Banks using Twitter in many different ways, or not at all
2010-07-06
Twitter has become an important marketing tool for companies in a wide variety of industries. But many banks have been hesitant to include the social media platform as part of their offerings, and those that do use it disagree on how to best utilize the technology to increase customer loyalty in banking.

Jacob Jegher, a senior analyst with Celent, told the paper that while, as a whole, banks are "quite slow when it comes to focusing on innovation," he has seen a significant interest in social media by various financial institutions of all sizes - from small credit unions to the industry's biggest players.

One of the most prevalent uses of a bank's Twitter feed is for promotional purposes such as announcing new bank products or letting customers know about an upcoming financial seminar at a branch location.

Many large institutions, such as Citibank, use Twitter as a customer service avenue, allowing customers to chat with a bank representative about any potential issues they may be having. The immediacy of the medium allows the bank to remedy negative situations more quickly, thereby playing a role in preventing customer attrition.

But the paper says many other institutions, such as Marquette Bank, have taken a much more hands-on approach to the medium. The company's Twitter feed is run by its marketing department, which looks for customers who may be discussing banking online and sends them private messages. In one case, the bank noticed that a consumer was unhappy with another bank's refinancing process, and was able to swoop in and get their business.

Many banks remain unsold on the effectiveness of Twitter, however. David Kreiman, executive vice president at Glenview State Bank, told the Tribune that while he doesn't doubt the importance of social media as a whole, he doesn't think Twitter will have a lasting impact in the banking community.

"My feeling is that users of Twitter are not going to be receptive to a limited character message, and I struggle to see what ongoing messages would appeal to customers and prospects via Twitter," Kreiman told the source.

As of late March, just over 1,000 financial institutions in 60 countries were using Twitter, according to the industry blog Visible Banking. Compare that to the roughly 8,000 banks in the U.S. alone, and it gives a clear picture that financial institutions are not diving into the Twitter world headfirst.

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