WEALTH MANAGEMENT AND SOCIAL MEDIA - … - MyPrivateBanking... · ABN AMRO (including MeesPierson), Bank of America ... WEALTH MANAGEMENT (max. 26) Rank Bank Total Rank Bank Total

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SOCIAL MEDIA FOR BANKING AND WEALTH MANAGEMENT 2014 THE GAP IS WIDENING

December 2014

MyPrivateBanking Report 4th edition

Report Extract Original Report with 171

pages plus comprehensive data appendix

SOCIAL MEDIA FOR BANKING AND WEALTH MANAGEMENT 2014 | 2

CONTENTS TABLE OF FIGURES 5

1.0 EXECUTIVE SUMMARY 6

2.0 RANKINGS 9 2.1 OVERALL RANKING 9 2.2 RANKING BY SECTION 10

3.0 METHODOLOGY 11 3.1 SELECTION OF BANKS AND SOCIAL MEDIA CHANNELS 11 3.2 DEFINITIONS OF PERSONAS AND USE CASES 13 3.3 EVALUATION PROCEDURE 14 3.3 DETERMINING THE CRITERIA 15

4.0 STRATEGY 23 4.1 INTRODUCTION 23 4.2 THE SUCCESS AND SCOPE OF SOCIAL MEDIA 24 4.3 THE USES THAT BANKS CAN AND DO PUT SOCIAL MEDIA TO 26 4.4 THE CORE SOCIAL MEDIA CHANNELS FOR BANKS 28 4.5 TOP LEVEL IMPRESSIONS FROM MYPRIVATEBANKING’S

BANKING SOCIAL MEDIA RESEARCH 30 4.6 CUSTOMER SERVICE VIA SOCIAL MEDIA 35 4.7 HELPING USERS TO FIND THEIR WAY AROUND –

A FEW WORDS CAN MEAN SO MUCH! 37 4.8 THE GROWING IMPORTANCE OF VISUAL SOCIAL MEDIA 39 4.9 LOCAL AND PERSONAL LEVEL SOCIAL MEDIA 40 4.10 WHAT’S THE RIGHT BALANCE BETWEEN CONVENTION AND

ORIGINALITY IN SOCIAL MEDIA? 42 4.11 WHAT IS REQUIRED FOR AN EFFECTIVE BANKING SOCIAL

MEDIA STRATEGY? 43

5.0 SUMMARY OF FINDINGS 45 OVERALL SOCIAL MEDIA COVERAGE HAS SIGNIFICANTLY INCREASED

SINCE 2012 45

CORPORATE AND INVESTOR RELATIONS SOCIAL MEDIA: WEAK ON FACEBOOK, STRONG ON LINKEDIN 46

RETAIL SOCIAL MEDIA: GOOD PERFORMANCE ON FACEBOOK, POSITIVE SURPRISES ON PINTEREST 50

WEALTH MANAGEMENT SOCIAL MEDIA: WEAKNESS PREVAILS 55

SOCIAL MEDIA STRATEGY AVAILABLE FOR MOST BANKS 59


6.0 PROFILES 61 6.1 ABN AMRO (INCLUDING MEESPIERSON) 61 6.2 BANK OF AMERICA (INCLUDING MERRILL LYNCH) 66 6.3 BARCLAYS 71 6.4 BNP PARIBAS 76 6.5 BPCE (INCLUDING CAISSE D’EPARGNE AND BANQUE POPULAIRE 81 6.6 CITIGROUP 86 6.7 CRÉDIT AGRICOLE 91 6.8 CREDIT SUISSE 96 6.9 DEUTSCHE BANK 101 6.10 GOLDMAN SACHS 106 6.11 HSBC 110 6.12 ING 115 6.13 JP MORGAN CHASE 120 6.14 LLOYDS BANKING GROUP (INCLUDING BANK OF SCOTLAND) 125 6.15 RBC 129 6.16 RBS (INCLUDING NATWEST AND COUTTS) 133 6.17 SOCIÉTÉ GÉNÉRALE 137 6.18 UBS 141 6.19 UNICREDIT 146 6.20 WELLS FARGO 151

7.0 SOCIAL MEDIA BEST PRACTICES IN BANKING 156 7.1 CORPORATE SOCIAL MEDIA PRESENCES 156 POWERFUL VISUAL STREAM ON FLICKR: UBS AND XXX 156

