Christophe Langlois, Founder Visible-Banking.com

October 2008

Social Media: The Inconvenient Truth

Top blog dedicated to Banking 2.0 Subscribe to www.Visible-Banking.com Become a fan of the Visible Banking Page on

Facebook

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Interview 2.0 on Visible-Banking.com

Source: www.Visible-Banking.com (Sep. 2008)

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Banking 2.0: Changing People’s Life

Source: Kiva.org – loans funded, women entrepreneurs in Ivory Coast (Sep. 2008)

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The HSBC case on Facebook (June 07)

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Web 2.0 – Definition(s)

“Online applications, platforms and media which aim to facilitate interaction, collaboration and the sharing of content” Source: Universal McCann, Social Media Tracker Wave.3 (March 2008)

Web 2.0 attitude

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SOCIAL MEDIAWEB 2.0 - UGC

Banking 2.0: technologies & trends

RSS

P-to-PLending

PFM

Podcasts

Photo/ VideoSharing

Widgets

MicroBlogging

CustomerReviews

BloggingSocial

Networking

Inspired by the McCann Social Media Tracker Wave .3

VirtualWorlds

PredictiveMarkets

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From the Research Firms

“26% of search results link to user-generated content.”Nielsen BuzzMetrics

“More Americans will turn to online person-to-person (P2P) social lending networks to pay off credit card debt, with the amount borrowed for this purpose expected to grow from $38 billion in 2007 to $159 billion by 2012.”Javelin Research & Strategy, December 07

“By 2010, social-banking platforms will have captured 10% of the available market for retail lending and financial planning.” Gartner, February 08

“Enterprise spending on Web 2.0 technologies will grow strongly over the next five years, reaching $4.6 billion globally by 2013.“Forrester, April 08

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Shall we embrace social media?... Credit crunch Limited trust New customer expectations The power has shifted Limited IT & Marketing Budget Transformation programmes and

iconic projects Strategy - Towards Customer

Advocacy

… where shall we start?

Transparency

Showwe have a soul

CustomerAdvocacy

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Banking.com

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Web 2.0: Opportunity Assessment Matrix

H

L

L

Time-To-Market

Cu

sto

me

r A

dv

oc

ac

y

H

Low1. Online reputation monitoring2. Photo & Video Sharing3. Podcasts4. RSS

Medium5. Blogging6. Micro Blogging 7. Social Networking (participating)

High8. Virtual Worlds 9. Social Networking (own) 10. Widgets11. Customer Reviews12. PFM Tool

ROI

HighMedLow

Projects by complexity

51

2 3

4

6

7

8

10

119

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Banking.com

10

Web 2.0: Opportunity Assessment Matrix

H

L

L

Time-To-Market

Cu

sto

me

r A

dv

oc

ac

y

H

Low1. Online reputation monitoring2. Photo & Video Sharing3. Podcasts4. RSS

Medium5. Blogging6. Micro Blogging 7. Social Networking (participating)

High8. Virtual Worlds 9. Social Networking (own) 10. Widgets11. Customer Reviews12. PFM Tool

ROI

HighMedLow

Projects by complexity

51

6

7

8

12

119

2 3

4 www.Visible-

Banking.com

10 “good” reasons against social media1. We have already tried!2. UGC is too risky3. No clear ROI4. Limited Marketing budget, limited resources5. Only good for small FIs and direct banks6. The mighty Press Office and L&C departments7. Personal branding: risk of loosing our best people8. Our new online channel will deliver everything...9. Intranet 2.0: confidential documents made visible10. Focus on the basics: single view of the customer...

Source: www.Visible-Banking.com (August 2008)

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ROI: online reputation, natural search Aligned to your strategy

ROI measured against Engagement KPIs Ambassador for the sector, most recommended bank

Revenue Generation & Cost Savings SEO – Improve natural search, drive PPC costs down Increase online sales – Lead generation - Targeted advertising

Marketing & Customer Advocacy Increase proportion of Good vs bad comments, real time market data Optimize press releases, marketing campaigns, create & sustain WOM Increase your reach and create dialog with the influencers

Brand recognition Counter attack brand jacking & help deal with brand dilution Increase share of voice online: becoming a leader in those

conversations

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Recommendations

Listen Monitor online reputation,

risk of brand dilution, and lack of ownership

Create company pages on major social media sites Avoid brand jacking, go local,

employees/champions

Start where it makes sense Blog, presence on leading social networks…

Do it right: be honest & transparent Drive recruitment, engage, REWARD

Manage expectations – Set up realistic targets Traffic, Member base, RSS Feed readers,

Comments, Content produced, blog posts

Negative comments: from 75% to 22%

?

