Connect with us

Banking

5 ways social listening is transforming the banking sector

Published

on

5 ways social listening is transforming the banking sector 1

By Michalis Michael, CEO of DigitalMR

Social media has impacted the banking sector significantly over the last decade and, particularly in recent years, tools like social listening have played a leading role in revolutionising banking businesses and their customer relationships.

Also known as ‘social intelligence’, social listening is the monitoring of a brand’s social media channels for any customer feedback, direct mentions, or relevant discussions, followed by an analysis to gain insights and act on emerging opportunities.

Banks today are facing immense pressure from ever-increasing customer expectations. In fact, a recent social intelligence report compiled by DigitalMR analysed customer sentiment and conversation drivers amongst 11 leading global banks during the period of February 2018 to April 2020 and found customer relationships hit an all-time low during the peak of the coronavirus pandemic.

As a result, traditional financial institutions have a lot of work to do to rebuild their reputations while at the same time competing with countless challenger banks, and embracing digital tools like social listening will be key for them to stand out against competition and draw customers back in.

Here are 5 of the main ways social listening is transforming the banking sector and becoming paramount for organisations to optimise their marketing and growth strategies and, ultimately, get ahead.

  1. Customer experience

Social media isn’t just about communicating a brand – it’s about learning what consumers want, and what they don’t want. It plays a key part in customer experience, which directly affects the way every business is perceived.

Many banking customers turn to social media to talk about their experiences with a brand and will sooner tweet the bank or post a scathing review on Google than call customer service about any issues.

Using social listening to monitor what customers think about everything, from their marketing campaigns to product quality and in-branch service, banks can uncover valuable information which allows them to positively impact a customer’s experience and commitment to their brand.

  1. Marketing campaigns  

Banks’ marketing teams spend a lot of time coming up with new campaigns to launch but lack the insight into whether or why their campaigns have succeeded, and how to improve or build upon those efforts.

However, using social listening, they can identify ways to improve the value of their marketing campaigns by tracking changes in the volume of their brand’s mentions before, during and after. This will ultimately help determine how well they are working and highlight areas that need to be modified and improved.

Michalis Michael

Michalis Michael

Not only that, banks can use social listening to gather qualitative insight and decipher the reasons why specific campaigns have done well [or not so well]. Social listening allows them to quickly gather sentiment around specific campaigns and find out which aspects of the campaign are resonating with customers the most.

  1. Competitive analysis

Social listening enables banks to gather insight not only into their own brands, but into their competitors’ brands, too. Using semantic analysis, they can analyse what people say about one company compared to another and evaluate the share of conversation that takes place online about a given brand. Social listening can also make it easier for traditional banks to understand how their brand is doing compared to FinTech start-ups [challenger banks], which are becoming a growing threat to many banks and taking their customers away.

Social listening analytics reveal what customers like and dislike when it comes to challenger bank service features and give traditional banks the opportunity to upgrade their products and services to catch-up or [if they are really determined] gain a competitive edge, as well as understand how to market to customers interested in innovative app features.

  1. Identifying crises

With how fast-moving social media is, it takes no time at all for something to go ‘viral’, and therefore banking institutions need to monitor closely for negative press at all times. Unhappy customers can post anything they wish online to try and hurt their bank’s brand, regardless of whether their claims are based on fact, and their comments can quickly gain attention and be seen by thousands.

Banks can use social listening to catch potential crises as they emerge and shut down a problem in the early stages, so they don’t end up with a full-blown crisis management situation on their hands.

  1. Product development

Banks can power their product and service development by intelligent listening to social media and monitoring customer reviews. This allows them to gain additional input and ideas on how to better improve their existing offerings to suit the preferences and expectations of their customers, as well as to identify which new product lines to prioritise launching first. They can use social listening to test the waters before a new launch or roll-out, and reduce the risk involved in bringing new products or services to market.

The finance industry was slow to embrace social media, but the institutions that did take the plunge are reaping the benefits. Social intelligence will continue to transform the sector in years to come, and now is a critical time for the rest of the industry to follow suit if they want to remain competitive and drive stronger, profitable and mutually beneficial relationships in this new social reality.

