Banks Lag in Social Media, But it Could Prove Advantageous

Banks and credit card companies are connected to a paltry 9 percent of the social media population, according to research report published by the New York-based Auriemma Consulting Group.

The research from the management consulting firm further states that 44 percent of social media users follow at elates one brand that is not a bank or credit card company. However, the firm says this could actually be advantageous to them: As the model for social media migrates to mobile there are opportunities for banks and credit card companies to engage consumers in a completely new way, the firm said.

For example, Auriemma's research research found that the primary expectation from those already following banks and credit card companies via social media was the availability of "news/tips," which was cited by 60 percent of bank and credit card company followers. This was followed by "offers" and "instant communications from the organization" each mentioned by 49 percent of followers.

Patricia Sahm, Managing Director at ACG, stated that consumers, particularly younger ones, are seeking assistance in managing their finances; an area where banks have much to offer consumers. However, she added that it may require banks to look at how they are engaging consumers outside of the traditional direct mail, branch, or customer service channels to also include social media.

Sahm further stated that a bank or credit card company that offers valuable tips to consumers via social media could potentially win a tremendous word-of-mouth advantage over rivals who are not active in these channels.

[Related: Banks Can’t Afford to Be Afraid of Social Media ]

Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as a municipal and courts reporter for daily newspapers in upstate New York, Bryan has ... View Full Bio