SOCIAL MEDIA FOR BANKING AND WEALTH MANAGEMENT 2014

Transcription

1 1 SOCIAL MEDIA FOR BANKING AND WEALTH MANAGEMENT 2014 THE GAP IS WIDENING Report Extract Original Report with 171 pages plus comprehensive data appendix December 2014 MyPrivateBanking Report 4 th edition

2 SOCIAL MEDIA FOR BANKING AND WEALTH MANAGEMENT CONTENTS TABLE OF FIGURES EXECUTIVE SUMMARY RANKINGS OVERALL RANKING RANKING BY SECTION METHODOLOGY SELECTION OF BANKS AND SOCIAL MEDIA CHANNELS DEFINITIONS OF PERSONAS AND USE CASES EVALUATION PROCEDURE DETERMINING THE CRITERIA STRATEGY INTRODUCTION THE SUCCESS AND SCOPE OF SOCIAL MEDIA THE USES THAT BANKS CAN AND DO PUT SOCIAL MEDIA TO THE CORE SOCIAL MEDIA CHANNELS FOR BANKS TOP LEVEL IMPRESSIONS FROM MYPRIVATEBANKING S BANKING SOCIAL MEDIA RESEARCH CUSTOMER SERVICE VIA SOCIAL MEDIA HELPING USERS TO FIND THEIR WAY AROUND A FEW WORDS CAN MEAN SO MUCH! THE GROWING IMPORTANCE OF VISUAL SOCIAL MEDIA LOCAL AND PERSONAL LEVEL SOCIAL MEDIA WHAT S THE RIGHT BALANCE BETWEEN CONVENTION AND ORIGINALITY IN SOCIAL MEDIA? WHAT IS REQUIRED FOR AN EFFECTIVE BANKING SOCIAL MEDIA STRATEGY? SUMMARY OF FINDINGS 45 OVERALL SOCIAL MEDIA COVERAGE HAS SIGNIFICANTLY INCREASED SINCE CORPORATE AND INVESTOR RELATIONS SOCIAL MEDIA: WEAK ON FACEBOOK, STRONG ON LINKEDIN 46 RETAIL SOCIAL MEDIA: GOOD PERFORMANCE ON FACEBOOK, POSITIVE SURPRISES ON PINTEREST 50 WEALTH MANAGEMENT SOCIAL MEDIA: WEAKNESS PREVAILS 55 SOCIAL MEDIA STRATEGY AVAILABLE FOR MOST BANKS 59

3 SOCIAL MEDIA FOR BANKING AND WEALTH MANAGEMENT PROFILES ABN AMRO (INCLUDING MEESPIERSON) BANK OF AMERICA (INCLUDING MERRILL LYNCH) BARCLAYS BNP PARIBAS BPCE (INCLUDING CAISSE D EPARGNE AND BANQUE POPULAIRE CITIGROUP CRÉDIT AGRICOLE CREDIT SUISSE DEUTSCHE BANK GOLDMAN SACHS HSBC ING JP MORGAN CHASE LLOYDS BANKING GROUP (INCLUDING BANK OF SCOTLAND) RBC RBS (INCLUDING NATWEST AND COUTTS) SOCIÉTÉ GÉNÉRALE UBS UNICREDIT WELLS FARGO SOCIAL MEDIA BEST PRACTICES IN BANKING CORPORATE SOCIAL MEDIA PRESENCES 156 POWERFUL VISUAL STREAM ON FLICKR: UBS AND XXX 156 STRATEGICALLY PROMOTING AN OFFICIAL TWITTER STREAM: XXX AND XXX 157 COHESIVE CORPORATE SOCIAL MEDIA STRATEGY: XXX AND XXX RETAIL 159 OUTSTANDING CUSTOMER SERVICE ON A TWITTER STREAM: XXX 159 CAPTIVATING IMAGES ON PINTEREST: XXX 160 ENHANCING COMMUNICATION VIA SOCIAL MEDIA PLATFORMS: XXX AND XXX 161 INTRODUCTING THE SOCIAL MEDIA TEAM ON TWITTER: XXX AND XXX WEALTH MANAGEMENT 163 INNOVATIVE STRATEGY FOR WINNING WEALTH CLIENTS: XXX AND XXX 163 PINTEREST BOARD FOR INFOGRAPHICS: XXX 164 EXEMPLARY LINKEDIN PRESENCE: XXX 165 PERSONAL LEVEL TWITTER STREAM: XXX 166

