Intelligent use of social data can generate enormous value for banks. Strategic use of social media can dramatically impact not only how banks market their products and services, but also how they conduct risk management, product and service design, business forecasting, and competitive analysis and customer education. Applying social analytics to the rich data sets present in tweets, blogs, posts, etc. enables banks to derive customer intelligence, understand the need for particular products and services in specific customer segments, develop marketing strategies for a new product launch and manage credit defaults and risks.

Leveraging Social Media in Banking Banks

Leveraging Social Media in Banking Banks can benefit in several functional areas by overcoming the risks and leveraging the customer behavior and sentiment, thereby allowing banks to design more personalized products and services

•  Improving customer service: Monitoring social channels will highlight challenges that customers are facing and help banks take steps to address issues before they degrade the customer relationship. Moreover, banks can use social analytics tools to anticipate how customers will respond to new strategies and take proactive steps to mitigate complaints.
•  Achieving customer delight: A dedicated social media team can make the bank more accessible and responsive to customers. Providing the right information to customers (both financial and non-financial) is likely to increase customer satisfaction and elevate the bank to trusted advisor status. For instance, an entire suite of services can be offered through social media to customers seeking a home loan, such as property selection, price comparisons, deal closure, etc. An example of a bank that is offering value-added services is ICICI Bank in India, which recently launched an app that enables Facebook users to link their debit card to their profile in order to recharge their pre-paid mobile phone connections, borrow and lend money with friends and buy movie tickets, among other functions.
• Expanding the customer base: Social media and related apps accessed via mobile devices can help banks penetrate geographies in which they have yet to establish a physical presence. By leveraging social media channels, banks can reach unbanked customers by providing them with general banking services, such as no-frills account opening services, low-denomination funds transfers, etc. Moreover, social media channels contain conversations regarding competitors’ product and services. By monitoring this information, financial sevices organizations can understand customer reaction to competitive offerings and understand which aspects of these strategies they can adopt to increase customer satisfaction and acquire new customers. Moreover, through deeper analysis of social data, they can better understand the actions they can take to convert fans or enthusiasts into advocates for their products and and services.
• Resolving issues through crowdsourcing: Many times, customers can provide the best solution to problems faced by organizations. Moreover, engaging customers to find solutions Balancing Risk, Reward Risks Rewards Transform from enterprise CRM to social CRM Resolve issues through crowdsourcing Facilitate internal collaboration Customer information security Threat to reputation Data privacy Manage risk efficiently Educate customers Achieve customer insights Expand the customer base Provide customer delight Figure 2 cognizant 20-20 insights 4 to business problems will make the customer feel more engaged with the bank and spread its goodwill further.
• Facilitating internal collaboration:  In addition to providing value to customers, social media can be used by internal employees to share information such as best practices, boosting both workforce collaboration and knowledge dissemination.
• Managing risk efficiently: Applying predictive  analytics to social data can help banks identify potential defaulters and identify market trends. The bank, therefore, can take adequate measures to shield itself from risk and business cycle volatility.

How Social Analytics Helps Banks Meet Goals

Intelligent use of social data can generate enormous value for banks. Applying social analytics to the rich data sets present in tweets, blogs, posts, etc. enables banks to derive customer intelligence, understand the need for particular

Social Media KPIs for Banking

products and services in specific customer segments, develop marketing strategies for a new product launch and manage credit defaults and risks. In this way, social analytics has transformed enterprise customer relationship management into social customer relationship management

Deploying social CRM will be the next big challenge for banks, as it will enable them to monitor and deduce meaning from numerous data types (structured, unstructured and semi-structured) and personalize their offerings according to individual customer needs. Compared with other industries, banks gather data that reveals a lot about their customers, such as spending patterns, investment choices, dependents and important dates like birthdays and anniversaries. Combining these insights with social data results in a comprehensive behavioral graph of the customer that pinpoints needs and desires, and forecasts products and services that will be required over time to address ever-changing needs