Apr. 17, 2012
| | Pdf |Print

Report: Social Media in Banking 2012

Font Plus Minus

Most Banks Struggle with Social Media

Banking

Only a select group of the world’s leading banks have finally grasped the opportunities of social media such as Facebook and Twitter to reach out to their customers. This is a main finding in our new analysis of the social media presences of the world’s top 50 banks. In the ranking Citibank comes out as winner with an outstanding 47 points out of a maximum of 50. Runners up are BBVA of Spain and the National Australia Bank with 44 points each, followed by Crédit Agricole and Deutsche Bank with 43 points. (see Top10-Ranking below)

According to our report, “Social Media in Banking 2012”, this small group of social media leaders in the banking sector have each managed to build an excellent social media presence reaching across all the important social networks and across global markets, and also including their own websites. A success built on an integrated global social media strategy, in most cases executed by a global team of social media specialists. Following behind this group of social media leaders are the social media discoverers. A group which includes about 40% of the analyzed banks and is defined by their offers of some basic elements of social media, for instance a Facebook presence or a Twitter stream to communicate with their customers and the general public. But these banks have failed so far to build an integrated and strategic approach to social media.

Although social media have been around for a number of years now, a disappointing third of the benchmarked global banking players still only attain half of the maximum points or even less. This substantial proportion of leading banks worldwide, labeled as social media laggards, miss out on leveraging the new opportunities provided by social media. They have mastered only the basics of social media, are not present on all social media and lack a social media strategy entirely.

We see a widening gulf between a handful of banks worldwide, leveraging social media extremely well to serve existing as well potential customers, and the majority of banks still struggling with the new platforms. These banks need to catch up fast or they will lose a new generation of clients.

The critical weaknesses that the MyPrivateBanking report identifies for more than two-thirds of the banks are:

  • The majority of banks evaluated are still lacking an integrated and strategic approach to social media. For instance, only 16 banks have meaningful content on all the analyzed leading social networks. 
  • In most cases, social media are not up-to-date. For instance, social media on bank websites are only in seven out of 50 cases fully up-to-date, defined as the latest content on each blog or videocast etc being no older than 1 week.
  • Facebook, as the most important social network, is still the weakest link for most banks. On average, banks reach only 60% of the total possible points for their Facebook presence in the MyPrivateBanking benchmark.

In order to catch up with the leaders in social media development, MyPrivateBanking recommends that the top management of every leading bank should be involved in determining the right strategy. Once a clearly defined strategy is in place, a dedicated social media team is needed to execute it, ensuring that the message the company wants to send is communicated in a effective way across all channels and markets. Our report makes clear that each bank must have a presence on Facebook, Twitter, LinkedIn, Youtube and Google Plus and that these presences require frequent updates with lively comments, videos, photos and other content to captivate the user. In addition, increasingly, users expect direct customer support through social networks like Facebook and Twitter, where they’re posting questions and complaints and expecting timely responses.

Our report makes clear that each bank must have a presence on Facebook, Twitter, LinkedIn, Youtube and Google Plus and that these presences require frequent updates with lively comments, videos, photos and other content to captivate the user. In addition, increasingly, users expect direct customer support through social networks like Facebook and Twitter, where they’re posting questions and complaints and expecting timely responses. 

Taken as a whole, the analysis in the new report demonstrates a clear overall improvement in social media use by banks compared to the results of previous MyPrivateBanking surveys, but still a lot remains to be done. For the vast majority of banks, room for improvement is still extensive and the quality of online presences fails to match the importance of social media as a communication tool by a wide margin. The good news for banks is that, in social media, changes requiring relatively little effort can achieve big improvements. 
                       

Top
 10 Banks with the best social media presences (overall 50 banks ranked):
 

Rank

Bank

Total Points (max. 50)

1

CITI Bank

47

2

Banco Bilbao (BBVA)

44

2

National Australia Bank

44

 

Credit Agricole

43


Deutsche Bank

43


ING Bank

42


Rabobank Group

42


Standard Chartered

42


Wells Fargo

42


BNP Paribas

41

 

Average Points 
(all 50 banks)

30

 

 

About the report: 
This report “Social Media for Banking” analyses in detail the strengths and weaknesses of the social media presences targetting to customers of the 50 largest banks worldwide. In total almost 250 social media presences were evaluated along 33 criteria; for each bank the quality of the content and functionality as well as the integration with the website is rated. For further information on the report please check here.

Banks Analysed: 

ABN AMRO Danske Bank Group Nordea
ANZ Bank DBS Bank Pictet
Banco Bilbao V.A. Deutsche Bank PNC Financial Services 
Bank of America Erste Bank/Sparkasse Österreich Rabobank Group
Bank of China Goldman Sachs Royal Bank of Canada
Bank of Montreal HSBC Royal Bank of Scotland
Barclays ICICI Santander
BB&T ING Bank SEB Bank
BNP Paribas Intesa Sanpaolo Société Générale
BNY Mellon Itaú Bank Standard Chartered
Bradesco J.P. Morgan Suntrust
Caisse d`Epargne Julius Bär Toronto Dominion
CIBC Lloyds Banking Group UBS
CITI Bank Merrill Lynch Unicredit
Coutts Private Bank Mitsubishi UFJ  US Bank
Crédit Agricole Morgan Stanley Wells Fargo
Credit Suisse National Australia Bank  