4 SOCIAL MEDIA FOR BANKING AND WEALTH MANAGEMENT SOCIAL MEDIA STRATEGY 167 INNOVATIVE PRESENTATION OF SOCIAL MEDIA PORTFOLIO AND UPDATES: XXX 167 QUICK OVERVIEW OF SOCIAL MEDIA PORTFOLIO: XXX 168 BREADTH AND COMMITMENT OF THE SOCIAL MEDIA STRATEGY: XXX AUTHORS DISCLAIMER 171

5 SOCIAL MEDIA FOR BANKING AND WEALTH MANAGEMENT TABLE OF FIGURES Broadcasting service information via Twitter 26 Social Media the Success Story 27 General Electric projecting corporate self-belief via Instagram 30 This offer is finished but BNP Paribas promises that there will be more! 34 Bank Customer Service Twitter Stream 35 Facebook harnessed to help with the (hugely controversial) GM ignition vehicle recall 36 Banque Populaire, part of BPCE promotes its Route de Rhum sponsorship through Instagram 39 Personal level Twitter stream (RBC) 40 ABN AMRO MeesPierson Financial Focus websites 61 Bank of America Pinterest page ( Better Money Habits ) 66 Barclays Customer Service Twitter 71 BNP Paribas retail Facebook presence 76 The interactive social media menu on Groupe BPCE s home page 81 Citi official Twitter channel 86 Crédit Agricole Pinterest presence 91 Credit Suisse Flickr photo stream 96 Deutsche Bank LinkedIn presence 101 Goldman Sachs LinkedIn presence 106 HSBC Official Twitter stream 110 From the YouTube video of ING NL CEO, Nick Jue s Google+ hang out with customers 115 J.P. Morgan official Twitter stream 120 Lloyds Bank Facebook presence 125 The RBC Next Great Innovator Challenge Facebook page 129 Coutts LinkedIn presence 133 Société Générale So Music Facebook presence 137 UBS Flickr photo stream 141 UniCredit Google+ presence 146 Wells Fargo retail Facebook presence 151

6 SOCIAL MEDIA FOR BANKING AND WEALTH MANAGEMENT EXECUTIVE SUMMARY >> Over the last two years banks have improved their overall presence in social media, as the 20 leading banks worldwide have at least one presence on the major channels like Facebook, LinkedIn and Twitter. There are also encouraging levels of engagement with the visual social media channels Instagram and Pinterest. For instance, 95% of banks can boast a Facebook page targeted at retail clients and 90% have a dedicated Twitter stream, compared to 66% and 72% in 2012 respectively. But the bad news is that the banks social media activities are unevenly distributed and the quality of content remains, on average, unsatisfactory. << These are the main findings of the fourth global ranking of the social media presences of 20 leading banks and wealth managers in the report Social Media for Banking 2014: The Gap is Widening, conducted by the Swiss research company MyPrivateBanking Research. The leading banks in MyPrivateBanking s overall social media ranking are Barclays and UBS (each with 65 points out of a maximum of 90 points) followed by Société Générale (64 points) and ABN AMRO (63 points). This group of leaders shows particular strengths in the areas of originality and innovation and customer service. The winners for the best social media presences in the areas of retail banking, wealth management and coporate/investor relations are as follows: Wells Fargo has the best retail bank social media presence (90% of maximum possible points), Barclays is the social media leader in Wealth Management (88% of maximum possible points) and Deutsche Bank can boast the best social media for its corporate unit and investor relations (92% of maximum possible points). On average, the retail banks are the leaders as they achieve 67% of the maximum possible points, while the corporate and investor relations divisions come out weaker at 62%. However, the wealth management and private banking divisions have by far the poorest results with an average score of only 42% of the maximum possible points. While overall the use of social media by banks and wealth managers made some progress, we found that there was a significant disparity between the offerings for retail clients and what banks provide to their wealthiest clientele. While the retail offering is of satisfactory quality, high-net-worth clients are in many cases put off by social media that is not interesting, not up-to-date and not interactive. This reflects a misperception by banks that social media is only used by members of the millennial generation, which is a great mistake as our research shows that social media is increasingly used by more senior and wealthier customer segments.

7 SOCIAL MEDIA FOR BANKING AND WEALTH MANAGEMENT The following list of weaknesses in banks social media activities features only a fraction of the shortcomings that are identified and analyzed in the MyPrivateBanking report: Social media presences strong in retail banking, weak in wealth management and on the corporate level: The level of interaction with users on most social networks is not satisfactory at all. Quality of content very unbalanced: Shortage of links from social media presences to the rest of the banks digital offerings on websites or other channels. We are concerned about the common tendency for banks to avoid providing adequate coverage of their business on social media and the lack of exchange with their clients and stakeholders on these platforms. A high proportion of banks are failing to supply enough news about themselves and all too many social media presences are lacking in information about new products and services or changes to existing ones. Nevertheless, MyPrivateBanking found it encouraging that about 90% of the banks covered by our report have at least made an effort to formulate an explicit media strategy and communicate it to their clients and stakeholders.

