How Banks Are Using Social Media

More and more banks social media use has drawn attention. A surprise to most, the attention is often positive. The current economic climate has forced banks to do some housekeeping and improve their image as well as find new outlets for promoting their products. By being in touch with popular social media tools banks are rapidly finding that social media culture can offer them positive rewards. It is in small or community banks where this change has taken place and they are the ones leading the charge towards social media as a banking tool for larger banks.

Some in the United States have done an excellent job of merging banks, social media, and customers to create an exciting community. The banks have learned what these communities can do to improve their business as well as their perception in the neighborhood.

US banks social media use:

Twitter has a lot of followers and users. You might not realize that some banks social media outlet is the same one that pop and sports stars use to vent about their favorite pizza or movie.  United States banks, Wachovia and Bank of America have Twitter accounts they use to assist customers. The biggest problem with these sites is the issue of sensitive information and privacy associated with banking. However, once the managers of these accounts establish that they are the real bank and can assist with real issues. Through trial and error these banks are finding that social media is a great way to keep lines of communication about specific products open with their customers.

Marketing through social media has also been a boon to many banks. Especially for small banks that do not have the budget to compete with large banks and big media advertisements. A recent Mashable article discusses a case where a community bank called Nicolet National Bank produces blogs and podcasts on a community hub. This allows their customers to have complex banking issues explained quickly and easily on their own time.

Facebook is also used as banks social media prowess grows. Several banks use the popular social networking site to promote products or release information about charity campaigns. There was some concern that negative posts would be an issue but they were quickly outweighed by the ability to respond to anything negative quickly and effectively. First National Bank of Omaha even combined the use of Facebook, Twitter, MySpace, YouTube, iTunes, and blogs to spread information about a marketing campaign aimed at aiding their customers in creating personal savings plans.

Maybe one of the most important aspects of banks social media use is the ability to add transparency to their business. Many people have lost trust in banks for good reasons. By using social media they open themselves up to criticism and to their ability to be seen as helpful partners in their customers eyes. This change in banks harkens back to a time when your neighborhood bank was a friend rather then just another risky associate.