Banking

SoftBank telco unit rotates CEO, Son steps down as chairman

Published

on

SoftBank telco unit rotates CEO, Son steps down as chairman 2

By Sam Nussey

TOKYO (Reuters) – SoftBank Corp, Japan’s third-largest telco, said on Tuesday Chief Technology Officer Junichi Miyakawa would become its chief executive officer, effective April 1.

The change at the top of one of SoftBank Group Corp’s largest assets comes after two years of deliberation, with the telco emphasising the need to “pass on the strengths of its current management system to future generations.”

The rotation is likely to lead to speculation over SoftBank Group CEO Masayoshi Son’s own succession plans. The 63-year-old billionaire abandoned a previous plan to hand over the reins and went on to launch the $100 billion Vision Fund.

The son of a Buddhist priest, 55-year-old Miyakawa is a technical whizz driving projects including the wireless carrier’s 5G build-out. He replaces 71-year-old Ken Miyauchi, a key lieutenant of Son, who took up the post in 2015.

Miyauchi will take the post of board chairman from founder Son, who will remain on the board. A household name in Japan, Son joins business leaders such as former Apple CEO Steve Jobs in being the face of the company he runs.

During Miyauchi’s tenure, the telco had a bumper IPO in December 2018 to feed cash to SoftBank Group as it shifted its focus to investing in tech companies. Son has since further reduced the group’s stake after a series of high-profile stumbles.

Miyakawa takes the helm as the industry faces unprecedented political pressure to cut fees, potentially eating into fat margins in its core business.

Looking to grow sales beyond selling mobile and broadband subscriptions, SoftBank is integrating a hodgepodge of companies including online fashion retailer Zozo and message app operator Line Corp into internet business Z Holdings.

Known for blue sky thinking including flirting with the idea of making cars, Miyakawa’s pet projects include an attempt to deliver broadband via drones. Alphabet Inc said last week it was abandoning its own balloon-based attempt.

(Reporting by Sam Nussey; Editing by Tom Hogue, Shri Navaratnam and Subhranshu Sahu)

Continue Reading

Banking

Over 60’s turning to digital banking up by 90% during pandemic

Published

on

Over 60’s turning to digital banking up by 90% during pandemic 3

More than 90% of people aged over 60 have used online banking for the first time during the Covid-19 pandemic, according to a poll by iResearch Services, highlighting the importance of banks getting digital right in 2021.

In comparison, 17% of people aged under 30 said they were accessing services via an app or web browser for the first time.

The findings show how banks must adapt to help service the influx of new digital users and gain their trust, accelerated by the Coronavirus pandemic. With 97% of 18–24-year-olds trusting their bank with their data, compared to only 33% of people aged over 66.

Commenting on the findings, Gurpreet Purewal, Associate Vice President, Thought Leadership, at iResearch, said: “Our study demonstrates the lasting impact of Coronavirus on how people will access banking services from now on. Banks will be required to refocus on really understanding customer needs in order to engage with the different requirements of each individual customer.

“More than half (54%) of respondents said they are less likely to attend a physical branch after the pandemic. This demonstrates a seismic shift in the way people will access banking services now and into the future.”

In other findings, 63% of respondents said their bank acted in their best interests during the pandemic, but a third said they would consider switching their bank for better, more personalised communication.

Purewal added: “On the whole, High Street banks have emerged with great credit from the pandemic for the way they have supported their customers. As the economy rebuilds, it will be more important than ever that they communicate in the right way to help consumers through 2021 by leveraging digital platforms and understanding their needs fully.”

Asked how banks can improve their communication with customers, ‘connecting on a personal level’ ranked highest, followed by ‘more honest and open dialogue’, a ‘demonstration of how they are helping customers’, ‘more creative campaigns’, ‘consistent messaging across channels’ and finally ‘responsiveness to major events’.

