twitter users. It’s one thing to be proactive when dealing with a customer who approaches you on Twitter, it’s another to go after those who are expressing and publicizing their problems. Banks need to reach out to these people and solve their issues before they draw too much negative attention to themselves or get into a “United Breaks Guitars” situation.
It’s impossible to make everyone happy, but if a bank has established a Twitter presence they need to understand and react to these types of situations.
- SmartyPig takes advantage of social media. The firm makes excellent use of Twitter, Facebook, Vimeo, etc. to get the word out, provide demos, keep in contact with customers, and recruit new ones. They run frequent contests on Twitter, and maintain a blog that discusses issues related to saving. CEO Mike Ferrari was profiled recently in a BusinessWeek article on CEOs Who Use Twitter.
- SmartyPig facilitates social banking. One of the most interesting aspects of SmartyPig is the ability to publicize your savings goal. If I am saving (for example) for an LCD TV, I can invite my friends and family (by email) to contribute to my goal. Users can also place a SmartyPig widgets on their Facebook or Myspace page as part of this process.
SmartyPig’s approach is interesting and different. NetBanker recently reported that deposits in the US have reached $100 million. This is an impressive feat, and is no doubt due in part to the attractive interest rate offered by SmartyPig (currently 2.75%).Banks have a lot to learn when it comes to social media and banking. SmartyPig is a great example of a non-bank in the financial services space that has integrated social media into it’s day-to-day business. I am currently working on a new report on social media in banking. Stay tuned for additional details.
- Vendor solutions. Should I stick with my current vendor or switch to a new provider? Who has the best solution out there? This is not a simple question to answer, and one that requires plenty of investigation. Celent has recently evaluated the vendors of retail online banking solutions (see the following report). Banks have been approaching us for custom evaluations where we plug in their specific requirements. I enjoy these projects as they always produce different results and I get to meet a lot of interesting and knowledgeable people.
- Web 2.0 Rich Internet Applications. Banks are trying to sift through the hype. They want to build Rich Internet Applications (RIA) but are having a hard time defining the business case. It’s a slow-moving process, but banks are recognizing the shift and the need to remain competitive. Non-banks are leading the Web 2.0 charge and banks are realizing that they are playing catch-up when it comes to customer experience.
- PFM. I have blogged about this extensively. Banks know they need to jump on the PFM bandwagon. Should they build a solution, buy pieces, outsource the entire thing? They also want to know how to integrate PFM properly into online banking. Lots of questions here.
- Social Media. Twitter is the talk of the town. I am receiving a ton of inquiries about how banks can leverage Twitter and other forms of social media. Banks also want to know how to integrate this into online banking and customer support.