CorpComms Magazine

The banking industry needs to recognise the value of social media if it is to retain customers in the current economic climate, according to a new study. With 50 per cent of UK consumers employing a variety of online tools to make financial decisions, the research suggests banks need to appreciate the power of sites such as Twitter and Facebook when it comes to customer services.

The report, released by independent market analyst Datamonitor, warns against the notion that social media is 'just a fad' and emphasises that it is no longer solely the realm of 'the younger generation'.

According to Anna Large, who authored the report, banks have adopted a 'bury-their-heads-in-the-sand' approach when it comes to acknowledging the role of social media - and they need to think again. 'Consumers are now viewing social networking sites in a far more serious manner,' she said. 'Banks would be naïve to believe that consumers don't listen to recommendations made online. Word of finger has replaced word of mouth, so product recommendations and brand advocates are far more accessible.'

Brits are ahead of the curve when it comes to finding financial information online, with half the population logging on against a global figure of 41 per cent. According to the report, 'online media' is most popular among 25 to 34 year olds.

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