Demystifying Social Media and Next-Generation Online Banking

by Jacob Jegher, November 3, 2009
Industry Trends
Global, Asia-Pacific, EMEA, Latin America, North America

Abstract

Many banks are still choosing to ignore social media; others are dabbling in it; and a few are going full force. Whether banks like it or not, social media is part of the online world and must be addressed.

The online world is constantly buzzing with new trends and activities. Among these are online communities, blogs, Facebook, Twitter, and other flavors of the day. Interacting with the dizzying array of options is a challenge—one that many consumers embrace, but banks struggle with.

Social media activities need to be blended into a bank's day-to-day activities and customer relationships. They also need to be integrated into online banking and a bank’s website presence. In this report, Demystifying Social Media and Next-Generation Online Banking, Celent examines and analyzes the state of social media and its impact on online banking.

"The days of pushing data and information out to the consumer are over,” says Jacob Jegher, senior analyst with Celent's Banking Group and author of the report. "It's now a two-way street, and banks should capitalize on the stream of data, information, and interactivity that is headed their way."

The report begins by delving into the opportunities presented by Facebook and Twitter. It then explores other avenues including blogs, online communities, interactive training, and social banking. Finally, the report presents a case study on SmartyPig, a firm that has blended social media with next-generation online 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 subsidiary 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

3

Banks Lag the Online Landscape

5

Banks Need to Jump on the Social Media Bandwagon

7

Social Media Extends Beyond Twitter and Facebook

19

Social Banking Is Emerging

21

SmartyPig: Driving Innovation Via Social Banking

23

Conclusion

34

Sign in to download reports and access personalized information