8 SOCIAL MEDIA FOR BANKING AND WEALTH MANAGEMENT Based on their research analysis, MyPrivateBanking recommends the following top-five strategic measures for banks to improve their social media standing and strengthen their footprint on the most important social networks globally: Wealth managers and private banks in particular must take a more holistic view of social media Banks should provide corporate Facebook pages Banks need to increase the frequency of content publication over nearly all channels, Banks should make sure to engage visitors on social media Banks marketing departments need to talk more about products and services Analyzed Banks: ABN AMRO (including MeesPierson), Bank of America (including Merrill Lynch), Barclays, BNP Paribas, BPCE (including Caisse d Epargne and Banque Populaire), Citigroup, Crédit Agricole, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, ING, J.P. Morgan Chase, Lloyds (including Bank of Scotland), Royal Bank of Canada, Royal Bank of Scotland (including NatWest and Coutts), Société Générale, UBS, UniCredit; Wells Fargo

9 SOCIAL MEDIA FOR BANKING AND WEALTH MANAGEMENT RANKING 2.1 OVERALL RANKING Rank Bank Total Points (max. 90) Corporate & Investor Relations (max. 24) Retail (max. 31) Wealth Management (max. 26) Social Media Strategy (max. 7) Best Practices (max. 2) 1 Barclays 65 1 UBS 65 3 Société Générale AVERAGE

10 SOCIAL MEDIA FOR BANKING AND WEALTH MANAGEMENT RANKING BY SECTION CORPORATE (max. 24) RETAIL (max. 31) WEALTH MANAGEMENT (max. 26) Rank Bank Total Rank Bank Total Rank Bank Total 1 Deutsche Bank 1 Wells Fargo 1 Barclays 2 UBS 2 Crédit Agricole 2 RBS/Coutts 2 Citigroup 3 Société Générale 3 Credit Suisse

11 SOCIAL MEDIA FOR BANKING AND WEALTH MANAGEMENT METHODOLOGY 3.1 SELECTION OF BANKS AND SOCIAL MEDIA CHANNELS This study analyzes the social media activities of the 20 leading global banking groups. The 20 providers that were analyzed are the biggest banks and wealth managers worldwide, ranked by total assets on the balance sheet. Only banks which met a certain minimum threshold of social media implementation were included in the evaluation.

12 SOCIAL MEDIA FOR BANKING AND WEALTH MANAGEMENT DEFINITION OF PERSONAS AND USE CASES Based on our published body of research and acknowledged industry user experience standards, our analysts have developed five core use cases. Use case originated as a software and systems engineering term to signify the actions a user must take to achieve a specific result. The term can also be applied to user interfaces in website tests and comparisons, as we have done in our study. By use case we mean a typical scenario of how and why certain user groups approach social media. We have derived our detailed evaluation criteria and their weightings directly from these five use cases: Use Case User Group Objective General public, journalists, existing and potential clients Potential clients All kind of user groups: general public, journalists, existing and potential clients, applicants, suppliers, shareholders Existing and potential clients Existing clients Existing and potential clients

13 SOCIAL MEDIA FOR BANKING AND WEALTH MANAGEMENT EVALUATION PROCEDURE The social media activities of the banks were analyzed by two analysts, independently of each other and the analysis and evaluation were repeated after an interval of five to seven weeks. This was done to minimize the probability of misleading evaluations due to a purely subjective point of view or accidental website or Internet problems at a certain point in time. Also, given the quantity of information that needed to be analyzed, the possibility of not finding all the relevant information for individual members of the target group could not be ruled out. Double checking through having two evaluators working independently removed this danger. All findings were collected during the months of October and November 2014 and represent the status of social media presences during this period only.

14 SOCIAL MEDIA FOR BANKING AND WEALTH MANAGEMENT DETERMINING THE CRITERIA In this study, the overall criterion for evaluating the social media is the extent to which the bank s social media meets the use cases described above, from the point of view of various users. From this the following individual criteria were developed: up-to-datedness, level of engagement and interactivity with the user, followership rates, possibility for feedback and commenting, responsiveness to comments and criticism, and level of interlinking between the social media channels. Overall, a score of 90 points was the maximum. Points were awarded during October and November 2014 (snapshot principle). What follows are descriptions of the evaluation parameters with the detailed criteria and maximum achievable points. In comparison to the 2012 and 2013 reports, there were a number of significant changes in MyPrivateBanking Research s rating scheme. These changes include alterations in the weighting of important areas such as social media for wealth management given the new enlarged focus on newly introduced sections for corporate and investor relations and retail banking, as well as new individual criteria relating to the overall social media strategy of a bank like authenticity checking or responsiveness to negative feedback. The banks surveyed could score points in the following areas: Corporate& investor relations (max. 24 points) Retail (max. 31 points) Wealth management (max. 26 points) Social media strategy (max. 7 points) Best practices (max. 2 points) TOTAL: maximum 90 points Corporate & investor relations Facebook presence (max. 8 points) LinkedIn Profile (max. 6 points) Twitter Stream (max. 7 points) YouTube Channel (max. 3 points)

