Facebook Users Want Web 2.0-enabled Banks

I've been pretty skeptical about the use of Web 2.0 tools in the financial services space. I just can't see how banks can broadly implement things like wikis, blogs and podcasts throughout their practice just to cater to a particular demographic-Gen Y. Nor can I see why they would want to embark on such a project beyond simple curiosity.Then I saw this study of 1,000 Facebook users, issued by Web 2.0 technology provider WorkLight. It says that people between the ages of 18 and 34 desire to interact with their financial institution in a Web 2.0 fashion. Specifically, 48 percent of respondents said they would take advantage of online banking with Web 2.0 gadgets if their banks offered this service. In the 25 to 34 year-old bracket, 33 percent said they would be more likely to switch to another bank that offered Web 2.0 gadgets for online banking, versus 21 percent for 18 to 24 year olds.

But tastes change with age, even in financial services. I seem to recall seeing a piece of research that said that the usage of credit cards versus debit cards varies with the age of the user (I think younger people prefer their debit cards, if I remember correctly). And what about the branch? It's quite fine to look at these 20-something people and say that they love to use the web and mobile channels now. But what happens when they're much older? I see in my older relatives what happens as the eyes goes, as the hearing becomes more muddled and, unfortunately, as confidence starts to wane. Will these same wired Gen Y-ers still wish to engage with their bank using only these online, self-service channels when they're into their golden years? Perhaps, like generations before them, they'll find it comforting to walk into the local branch and talk to a human being.

Then again, this is a completely different generation from my parents who grew up during World War II. My generation walked on the first stepping-stones of the Internet, not to mention the explosion in video game consoles witnessed during the 80s. The generation after mine has grown up knowing nothing BUT digital this and online that. They probably don't even know that there were once rotary telephones not long ago! Boy, I feel old.

And age aside, why do these people feel that they should be able to engage their bank in the same manner as their friends, retailers and entertainment outlets such as TV stations? Perhaps this is worth more analysis. I can see some merit to things like blogs when it comes to offering financial advice. I'm sure this goes on today at some of the more progressive financial institutions. But still, is embarking on a Web 2.0 strategy worth the effort at this point in time? And who knows what awaits us a decade from now? Perhaps we'll be able to have neural shunts implanted into the base of our skulls allowing us to directly plug into the communications network. OK. Maybe I read too much sci-fi, but it is possible. Still, it's fun to think about decades from now whether that 75-year-old with the neural jack in his head will prefer to "plug in" to his bank or to walk into his branch to perform a transaction.