Social media case examples
National Australia Bank (Australia) - Monitoring comments/complaints
In December 2012, National Australia Bank (NAB) launched a ‘social media command centre’. Staffed by marketing and communications teams, the centre has state-of-the-art technology to track what is happening on social media and enable the bank to respond effectively. The bank has more than 120,000 followers on different social media, and is getting around 5,000 comments per month, but this figure is growing fast.
Erste Bank (Austria) - Providing advice and support
The Erste Bank Virtual branch on Facebook is a virtual branch in which clients can interact with the bank, obtain information, chat or initiate simple banking business in a fun, modern way and 24/7 from a medium they are using daily i.e. Facebook. Erste developed this service after recognising that clients do not have time and do not want to go to branch offices as much as they used to. Clients want to bank in an environment that is their own and in a modern, instant way.
mBank (Poland) - Delivering offers to Facebook
mBank has developed a new online banking platform one feature of which is the capability to deliver special offers to customers, either in online banking or directly to their Facebook account. These offers are personalised based on the customer’s transaction history with the bank. They can also be ‘gifted’ from Facebook by the customer to other friends and usage of the deals can be tracked.
DenizBank (Turkey) – Facebook banking
DenizBank was the first bank in the world to make money transfers possible on Facebook. Customers are able to send money from their Facebook accounts 24/7 to anyone, regardless of them being DenizBank customers or not, to their mobile phones and the recipients can withdraw the amount from any DenizBank ATM or make money transfer via their mobile phones with no limitations. DenizBank Facebook Branch followers can also use calculation tools and make product applications from fast application fields.
CommBank (Australia) – Facebook banking
The first app of its kind in Australia, CommBank Kaching for Facebook makes banking in Facebook possible. Customers can make peer-to-peer payments to Facebook friends, or by using their mobile phone number or email address. It is also possible to make payments to Facebook Events, send gift payments or ‘request’ a payment from a Facebook friend. The app also makes it possible to check account balances, transaction history and transfer money between accounts.
ICICI Bank (India) – Facebook integration with bank account
ICICI Bank is the largest privately owned bank in India, with a history of rapid growth in retail banking and a reputation for innovation. In early 2012, ICICI launched a Facebook banking service which includes account information, special offers, and links to the bank’s web site. This may not sound like much but it’s the first major bank to provide meaningful banking functionality through Facebook, rather than just marketing information. The Facebook app is hosted on secure ICICI servers, and requires the customer to enter a debit card number and password before it can be accessed, but without leaving Facebook.
Moven (United States) – Using social media data to understand customers
Moven is a recent start-up in the US which is still in beta phase. Not really a bank, it’s a money management service, linking a card account with sophisticated money management tools. The company has a number of innovations, but one is to use information from customer’s social media profiles (as well as other data) to create a CREDscore which leads to different pricing on various services. Customers can also improve their score by recommending Moven to others.
Barclaycard (United States) – Communities and crowdsourcing ideas
Barclaycard launched a new credit card proposition in the United States in early 2012 called Barclaycard Ring. The proposition focuses on transparency and simplicity, and is set up to enable the community of users to provide feedback that will shape developments. Barclaycard describe it as the world’s first ‘crowdsourced’ credit card. Users who actively engage in the community will also benefit from a ‘giveback’ scheme.
First Direct (United Kingdom) – Customer generated content
In 2012, First Direct ran a promotion to crowdsource photos from the public for use in future advertising campaigns. The theme of the campaign was ‘pictures of happiness’. The winner and runners-up, based on a public vote, received a prize. The exercise received a high degree of customer engagement, and good press coverage.
Knab (Netherlands) - Customer reviews
Knab is a new bank, recently launched in the Netherlands, and owned by insurance company Aegon. The provision of financial advice at Knab is by independent financial advisers, and the company allows customers to rate the advisors so this is transparent to other customers on the web site.
Swish (Sweden) - Launching new products
The Swish P2P payments service was launched in Sweden in December 2012 by a consortium of banks and social media was used to support the launch. There was a campaign through the local auction site Tradera, with intensive bloggers auctioning items and the payment made by the new P2P service (with income going to charity).
The Potential of ‘Big Data’
According to the McKinsey Global Institute, the term ‘big data’ refers to datasets whose size is beyond the ability of typical database software tools to capture, store, manage, and analyse6. Experts also talk about the three primary characteristics of big data being volume, velocity and variety.
A good example was provided in a recent Harvard Business Review article which described the use of big data and predictive analytics by PASSUR Aerospace to improve the operational efficiency of airport ground services7. This company combines massive amounts of data in real time from a range of different data sources including weather reports and local radar, and looks for historical patterns in the data to predict aircraft arrival times to a high degree of accuracy.
In the same article, the authors report that their research shows that the more companies characterized themselves as data-driven, the better they performed on objective measures of financial and operational results. In particular, companies in the top third of their industry in the use of data-driven decision making were, on average, 5% more productive and 6% more profitable than their competitors.
Our survey shows that only a few retail banks have started to work on big data projects (see Figure 18). For those banks which have started working with big data, the effectiveness of the projects for increasing revenues or reducing costs is so far relatively modest. On a scale of 1 to 7, banks rate the effectiveness for increasing revenues at 4.3, and for reducing costs at 4.2 (see Figure 19).