15 SOCIAL MEDIA FOR BANKING AND WEALTH MANAGEMENT Retail Facebook presence (max. 12 points) Twitter Stream (max. 10 points) YouTube Channel (max. 4 points) Google+ presence (max. 2 points) Pinterest, Instagram or Flickr (max. 3 points) Wealth management Facebook presence (max. 9 points) LinkedIn Profile (max. 7 points) Twitter Stream (max. 7 points) ( more in full report) YouTube Channel (max. 3 points) Social Media Strategy (max. 7 points) ( more in full rep0rt) Best Practice (max. 2 points)

16 SOCIAL MEDIA FOR BANKING AND WEALTH MANAGEMENT STRATEGY

17 SOCIAL MEDIA FOR BANKING AND WEALTH MANAGEMENT SUMMARY OF FINDINGS

18 SOCIAL MEDIA FOR BANKING AND WEALTH MANAGEMENT PROFILES

19 SOCIAL MEDIA FOR BANKING AND WEALTH MANAGEMENT SOCIAL MEDIA BEST PRACTICES IN BANKING

20 SOCIAL MEDIA FOR BANKING AND WEALTH MANAGEMENT AUTHORS Steffen Binder, Managing Director and co-founder of MyPrivateBanking Research. Steffen is Head of Research and oversees the research agenda and analyst teams. He is responsible for creating and developing powerful concepts and relevant content to help our clients navigate a rapidly changing digital environment. As a regular speaker at finance and technology industry events around the globe, Steffen is frequently quoted by leading business media such as the Wall Street Journal, Handelsblatt and the Financial Times. Prior to this, Steffen was Managing Director of Forrester Germany, Switzerland and Austria. He came to Forrester through its acquisition of Forit GmbH, a leading European technology research company, of which he was also a co-founder. Prior to that, Steffen was a partner at Monitor Company (Strategy Consulting). He holds Master s Degrees in Organizational Behavior from Rutgers University (USA) and in Public Administration from the University of Konstanz (Germany). Francis Groves, Senior Analyst, is a team lead for the research on vendors, mobile apps and online services. His specific research interest is communication and understanding in relation to finance topics and investor motivation. He has over 30 years of experience in the field of online business information, having worked for Reuters, the Financial Times and LexisNexis. Francis speaks at conferences and events and has published several books and articles. Among them 'Corporate Actions, A Concise Guide' and 'Exchange Traded Funds, A Concise Guide to ETFs'. Francis has a degree in History, which he studied at the London School of Economics. Roxana Palade, Analyst, specializes in research in the fields of mobile apps for wealth management and online presences of wealth managers. Her specific interest are in the areas of Web 2.0 technologies, vendor management and data mining. Roxana has held a number of research positions in business and academia in Germany, India and Romania. She has a Master s Degree in British and American Studies from the University of Konstanz (Germany) and a Master s Degree in Literature from the Alexandru Ioan Cuza University, lasi (Romania).

21 SOCIAL MEDIA FOR BANKING AND WEALTH MANAGEMENT DISCLAIMER IMPORTANT NOTICE AND DISCLAIMERS: No Investment Advice This report is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. This report is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. It does not constitute a general or personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual investors. The price and value of securities referred to in this report will fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of all of the original capital invested in a security discussed in this report may occur. Certain transactions, including those involving futures, options, and other derivatives, give rise to substantial risk and are not suitable for all investors. Disclaimers There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth in this report. MyPrivateBanking GmbH will not be liable to you or anyone else for any loss or injury resulting directly or indirectly from the use of the information contained in this report, caused in whole or in part by its negligence in compiling, interpreting, reporting or delivering the content in this report. Copyright MyPrivateBanking GmbH s Products are the property of MyPrivateBanking GmbH, Switzerland, and are protected by Swiss and international copyright law and other intellectual property laws. Customers are prohibited to copy, forward or store MyPrivateBanking Products outside of the legal entity that has made the purchase. MyPrivateBanking GmbH Konstanzerstrasse 60 CH-8274 Tägerwilen, Switzerland Tel For our latest reports please check: