Is Your Bank a Friend?

by Jay Deragon on 11/20/2011

Banks make money on our deposits, our transactions and lending us money. The economic models for banks are old and subsequently there is little differential from one bank to another. The customer experience is largely the same and yet bank after bank uses the tag line “relationship banking.” Bank relations do matter just like any organization selling products and services but the dynamics of relationships are changing and so must the banking industry. Think about the message in the above image I received via email from my local bank. Come on, I don’t want to be your friend, your fan or a follower. All I want is to use my money at the lowest possible cost.  It is ironic that we make money to use and we have to pay to use our own money. No friend would do that.

{ 1 comment }

Alex Bray November 20, 2011 at 3:08 pm

Your post is really interesting! I think you have captured exactly how many banking customers feel about their banks on social networking site.

Whilst I agree that people probably don’t want to be friends with their banks – I certainly think people will engage with financial services companies through social media – but only if there is something in it for them.

I’ll give an example – American Express. AmEx have 2.2m followers on facebook. They have used their facebook site to launch campaigns that have attracted followers – like their ‘Small Business Saturday’ and have then backed it up with an offer that gives customers something that they want. For example the ‘Link, Like, Love’ offer gives customers vouchers for the things they have liked via facebook.

I think AmEx are leaders in this field. If more financial institutions can get it right (putting transactions on facebook or Google+ for example) – I think we see more customers be willing to follow their providers.

Alex Bray (@StGilesResident on Twitter)

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