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Social Media In Banking: Slow And Cautious

FIS conducted research in September with some of their clients, roughly half of them financial institutions with less than $1 billion in assets and half with more than $1 billion in assets. The infographic below underscores that financial institutions, especially smaller ones, are slow to embrace social media as a communication vehicle with their customers.

57% of financial institutions with $1 billion in assets or more say social media is important to gaining a competitive advantage, while only 37% of smaller institutions agree. One fifth of smaller institutions believe social media is unimportant, while none of their larger brethren feel the same way.

One in three small financial institutions say they have no plans to develop a social media strategy, even though proposed FFIEC regulations will make them mandatory for everyone.

72% of institutions not using social media today cite concerns over data security as a major barrier. 69% say limited availability of resources is what prevents them from engaging in social channels. Two thirds are concerned about all the compliance headaches that come along with a social strategy.

One quarter of financial institutions with $1 billion in assets or more say they are doing well with social media, but an equal number say they are doing a poor job. Practically no one thinks they are doing a great job.

Katie Robinson, VP of Strategic Innovation at FIS says banks and credit unions need to figure social channels out, because they are here to stay. “Despite the risks associated with social media,” she says, “financial institutions need to learn how to leverage appropriate social media platforms to listen to and converse with their customers to remain relevant – especially with today’s younger, vocal consumers.

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Comments

  1. social media strategy says:

    very true I am a consultant to a financial corporation. They particularly seem to be not really open to make investments in social media, although i feel this could change in the near future and social media will become an integral part of marketing and customer service for financial institutions.

  2. Dev Digital says:

    Nice post, and no industry can now neglect the power of social media optimization. Glad to know that slowly but banking is utilizing the social media medium.

  3. Great article and infograph! Although most financial institutions( according to these stats) are slow to adopt Social Media as a legitimate tool to engage with their customers and prospects, the trend is going in the right direction…up and up. Hopefully, they’ll see the light before it’s too late.

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