1. Social Networking and Gen Y:
Financial Institutions
Lester Chen, Jenn Weber, Matt Naber,
Ellie Weed, Ed Revis, Danny Solarz,
Gabbi LeVert, Candace Carson

2. General Overview
• Brand Interactions
• Trends
• Survey Findings
• Case Studies
– Successes
– Failures
• The future of online banking
– Cyber crime
– Mobile adoption
– Fully digital banking
• Video
1

3. By 2014 , nearly two-
thirds of all Internet
users, or 164.9
million people, will be
regular users of
social networks 2

4. 72% of 18-29 year
olds already use
social networking
sites
3

5. 71% Facebook
66% MySpace
7% LinkedIn
4

6. So Facebook is
kind of a big deal.
5

7. What kinds of
companies are
people following on
Facebook?
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8. 7

9. Financial
institutions aren‟t
the most interesting
companies to
follow. (no surprise)
8

10. How can banks do a
better job
“socializing” with
their customers?
9

11. 10

12. “Online social networks are
most useful when they address
real failures in the operation of
offline networks.”
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13. Nicolet National Bank: Improving Transparency
Used social media to become more transparent
-The President of their bank answers questions directly on
the company blog
Mortgage questions
Business loan queries
General finance questions
-Addressed their thoughts on the Troubled Asset Relief
Program (TARP), where money has gone, and why their
bank has participated.
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14. Social Media Demographics by Income Level
13

15. CASE STUDIES
14

16. 15

17. Stagecoach Island
•Similar to Sims virtual world in 2005
•Uses Second Life game engine
16

18. Players create an avatar and interact with their world
Players have a virtual banking account, can apply for loans, mortages, etc.
Aimed at youth, teaching them important budgeting skills while also
connecting and socializing with others
17

19. 18

20. Mobile Banking application
•By February 2009,
had roughly 2 million
mobile app users
•Only 4 million mobile
banking app users in
the country at the time,
•BoA had roughly
half of the market
19

21. More than 40% of active mobile bankers used iPhone or Ipod Touch
BoA believed the mobile channel was driving new business to their bank
because 8-10% of mobile bankers had opened up an account in past 90 days
20

22. 21

23. Mobile checking deposit
Customers take a picture of the front of a check with their phone
and send the info to Chase
The bank will confirm that they have received the information and
make the deposit
Customers can then shred the check
Some customers are very satisfied with new feature, while others
complain the feature still is buggy
22

24. 23

25. Bank of the Future
Featured in the Wall Street Journal on June 30, 2010
Features are already up and running in Japan and parts of
Asia, and the bank says customers love the new additions
“Tap and Pay” is a new mobile app that will transform your phone
into a mobile wallet; customers will add their credit card info to
their phone, and when in physical stores the customers can just
tap the machine with their phone
Transaction is recorded, with a receipt and warranty sent to phone
24

26. Interactive Media Wall
“Sales Wall” - Customers can flip through products on large touch
screen that resembles iPhone. Customers can then apply for the
product right on the screen or scan the information to their phone
25

27. “Work Bench”
Video agent can talk customers through transactions and
give them personal, real-time service
Service will be in U.S. banks in the next 2 years
“Citishopper” is an app that gives consumers product
reviews, the best price in the area, and whether or not the
product is in stock
26

28. 27

29. Is smarter banking
better banking?
28

30. If so, what role do
social networks
need to take on?
29

31. FACT:
People don’t want to
But everyone needs some
advice every now and then…
share their personal
banking information
with the world
30

32. Small Business Online Community
31

33. Connect, connect, connect
32

34. Tips Forums
Find Experts Articles
Share Business Stories
Events
Expand customers‟ relationships with your bank
without violating the their sense of security
Because let‟s face it, banks are not the most
trusted institutions in America right now
33

35. Taking your offline
community online
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36. • “Mobank” has only three branches where people are highly
invested in their community
• Not using social media to “sell” anything, but rather using it to
build stronger ties with their customers.
“Being a Mobank customer is very
much like being part of the „in‟ group.”
Grant Burcham,
Missouri Bank President and CEO.
35

37. People hated talking to
Customer service 36

38. But not anymore.
37

39. 38

40. Promote services
Create awareness
Responses, quick responses
Little questions
39

41. 40

42. 41

43. Survey Says (n=47)
Seen an ad for a bank on social Does your bank have its own
media social media website?
21% 12%
15%
Yes
Yes No
No 73% Don't Know
79%
42

44. Where are social
networks headed?
43

45. F acebook‟s recent policy changes are merely the
latest in a long list of transgressions against user‟s
privacy
The “Like” Button: Allows Facebook information to be
more easily shared. BUT – it has also made public its
“social graph”, which allows outside websites able to
access info about users freely.
44

46. Cybercrime
45

47. 80% of U.S.
households have come
to do their banking over
the Internet
46

48. A 2009 ABA survey of 170 U.S. bank
revealed that 85% of big banks are
incurring losses stemming from cyber
attacks on consumer online accounts
47

49. Most frequently attacked banks in the world
ranked
3rd
ranked
7th
48

50. And this is what
Chicago thinks
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51. 50

52. Thank for watching!
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