Why 2012 Banking Needs Social Media

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While its no secret that the general population has a strong sense of mistrust towards banks, whats even more surprising is how little banks are doing to win them over. After all, no one will just walk in with their hard earned savings if rumors suggest your bank is saturated with thieves or annoyances. I’ve decided to make this one short and lay out my idea’s for how banks can improve their likability and service value, on both retail and corporate levels.

To remain relevant and worthy in the market, banks have got to start being more business savvy, client centric and efficient in their operations. Client focus can be increased by improving risk management strategies, optimize channel performance, bring innovation to pricing strategies and foster client satisfaction by investing in some quality insight tracking methods, notably social media can do wonders (and is cheaper).

The singular goal of all banks is to eliminate complexity and reduce costs; to do this and simultaneously deal with differences in market conditions, (which require strategy refreshes every 2-3 years), they will have to tap into their clients top communication mediums – social media – to mine critical data that can sustain or grow them. One way identified by Burj Bank’s Facebook page (managed by TNBT) directed attention towards diversifying income sources while costs were maintained. The analytics gained from social media are accurate and disperse across a host of demographic profiling allowing delivery of superior products & services that best meet client needs.

Sahlique Sultan is Managing Partner of N'eco's Natural Store & Cafe and holds a masters degree in sustainable business management from the American University of Paris.