Continue Reading

Banking

Banking on the cloud to create a crucial advantage in financial services

Published

on

Banking on the cloud to create a crucial advantage in financial services 4

By Rahul Singh, President of Financial Services, HCL Technologies

Once considered a revolutionary technology, cloud is now at the heart of agile and innovative businesses. The financial services industry is no exception, and has been a major adopter of cloud-based Software-as-a-Service (SaaS) for its non-core applications. Functions such as customer management, human capital management, and financial accounting have progressively shifted to the cloud. Several banks have also warmed up to using cloud for services such as Know your Customer (KYC) verification. IDC analysts say that public cloud spending will grow from $229 billion in 2019 to almost $500 billion by 2023, and a third of this will be spent across three industries: professional services, discrete manufacturing, and banking. The time is ripe for an increasing number of financial services providers to consider moving more of their core services to cloud.

Adoption is already on the rise

Earlier reluctance to move core activities to the cloud has softened, and many banks have put strategies in place to migrate services, including consumer payments, credit scoring, wealth management, and risk analysis. This significant change is driven by factors such as PSD2 and open banking, which require secure and cost-effective data sharing.

Regulators too were once cautious in their approach to cloud technology, but this is also changing. The Australian Prudential Regulation Authority (APRA), for example, whilst acknowledging the risks associated with cloud, also recognised the risk of sticking to the status quo. ARPA trusted the enhanced security offered by the cloud, and updated its cloud-associated risk advice. Wisely, APRA recommended that banks must develop contingency plans that allow cloud services to be provided through alternate means if required.

Rising pressure from new challengers

The other pressure for incumbent banks is from next generation fintech firms. These are cloud-native organisations, and are able to onboard customers remotely in minutes, roll out new services in days, and meet compliance requirements at lower costs.

As a result, the need for traditional banks to upgrade core systems and integrate the latest technologies is stronger than ever. The COVID-19 pandemic has been an additional driver, highlighting the importance of upgrading and migrating core systems to the cloud. Financial services organisations have been forced to rethink their approach to digital transformation, and pay special attention to a cloud-aligned culture. The industry is recognising how the cloud can address new and ongoing regulatory changes, meet different demands from customers, support the roll-out of emerging technologies, and enable incumbent providers to respond to the relentless competition from fintech firms.

New year, new priorities

As we enter 2021, financial services providers will need to reset their priorities, and go beyond using the cloud for scalability and cost efficiency alone. The new areas to focus on will include:

  • Creating a robust digital foundation: The cloud market is expanding fast, and there is an ever-increasing number of services on offer. Whilst the big three hyper-scalers are the obvious choice, various other players are also gaining traction, such as IBM, Oracle, and Alibaba Cloud. Organisations will need a robust digital foundation to adopt cloud at scale in a secure and compliant way. A well-architected digital foundation, supported by resilient operations, ensures that organisations have continued access to their systems and data, regardless of where employees are located, or what device they are using.
  • Adoption of technology platforms: Enterprises are finding ways to reduce complexity by embracing a platform approach, and increasing the speed of business IT consumption. Physical infrastructure is being abstracted into cloud-based platforms, with data consolidated into data lake platforms. Software products like Apigee are being offered as capability platforms to drive better analytics and intelligence.
  • Enhancing IT security: Cloud offers organisations greater security than on-premises servers, if implemented correctly. Financial services organisations have relied on control and compliance-based security for years, but these practices are increasingly vulnerable to cyber threats. Whilst service integrators create robust cybersecurity solutions for financial services organisations, cloud providers are also looking to provision industry-specific security and regulatory measures like end-to-end data encryption – making it easier for financial services organisations to be compliant whilst migrating to cloud.
  • Driving innovation: Cloud is the fundamental factor behind the ability of fintechs to innovate rapidly. Using cloud, financial services can leverage new technologies and tools like augmented reality (AR), virtual reality (VR), natural language processing (NLP), machine learning (ML) and the Internet of Things (IoT) to unlock new processes that improve customer interaction and experience with portable real-time services. Whilst fintechs have led the way in cloud-based innovation through open banking platforms, some of the leading banks are also adopting cloud to simplify their business processes, including KYC as a Service, to enhance customer experience.
  • Enterprise synchronisation: Effective collaboration, both internally and with external partners, is crucial to success in the ever-expanding financial services ecosystem. Cloud allows businesses to integrate collaboration through shared tools and platforms. This is a critical ability as it leads to faster decisions and improved innovation cycles.