STRATEGICALLY PROMOTING AN OFFICIAL TWITTER STREAM: XXX AND XXX 157

COHESIVE CORPORATE SOCIAL MEDIA STRATEGY: XXX AND XXX 158

7.2 RETAIL 159 OUTSTANDING CUSTOMER SERVICE ON A TWITTER STREAM: XXX 159

CAPTIVATING IMAGES ON PINTEREST: XXX 160

ENHANCING COMMUNICATION VIA SOCIAL MEDIA PLATFORMS: XXX AND XXX 161

INTRODUCTING THE SOCIAL MEDIA TEAM ON TWITTER: XXX AND XXX 162

7.3 WEALTH MANAGEMENT 163 INNOVATIVE STRATEGY FOR WINNING WEALTH CLIENTS: XXX AND XXX 163

PINTEREST BOARD FOR INFOGRAPHICS: XXX 164

EXEMPLARY LINKEDIN PRESENCE: XXX 165

PERSONAL LEVEL TWITTER STREAM: XXX 166


7.4 SOCIAL MEDIA STRATEGY 167 INNOVATIVE PRESENTATION OF SOCIAL MEDIA PORTFOLIO AND UPDATES: XXX 167

QUICK OVERVIEW OF SOCIAL MEDIA PORTFOLIO: XXX 168

BREADTH AND COMMITMENT OF THE SOCIAL MEDIA STRATEGY: XXX 169

8.0 AUTHORS 170

9.0 DISCLAIMER 171


TABLE OF FIGURES

Broadcasting service information via Twitter 26

Social Media – the Success Story 27

General Electric projecting corporate self-belief via Instagram 30

This offer is finished but BNP Paribas promises that there will be more! 34

Bank Customer Service Twitter Stream 35

Facebook harnessed to help with the (hugely controversial) GM ignition vehicle recall 36

Banque Populaire, part of BPCE promotes its ‘Route de Rhum’ sponsorship through Instagram 39

Personal level Twitter stream (RBC) 40

ABN AMRO MeesPierson Financial Focus websites 61

Bank of America Pinterest page (“Better Money Habits”) 66

Barclays Customer Service Twitter channel @BarclaysOnline 71

BNP Paribas retail Facebook presence 76

The interactive social media menu on Groupe BPCE’s home page 81

Citi official Twitter channel 86

Crédit Agricole Pinterest presence 91

Credit Suisse Flickr photo stream 96

Deutsche Bank LinkedIn presence 101

Goldman Sachs LinkedIn presence 106

HSBC Official Twitter stream 110

From the YouTube video of ING NL CEO, Nick Jue’s Google+ hang out with customers 115

J.P. Morgan official Twitter stream 120

Lloyds Bank Facebook presence 125

The RBC Next Great Innovator Challenge Facebook page 129

Coutts LinkedIn presence 133

Société Générale So Music Facebook presence 137

UBS Flickr photo stream 141

UniCredit Google+ presence 146

Wells Fargo retail Facebook presence 151


1.0 EXECUTIVE SUMMARY >> Over the last two years banks have improved their overall presence in social media, as the 20 leading banks worldwide have at least one presence on the major channels like Facebook, LinkedIn and Twitter. There are also encouraging levels of engagement with the visual social media channels Instagram and Pinterest. For instance, 95% of banks can boast a Facebook page targeted at retail clients and 90% have a dedicated Twitter stream, compared to 66% and 72% in 2012 respectively. But the bad news is that the banks’ social media activities are unevenly distributed and the quality of content remains, on average, unsatisfactory. <<

These are the main findings of the fourth global ranking of the social media presences of 20 leading banks and wealth managers in the report “Social Media for Banking 2014: The Gap is Widening”, conducted by the Swiss research company MyPrivateBanking Research.

The leading banks in MyPrivateBanking’s overall social media ranking are Barclays and UBS (each with 65 points out of a maximum of 90 points) followed by Société Générale (64 points) and ABN AMRO (63 points). This group of leaders shows particular strengths in the areas of originality and innovation and customer service. The winners for the best social media presences in the areas of retail banking, wealth management and coporate/investor relations are as follows: Wells Fargo has the best retail bank social media presence (90% of maximum possible points), Barclays is the social media leader in Wealth Management (88% of maximum possible points) and Deutsche Bank can boast the best social media for its corporate unit and investor relations (92% of maximum possible points).

On average, the retail banks are the leaders as they achieve 67% of the maximum possible points, while the corporate and investor relations divisions come out weaker at 62%. However, the wealth management and private banking divisions have by far the poorest results with an average score of only 42% of the maximum possible points.

