Transparency challenges new revenue and friction In September of 2009 Ann Minch, a customer of Bank of America, posted a video on YouTube called the “Debtor’s Revolt”. Ann detailed her case against BofA who had unilaterally increased her credit card APR (Annual Percentage Rate) to 30% from its historical 12.99% – quite a jump. She [...]
Ok, so the feedback from Finextra’s #finxsm event this week is that we’re finally coming to grips with the fact that Social Media isn’t going to disappear into the night like some passing fad. Good news! It’s interesting though, whenever a major disruptor like social media, the internet, etc has come along, inevitably there are [...]
This is the dilemma. Today there are those of us trying to improve customer experience, knowing full well that compliance departments are citing risk mitigation, regulations and laws, bank policy and procedures, and other such issues as reasons why innovators can’t release a new mobile app, engage in social media conversations in real-time with customers, and so forth. In the meantime, there are existing processes, procedures and systems that are far more riskier than things like social media, but they are immune to the compliance department’s gaze because they are already in place.
What is riskier? Participating in the social media conversation and doing something within the guidelines established, or doing nothing for fear of the possible risks associated with real-time responses to clients in the online world?
As President Obama was gearing up last month to push further reforms for the finance sector through congress, the sector lobbyists were also gearing up for a battle of PR wits to try to prevent changes that threaten the status quo. Senior industry players like Jamie Dimon were extremely vocal in challenging the president’s push for greater regulation.
The mantra of “too big to fail” was the protection the big banks were all hoping to fall back on, and this call was certainly an underlying foundation of the bailout and TARP initiative in the US. The fear that if the biggest banks fail, the economic repercussions would be so serious that it is less costly and more economically prudent to bailout big banks so the economy didn’t get hurt further. Such sector lobbying and grandstanding is a fairly standard reaction to such government intervention, as we’ve seen time and time again.
But will social media have the last word in this battle?…
The 2.0 phenomenon is going strong. Despite Facebook’s unbridled success, Twitter storm to the popular vernacular and FourSquare recent burst, some traditional marketers, bankers and observers still don’t get what all the fuss is about. But increasingly they will do…