Although most forms of social media are unsuitable for private banks, they are in the unique position to capitalise on building exclusive networking platforms. Christian Rhodes, the owner of digital consultancy Onomatic, says it is time to start reaping the benefits of being anti-social
While the dust settles on Facebook’s long awaited initial public offering, one thing is certain: banks all over the world will yet again agonise over what they should be doing with social media.
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So common is this occurrence it’s turning into a complex, which is now growing so strong that even the private banking industry is beginning to wonder if there isn’t a potential treasure of wealth to be discovered.
Of course, the numbers are indisputable; Facebook nearing ever closer to 1bn users and a staggering 175m tweets posted per day – evidential facts that tell us social media is commanding an ever-increasing amount of our time.
Everyone’s at it, and some of them are bound to be wealthy, right?
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By GlobalDataWealth means caution
To make sense of the data there have been a variety of surveys examining social media demographics.
The results are unsurprisingly encouraging for marketers, with few likely to dispute that the wealthy have significant access to the latest technology.
Impressive metrics and persuasive arguments aside, there is perhaps sound cause for caution and a logical reason for banks holding back from immediate action.
First, being where banks reside in people’s lives and minds: a functional necessity.
That doesn’t mean financial services is akin to detergent, but if we are realistic, nor is it at the top of most peoples’ preferred associations in the same way one might think of aspiration such as that surrounds Ferrari or Louis Vuitton.
Perhaps more pertinent is to understand how people wish to use social media, whether they are wealthy or not.
Majority of social users shy away from brands
The 2011 TNS digital life survey, a study of 50,000 people, indicated that a majority of social users did not wish to interact with brands in any way.
Of all financial services providers, private banks should know their clients and understand this fact.
If they did, they would easily recognise that the likelihood of hanging out and high-fiving their clients online in a public environment is virtually nil.
In an industry predicated on quality, discretion and personalisation, one might ask why a private bank would want it to be any different.
Technology, and its capability to simplify life, is what matters more to clients now.
Consider the transformation of online check-in for flights, where a previously lengthy, complex and human process is reduced into fewer, simple steps – evolution creates the potential for real market differentiation.
This isn’t to suggest that social media is by any means a redundant tool in wealth, and private banks have a number of areas where they can capitalise on the opportunity.
Where social media works
These are wide and varied; from listening across social media to understand where sentiment and product preference falls, to using highly targeted marketing such as offered by professional network LinkedIn.
Combining these with the functionality that HTML5 now enables, through greater interactivity within media, is a powerful and more relevant means of digital marketing.
One of the most powerful social opportunities unique to wealth providers is the ability to connect clients in a digital environment.
Social, but anti in a way that only a very selected crowd can join the conversation.
Banks might not have the licence to join in, but they can certainly provide and own platforms that provide real benefits for their high net worth clients away from public (and widely accessible) networks.
This is by no means an easy feat to pull off but it does have huge potential.
Look to the exquisitely designed ‘Path’ (www.path.com) to see an example of private yet social in practice and then consider the quality of network a private bank can provide access to.
A place to do business, combine deals or make international connections. Something that only private banks have the ability to do and compelling enough to start considering the benefits of being anti-social.
Christian Rhodes is owner of digital consultancy Onomatic