Legacy systems hold banks back from improving revenue generation and restrict their ability to build a responsive and resilient business. Cloud is a key factor in the success of challengers: traditional banks have no time to waste in migrating their core systems to cloud and building a secure future.

Continue Reading
Editorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.

Call For Entries

Global Banking and Finance Review Awards Nominations 2021
2021 Awards now open. Click Here to Nominate

Latest Articles

JPMorgan to launch UK consumer bank within months 5 JPMorgan to launch UK consumer bank within months 6
Business2 hours ago

JPMorgan to launch UK consumer bank within months

LONDON (Reuters) – JPMorgan Chase & Co will launch a digital consumer bank in Britain under its Chase brand within...

European regulator clears Boeing 737 MAX airliner for return to service 7 European regulator clears Boeing 737 MAX airliner for return to service 8
Business2 hours ago

European regulator clears Boeing 737 MAX airliner for return to service

(Reuters) – Boeing Co’s modified 737 MAX airliner is safe to return to service in Europe, the European Union Aviation...

Wall Street expects near-record iPhone sales despite delay, shut Apple stores 9 Wall Street expects near-record iPhone sales despite delay, shut Apple stores 10
Business2 hours ago

Wall Street expects near-record iPhone sales despite delay, shut Apple stores

By Stephen Nellis (Reuters) – During the last three months of 2020, Apple Inc delivered its flagship iPhone 12 model...

ECB comments suppress euro, dollar perks up ahead of Fed 11 ECB comments suppress euro, dollar perks up ahead of Fed 12
Business2 hours ago

ECB comments suppress euro, dollar perks up ahead of Fed

By Ritvik Carvalho LONDON (Reuters) – The euro fell on Wednesday, under pressure after a European Central Bank official said...

Business jet prices seen as stabilizing in 2021 after year-end order blitz 13 Business jet prices seen as stabilizing in 2021 after year-end order blitz 14
Business2 hours ago

Business jet prices seen as stabilizing in 2021 after year-end order blitz

By Allison Lampert and Ankit Ajmera (Reuters) – Preowned business jet prices are seen stabilizing in 2021, boosted by a...

Sterling gets vaccine boost to hit 8-month high vs euro 15 Sterling gets vaccine boost to hit 8-month high vs euro 16
Finance3 hours ago

Sterling gets vaccine boost to hit 8-month high vs euro

By Joice Alves (Reuters) – Sterling rose to a fresh eight-month high against the euro on Wednesday as Britain’s faster...

GameStop stock doubles again with no let-up in amateur interest 17 GameStop stock doubles again with no let-up in amateur interest 18
Business3 hours ago

GameStop stock doubles again with no let-up in amateur interest

(Reuters) – Shares of videogame retailer GameStop Corp surged another 130% on Wednesday in pre-market trading as amateur investors continued...

Britain may raise contactless ceiling after pandemic payment surge 19 Britain may raise contactless ceiling after pandemic payment surge 20
Business3 hours ago

Britain may raise contactless ceiling after pandemic payment surge

By Huw Jones LONDON (Reuters) – Britain will look into raising the limit on contactless payments from 45 pounds to...

Britain may raise contactless ceiling after pandemic payment surge 21 Britain may raise contactless ceiling after pandemic payment surge 22
Business3 hours ago

Britain may raise contactless ceiling after pandemic payment surge

By Huw Jones LONDON (Reuters) – Britain will look into raising the limit on contactless payments from 45 pounds to...

Auto recovery fuels optimism for Europe's earnings season 23 Auto recovery fuels optimism for Europe's earnings season 24
Business3 hours ago

Auto recovery fuels optimism for Europe’s earnings season

LONDON (Reuters) – Expectations for European companies’ profits in the last quarter of 2020 are improving as the reporting season...

Newsletters with Secrets & Analysis. Subscribe Now