Most Banks and Wealth Managers Ignore Facebook, Twitter & Co.
Nov. 04, 2010
The social media presence of Deutsche Bank, Crédit Agricole and BNP Paribas come out as winners in a ranking of the social media activities of the world's top 30 Wealth Managers. In the survey conducted by MyPrivateBanking Research, Deutsche Bank ranks first, with a total score of 38 out of possible 50 points. In particular, Deutsche Bank scores well with its Facebook, LinkedIn and Twitter activities. Crédit Agricole and BNP Paribas score lower overall in these networks, but have strengths in their Youtube and mobile application offerings.
Social media presence of the 30 biggest Wealth Managers leaves a lot to be desired
Overall, the MyPrivateBanking report entitled "Wealth Management and Social Media" comes to the conclusion that the social media presence of the 30 biggest Wealth Managers leaves a lot to be desired. What emerges from the report’s findings is that the Wealth Managers can be divided in three groups. Just a small group of four banks (Deutsche Bank, Crédit Agricole, BNP Paribas and Credit Suisse) that at least have a consistent and comprehensive strategic approach toward social media. Another group of only six Wealth Managers use bits and pieces of the social media framework to get in touch and start conversations with clients and users. But an alarming proportion of leading Wealth Managers, two thirds in all, either have no presence whatsoever or only engage in sporadic activities on social media networks. Surprisingly, no US-based bank has made it into the Top10 of the ranking.
Despite the startling growth of social media usage around the globe, the majority of leading banks and wealth managers have failed to discover the potential of social media and act on it. It is particularly disappointing that 19 of these 30 Wealth Managers have no official Facebook presence targeted towards their customers. Analysis of the social media offering aimed specifically at wealth management clients shows an even bleaker picture. Even those banks with the best social media strategies have little or no activities targeted towards one of their most attractive client groups.
The offerings of social media applications on the banks’ own websites and mobile applications also leave a lot of room for improvement. Only 40% of the Wealth Managers use some type of social media (e.g. blogs, podcast or videocasts, social bookmarking etc.) on their own websites. Just 50% of banks have one or more mobile apps for general use – none offers a mobile app specific to wealth management clients. MyPrivateBanking recommends to banks and wealth managers to take more interest in social media and not to regard it as playground for juveniles. The Wealth Managers urgently need a strategy for defining their presence in this interactive phase in the development of the Internet.
Leadership of every Wealth Manager and bank must open up to social media
As first steps MyPrivateBanking Research recommends three important measures every bank and Wealth Manager needs to take today: first, the leadership of every bank must open up to social media and decide exactly how the firm should position itself in the various social media. Secondly, every Wealth Manager should be present and active in Facebook, LinkedIn, Twitter, Youtube and Flickr. This measure alone would give banks access to close to 1 billion individuals at very low cost. However, setting-up a presence is only an initial step. The third requirement is that every social media presence must be kept vital and attractive by continuously adding relevant content. Maintaining such a standard is mandatory, as are quick responses to postings and feedback.