Adoption of Technology
• Banking is slow to adopt technology:– New is usually bad– Clients aren’t using it– Too Risky
Just too scary!
INTERNET BANKINGUsage - Americans adopted online investment
services before online banking, exactly the opposite of Europeans.
Risk - Most banks opted for litigation over adoption of internet banking.
Strategy - Huge problem for banks, internet payments gave credit card companies a big weapon against banks.
• Reputation Risk• Regulatory/Compliance Risk• Negates the shroud of ambiguity that
surrounds financial services
Social Media
Social Media (aka “Bob”)
Bank Reaction to Social
• Very few banks have adopted social media• Social media can adversely affect brand and
reputation. – The number of consumer-driven anti-Bank of
America blogs, for example, is a public relations disaster.
• Abdicating authority to others• Industry publication American Banker doesn’t use social
Bob and a banker
Wells is using social for:
• Client service• Marketing
– Banking best practices– Product knowledge – Lifestyle/Life-stage information
References • Deragon J. (December 18, 2009). How “Social” is Your Bank? Social Media Today retrieved November 1,
2010 from: http://www.socialmediatoday.com/jderagon/110884/how-%E2%80%9Csocial%E2%80%9D-your-bank
• Social Media and the Banking Industry. Social Media Today retrieved November 12, 2010 from: http://www.socialmediatoday.com/ClientFiles/2b461d74-0b05-4149-a6fd-33257181a2c7/SMbanking_v1.pdf
• (November 3, 2010 ) Why Social Media Is a Waste of Time for Most Banks & Credit Unions. Financial Brand.com retrieved November 12, 2010 from: http://thefinancialbrand.com/
• http://blog.wellsfargo.com/ retrieved November 2, 2010
• http://www.openforum.com/ retrieved November 2, 2010
• Sherwood, Catherine (March 18, 2010). Financial Services & Social Media
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