Source: www.YouTube.com (Sep 2008)

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The Key to Success: Reward People

Successful Social Media initiatives, Buzz & WOM

Fun / Experience VisibilityExclusive Content Contest / Prizes

Active Communities

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Personal Finance Management 2.0

Banks

“It's nice to see a bank who's at least thinking about people in their 20s. That said, it's just so far from complete.On Mint, we see that 55% of our users have student loans. 95% have accounts with other institutions. Until banks provide an elegant system for pulling all your information together in one place, accurately showing your spending and cashflows so that

you budget and save, and show you (objectively) ways you can save money, I'm not too worried.”Aaron Patzer, Founder & CEO, Mint.com

Source: www.netbanker.com (July 2008)

Startups / Communities / Vendors

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Blogging: North America leads the way

02/2008, 1, 22

12/2004, 14, 23703/2006

09/2006

11/2006

07/2006, 2, -07/2006, 2, -

08/2007, -, -

http://www.opensourcecu.com/pages/blogroll

08/2006

2007

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Social Networking: focus on SME Market

Q4/2007

04/200802/2007

08/2008

01/2008 – 08/2008

200810/2007

05/2008

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Being an Ambassador for the sector Young & Free Alberta, Common Wealth CU (Canada)

“The Young & Free Initiative is a platform designed to help define freedom for Northern Albertan youth and provides fun and educational resources to help and challenge young people to move towards that freedom.”

Change Everything, Vancity (Canada) “If you want to make changes - in your own life, in your neighbourhood or in

your world - then Change Everything is the site for you. It's fun, it's free and it's a great way to work towards positive change for you and our community.”

Small Business Online Community, Bank of America (US) “Our goal is to partner with small business owners across the country to

help them achieve their dreams of owning and operating a successful business.”

Join2Grow, Fortis Bank (Belgium) “The site provides a platform where entrepreneurs can interact and

exchange ideas with others who share similar life-goals, ambitions, and dreams. It is also a place of opportunity, where entrepreneurs can discover and make contact with potential partners and collaborators throughout Europe.”

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The potential for Customer Reviews

Source: db research (June 2008) Source: eMarketer (June 2008)

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Bank of America: Customer Reviews

Source: www.bankofamerica.com/reviews (Sep 08)

09/2007

10/2007

08/2007

06/2008

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The widget economy is real

– 23% of social network users have installed an application

– 18% of bloggers have installed applications in their blog templates Source: McCann, Social Media Tracker Wave .3

Source: http://www.betteronlinebanking.com/ (Sep 2008)Source: www.fidelity.com(Sep 2008)

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Advanta: Ideablob

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Kiva.org: 1st P-to-P microlending website Launched in October 2005 Goal: facilitate loans totalling $100m in 2010

“If you look at Kiva.org, people with a very modest amount of money can make a huge positive impact all around the world. There are so many people who want to give but don't really know how to do it.”

President Bill ClintonSource: Kiva.org (Sep 2008)

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Advanta partners Kiva.org

Launched in April 2008 Benefits: contribute to making the world a better

place, online buzz, reputation, customer acquisition

Source: www.kivab4b.org (September 2008)

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Advanta: the King of WOM

Facebook: 27 groups (out of 36) From 4 to 848 members (24/09/08)

With an average of 95 members Presence on MySpace, flickr, YouTube Offline events

01/2008, 8, 96

-, 97

05/2008, 165, 2www.Visible-

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Advanta: Promote Your Initiatives

Source: www.advanta.com (September 2008)

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Advanta’s BizEquity: Custom Valuations Founded & launched in 2008 to empower small business

owners with tools and information to help determine the estimated value of their businesses.

Source: www.bizequity.com (September 2008)

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PR 2.0: the death of the Wire

Source: http://www.techcu.com/resources/contactus.htm (21/09/08)

Source: twitter (21/09/08)

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The banking industry is (almost) ready Today

A few banks are experimenting Social Media professionals

VP Social Media, Director of Social Media,Social Media Manager

Head of 3D Experience SVP Experiential Marketing Director, Online Banking & Engagement Web 2.0 Strategist

Tomorrow (wish list) The CEO, one of the social media

champions Own blog Talk to our CEO, Mon-Fri between 12pm-

4pm Dedicated Social Media Teams

Marc Hedlundco-Founder & CEO, Wesabe

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The Future of Online Finance

Source: coverage of FinovateStartup on www.Visible-Banking.com (April 2008)

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Q&A - Thank you for listening

I invite you to: Send me your questions to cm_langlois@yahoo.co.uk Comment my next post on “Retail Banking Innovations” Connect on Linkedin & Subscribe to www.Visible-Banking.com