A Social Media discussion from Net.Finance

As mentioned in a previous post, I attended the Net.Finance Conference in Chicago last week. It was a very nice turnout of financial institutions, investment firms, insurance companies, and vendors. One of the personal highlights was watching a Cubs game from the Wrigley Field Rooftop Club as a guest of Rosetta, one of the long time sponsors of the event. I had the pleasure of being part of a panel discussion called Prioritizing Technology Initiatives to Gain Competitive Advantage along with Stu Fisher, SVP of Addison Avenue FCU and Mark Schwanhausser, a Research Analyst with Javelin. Social Media and Personal Financial Manager (PFM) solutions were the two primary topics. Today's post will focus on social media.

Both of our companies have been early adopters of social media including Twitter, FaceBook, and Blogs. Addison Avenue recently added some community groups and hired a social media manager to add focus to their efforts. We will be adding a Community component to our site in June. There are some compelling reasons for participating in social media. Javelin's research indicates that over 52% of all consumers are active in social networking, with the 35-44 year-old's the fastest growing segment.

While our organizations are very different, we did agree on one key point. Social media should be an extension of, and not separate from, your overall web strategy. Let's face it, bank web sites can be somewhat boring with product descriptions and (lots) of regulatory disclosures. Our goal has been to connect with customers and prospects, build the brand, and have some fun in a less formal environment. How you use it, or whether you even participate or not, depends on your overall strategy.

Next post will be on the Personal Financial Management discussion from Net. Finance.

Is it time for Mobile Banking?

Mobile Banking seems ready to explode. Javelin Strategy & Research forecasts that over 191 million U.S. Consumers will have cell phones by 2012. According to the Online Banking Report, mobile banking has "reached the point where online banking was a decade ago". And, as Net Banker reported this week, Bank of America is rolling out their Text Banking service after supporting mobile (WAP and downloadable apps) for over three years.
One of the key questions is how will this new service mesh with the current online offerings. Many are suggesting that this will appeal to a different market than the current online banking customers. The Gen Y's, for example, have grown up tethered to their cell phones. Then there are the Underbanked who use mobile devices. They have found other ways to manage their personal finances without using the typical services of banks but might be open to a mobile option.
We will be introducing a mobile solution later this year. We are pretty excited about the offering and think it will help us attract and retain the younger consumers. If you are an FI with mobile banking, I'd love to hear what your experience has been.