Most retail banks do not view social media as an important tool to engage with customers according to a report from Ovum.
Almost two thirds of the world's retail banks have no plans in place to use social media in any way. Currently just six per cent of retail banks use social media to deal with customer queries and only a further one per cent envisage using it in this way between 2011 and the end of 2012.
Meanwhile only 14 per cent currently use it for marketing, with a further 12 per cent planning to use it to promote their business by the end of 2012.
Ovum analyst Martha Bennett said: "We feel that this attitude from retail banks towards social media is a major issue in an era of aggressive competition. The banks without a social media strategy are being shortsighted and are placing themselves in a dangerous and vulnerable position compared to competitors who have realised that social media can and must play an intrinsic role in their business."
Consumers are not averse to receiving promotional messages via social media, or using it for customer service enquiries
Martha Bennett, Ovum According to the report, there is a handful of retail banks that have begun to use social media such as First Direct in the UK, Citi, Bank of America and Wells Fargo in the US and Rabobank in the Netherlands, although they are still feeling their way and their strategy is very much a work in progress.
"These banks have been justifiably held up as industry leaders for their use of social media, however there is not universal acceptance that social media is either important or suitable for retail banks," said Bennett.
She added: "Consumers are not averse to receiving promotional messages via social media, or using it for customer service enquiries so a massive opportunity to rebuild the confidence in the sector that is so desperately needed is being ignored."
What to find out more about how to use Social Media in Retail Banking to create transparent communication download this presentation form Ayo Oyedepo, Head of Contact Centre, Oceanic Bank Plc.
3.Introduction to TQM
4.Principles of TQM
5.Cost of Quality
6.Stakeholder analysis & management
7.TQM approach to customer care
8.Benefits of Quality
If you find this content interesting you might also be interested in hearing from the region's largest gathering of marketing, loyalty and data professionals strategizing how to improve the effectiveness of their customer engagement strategy and attend En-Gage: The Marketing Show 2012