Banking on Facebook: An Overview of Banks with Transactional Facebook Apps

by Jacob Jegher,  Stephen Greer, June 25, 2014
Industry Trends
Global

Abstract

While Facebook can be a medium for customer support and marketing, only recently have banks started to explore the possibility of using the platform for banking transactions. Most financial institutions aren’t sold on the idea, but a small number of banks, scattered across the globe, have developed Facebook banking apps and have a willingness to experiment.

In Banking on Facebook: An Overview of Banks with Transactional Facebook Apps, Celent profiles eight banks, digging deeper into their social media initiatives. How have they used social media? What are the challenges?

The goal of this report is to illustrate what can be done with social media, and to demonstrate that it’s important to experiment even if certain projects don’t end up bearing fruit. Although Celent is bearish when it comes to Facebook transactional banking, a social media presence is no longer a “nice to have.”

Financial institutions with Facebook banking are banks that consistently and overtly make social media a priority. They prove to have a keen understanding of social networks, often developing well defined and effective strategies. Most banks, however, will do well to watch and learn from them, rather than emulate them.

“Banks all over the globe are coming up with ways to actively engage users,” says Jacob Jegher, Research Director with Celent’s Banking Group and coauthor of the report. “Yet the question remains: are these responses to user demand, or bank-driven campaigns to squeeze value out of social media’s popularity?”

“It’s hardly a stretch to say that mobile and social have disrupted how consumers engage with others and consume content,” adds Stephen Greer, Analyst with Celent’s Banking Group and coauthor of the report. “There has been some social activity in the banking space, primarily focused on services and marketing, but only recently have banks begin to experiment with what social can mean to their business.”

This report examines the latest trends in social media through the lens of Facebook banking. The report first looks at how banks have used social media and the challenges of getting the channel right. Then Celent profiles Facebook apps banks have deployed. Finally, the report gives recommendations for banks looking to engage more actively in social media or Facebook banking.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Social Media: A Slowly Maturing Landscape

3

Bank Profiles

8

 

ASB Bank

8

 

DenizBank

11

 

First National Bank

13

 

GTBank Nigeria

15

 

CSDs/iCSDs

17

 

ICICI Bank

19

 

La Caixa

21

 

Tangerine (Formerly ING Direct Canada)

23

Recommendations for Banks

25

Leveraging Celent’s Expertise

29

 

Support for Financial Institutions

29

 

Support for Vendors

29

Related Celent Research

30

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