 

Related Articles and Research

My Private Banking



Report: Social Media in Banking 2012

Most Banks Struggle with Social Media

  Apr. 17, 2012

Banking

Only a select group of the world’s leading banks have finally grasped the opportunities of social media such as Facebook and Twitter to reach out to their customers. This is a main finding in our new analysis of the social media presences of the world’s top 50 banks. In the ranking Citibank comes out as winner with an outstanding 47 points out of a maximum of 50. Runners up are BBVA of Spain and the National Australia Bank with 44 points each, followed by Crédit Agricole and Deutsche Bank with 43 points. (see Top10-Ranking below)

According to our report, “Social Media in Banking 2012”, this small group of social media leaders in the banking sector have each managed to build an excellent social media presence reaching across all the important social networks and across global markets, and also including their own websites. A success built on an integrated global social media strategy, in most cases executed by a global team of social media specialists. Following behind this group of social media leaders are the social media discoverers. A group which includes about 40% of the analyzed banks and is defined by their offers of some basic elements of social media, for instance a Facebook presence or a Twitter stream to communicate with their customers and the general public. But these banks have failed so far to build an integrated and strategic approach to social media.

Although social media have been around for a number of years now, a disappointing third of the benchmarked global banking players still only attain half of the maximum points or even less. This substantial proportion of leading banks worldwide, labeled as social media laggards, miss out on leveraging the new opportunities provided by social media. They have mastered only the basics of social media, are not present on all social media and lack a social media strategy entirely.

We see a widening gulf between a handful of banks worldwide, leveraging social media extremely well to serve existing as well potential customers, and the majority of banks still struggling with the new platforms. These banks need to catch up fast or they will lose a new generation of clients.

The critical weaknesses that the MyPrivateBanking report identifies for more than two-thirds of the banks are:

  • The majority of banks evaluated are still lacking an integrated and strategic approach to social media. For instance, only 16 banks have meaningful content on all the analyzed leading social networks. 
  • In most cases, social media are not up-to-date. For instance, social media on bank websites are only in seven out of 50 cases fully up-to-date, defined as the latest content on each blog or videocast etc being no older than 1 week.
  • Facebook, as the most important social network, is still the weakest link for most banks. On average, banks reach only 60% of the total possible points for their Facebook presence in the MyPrivateBanking benchmark.

In order to catch up with the leaders in social media development, MyPrivateBanking recommends that the top management of every leading bank should be involved in determining the right strategy. Once a clearly defined strategy is in place, a dedicated social media team is needed to execute it, ensuring that the message the company wants to send is communicated in a effective way across all channels and markets. Our report makes clear that each bank must have a presence on Facebook, Twitter, LinkedIn, Youtube and Google Plus and that these presences require frequent updates with lively comments, videos, photos and other content to captivate the user. In addition, increasingly, users expect direct customer support through social networks like Facebook and Twitter, where they’re posting questions and complaints and expecting timely responses.

Our report makes clear that each bank must have a presence on Facebook, Twitter, LinkedIn, Youtube and Google Plus and that these presences require frequent updates with lively comments, videos, photos and other content to captivate the user. In addition, increasingly, users expect direct customer support through social networks like Facebook and Twitter, where they’re posting questions and complaints and expecting timely responses. 

Taken as a whole, the analysis in the new report demonstrates a clear overall improvement in social media use by banks compared to the results of previous MyPrivateBanking surveys, but still a lot remains to be done. For the vast majority of banks, room for improvement is still extensive and the quality of online presences fails to match the importance of social media as a communication tool by a wide margin. The good news for banks is that, in social media, changes requiring relatively little effort can achieve big improvements. 
                       

Top
 10 Banks with the best social media presences (overall 50 banks ranked):
 

Rank

Bank

Total Points (max. 50)

1

CITI Bank

47

2

Banco Bilbao (BBVA)

44

2

National Australia Bank

44

 

Credit Agricole

43


Deutsche Bank

43


ING Bank

42


Rabobank Group

42


Standard Chartered

42


Wells Fargo

42


BNP Paribas

41

 

Average Points 
(all 50 banks)

30

 

 

About the report: 
This report “Social Media for Banking” analyses in detail the strengths and weaknesses of the social media presences targetting to customers of the 50 largest banks worldwide. In total almost 250 social media presences were evaluated along 33 criteria; for each bank the quality of the content and functionality as well as the integration with the website is rated. For further information on the report please check here.

Banks Analysed: 

ABN AMRO Danske Bank Group Nordea
ANZ Bank DBS Bank Pictet
Banco Bilbao V.A. Deutsche Bank PNC Financial Services 
Bank of America Erste Bank/Sparkasse Österreich Rabobank Group
Bank of China Goldman Sachs Royal Bank of Canada
Bank of Montreal HSBC Royal Bank of Scotland
Barclays ICICI Santander
BB&T ING Bank SEB Bank
BNP Paribas Intesa Sanpaolo Société Générale
BNY Mellon Itaú Bank Standard Chartered
Bradesco J.P. Morgan Suntrust
Caisse d`Epargne Julius Bär Toronto Dominion
CIBC Lloyds Banking Group UBS
CITI Bank Merrill Lynch Unicredit
Coutts Private Bank Mitsubishi UFJ  US Bank
Crédit Agricole Morgan Stanley Wells Fargo
Credit Suisse National Australia Bank