Social Media and Institutional Banking (Part 1)
May 10, 2011 § Leave a comment
May 9, 2011 Over the next couple of months I am planning on taking a deep dive into how institutional banks use social media. At this point in the process, I have some early suspicions that my research is not going to yield much. Perhaps a Twitter account here, a Facebook account there. And I also suspect that the farther a firm gets away from a consumer the more removed from social media they will be.
As I embark upon this journey, here are my initial thoughts:
– Social Media is a complete whitespace for institutional investing
– The barriers are enormous, but there may be a significant first-mover advantage for someone
– The opportunities are not without risks, but these institutions, regardless, need to start building some competency
– Firms need to think about social media reaching people not other firms / clients / customers
Over time, the forces of social media will begin to swing the pendulum, but it will take awhile. I am really excited (believe it or not) to dig into the space. I think changes are sure to happen and it is on the minds of these institutions, but will take some time to get into the hearts (and eventually the DNA).
Any thoughts and perspectives are greatly appreciated.