Banks embrace social networks

The future of banking is one of the key topics of this month’s Lending Zone round table discussion. Social networking is increasingly changing the way that we live our lives and carry out business transactions. Nowhere is this more apparent that in the business of banking.

There was an interesting article in The Times recently that revealed how people were now finding that they received a better response from the financial services industry if they complained on Twitter than via traditional forms of kicking up a fuss.

With Twitter users able to re-tweet articles they find amusing or feel strongly about, it doesn’t take much to get a trend going, so it seems common sense for firms to ensure they monitor what consumers are writing about them.

So it is interesting that some of the newer banking entrants are placing the use of Twitter and Facebook at the heart of their business propositions.

As Stuart Sinclair, chief executive officer of Home and Savings Bank, says on page 28 of the round table discussion, it was the film, The Social Network, that switched him on to embracing the internet 2.0.

He believes that working out how the likes of Facebook and Google can be used to get his organisation talked about at the very least, is vital.
Not surprisingly, Virgin Money has a similar attitude, as does NBNK