By Nancy Feig
Bank Systems & Technology
November 01, 2007
http://www.banktech.com/news/showArticle.jhtml?articleID=202801088
With the advance in social networking technology, banks are looking at their strategies to create competitive advantages in social networking, which shapes about 72% of active teens using social networking. Banks are going to introduce Web 2.0, which is the second generation for World Wide Web, including: Myspace, Gmail, Facebok, etc. The banks that are leading the way: Well Fargo, RBC, and The Toronto-Dominion Bank.
In this article it stresses out the importance and the rapid speed of technology in social networking. Banks are realizing how different the new generation is communicating, and they have to find a strategy to meet their needs. For example: Well Fargo realized that people are more approached through social media, with them studying into that they came up with a blog; with more experiment that choice topics like: “student LoanDown,” and Stagecoach Island blog. In the other hand, RBC, other than using blogs, they also engaged in facebook, and podcasts. They also came up with RBC p2p, which is for student, and it is also done by students. They would learn more about budgeting and saving, or anything they are interested in.
With this increase in the use of Internet and high tech the article also states that this new generation has little or no association with financial institutions, and having more potential. I found it very interesting how banks are getting to the new generation, and never realized that the use of social networking when that far too fast. It also seemed that they are assembling social networking a priority to the new generation of customers. Apparently, social media is the new strategy to maintain customers.
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4 comments:
Sometimes the buzz and spin around a new technology makes its success feel like a self fulfilling profecy- what do you think about this. Do you want to socially network with your bank? Why or why not?!?
Interesting article Rawan. I don't think I would want to socially interact with my bank I prefer to do business with them and that all. The idea of sharing banking insights with other people seems like a good a idea but how do you know if the information they are sharing with you is accurate?
I don't feel like I need to social network with my bank. I'd be more interested in knowing there are a convenient number of ATMs nearby or I'm receiving competitive rates on my accounts. Maybe that is just because I am very conscious of my finances. There are other, more free-wheeling people who could overlook this lack of (primary) service and be swayed by these types of added features. The one thing I like that the articled mentioned though was the forum of online discussions on finance. Of course you must be critical of the sources you're receving information from, but I think anything that gets young people thinking about their financial future is generally positive.
Overall, banks adopting these types of features is just a reflection of general consumer trends. People no longer go to a butcher's shop for meat and then a bakery for bread. They want everything from one source all at once. For instance, does anyone remember cell phones that ONLY made and received phone calls? Banks know that they need to have a wide range of appeal to stay relevant to the next generation of customers.
This is interesting article. As, keith pointed out, I really think that banks know that they need to have a wide range of appeal to stay relevant to the next generation of customers. But for me, I don't feel I want my bank tobe socially interacted.
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