While overall the use of social media by banks and wealth managers made some progress, we found that there was a significant disparity between the offerings for retail clients and what banks provide to their wealthiest clientele. While the retail offering is of satisfactory quality, high-net-worth clients are in many cases put off by social media that is not interesting, not up-to-date and not interactive. This reflects a misperception by banks that social media is only used by members of the millennial generation, which is a great mistake as our research shows that social media is increasingly used by more senior and wealthier customer segments.


The following list of weaknesses in banks’ social media activities features only a fraction of the shortcomings that are identified and analyzed in the MyPrivateBanking report:

□ Social media presences strong in retail banking, weak in wealth management and on the corporate level: (… more in full report)

□ The level of interaction with users on most social networks is not satisfactory at all. (… more in full report)

□ Quality of content very unbalanced: (… more in full report)

□ Shortage of links from social media presences to the rest of the banks’ digital offerings on websites or other channels. (… more in full report)

We are concerned about the common tendency for banks to avoid providing adequate coverage of their business on social media and the lack of exchange with their clients and stakeholders on these platforms. A high proportion of banks are failing to supply enough news about themselves and all too many social media presences are lacking in information about new products and services or changes to existing ones. Nevertheless, MyPrivateBanking found it encouraging that about 90% of the banks covered by our report have at least made an effort to formulate an explicit media strategy and communicate it to their clients and stakeholders.


Based on their research analysis, MyPrivateBanking recommends the following top-five strategic measures for banks to improve their social media standing and strengthen their footprint on the most important social networks globally:

□ Wealth managers and private banks in particular must take a more holistic view of social media (… more in full report)

□ Banks should provide corporate Facebook pages (… more in full report)

□ Banks need to increase the frequency of content publication over nearly all channels, (… more in full report)

□ Banks should make sure to engage visitors on social media (… more in full report)

□ Banks’ marketing departments need to talk more about products and services (… more in full report)

Analyzed Banks:

ABN AMRO (including MeesPierson), Bank of America (including Merrill Lynch), Barclays, BNP Paribas, BPCE (including Caisse d’Epargne and Banque Populaire), Citigroup, Crédit Agricole, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, ING, J.P. Morgan Chase, Lloyds (including Bank of Scotland), Royal Bank of Canada, Royal Bank of Scotland (including NatWest and Coutts), Société Générale, UBS, UniCredit; Wells Fargo


2.0 RANKING 2.1 OVERALL RANKING

Rank Bank Total Points (max. 90)

Corporate & Investor Relations (max. 24)

Retail (max. 31)

Wealth Management

(max. 26)

Social Media

Strategy (max. 7)

Best Practices (max. 2)

1 Barclays 65 … … … … …

1 UBS 65 … … … … …

3 Société Générale 64 … … … … …

4 … 63 14 24 16 7 2

5 … 62 18 26 9 7 2

6 … 60 20 15 17 6 2

6 … 60 7 28 17 6 2

8 … 59 21 26 6 6 0

9 … 58 14 21 14 7 2

9 … 58 12 19 20 6 1

11 … 57 13 27 8 7 2

12 … 55 14 21 14 5 1

13 … 53 12 24 10 5 2

13 … 53 14 24 7 6 2

15 … 50 15 20 9 4 2

16 … 49 22 16 4 6 1

17 … 47 15 22 3 6 1

18 … 42 18 18 0 5 1

19 … 29 8 17 0 4 0

20 … 28 14 2 7 4 1

AVERAGE 53.85 14.8 20.9 10.8 5.85 1.5


2.2 RANKING BY SECTION

CORPORATE

(max. 24)

RETAIL

(max. 31)

WEALTH MANAGEMENT

(max. 26)

Rank Bank Total Rank Bank Total Rank Bank Total

1 Deutsche Bank …

1 Wells Fargo …

1 Barclays …

2 UBS …

2 Crédit Agricole …

2 RBS/Coutts …

2 Citigroup …

3 Société

Générale …

3 Credit Suisse …

4 … 20

3 … 26

3 … 17

5 … 18

3 … 26

5 … 16

5 … 18

6 … 24

5 … 16

7 … 15

6 … 24

5 … 16

7 … 15

6 … 24

8 … 14

9 … 14

9 … 23

8 … 14

9 … 14

10 … 22

10 … 10

9 … 14

11 … 21

11 … 9

9 … 14

11 … 21

11 … 9

9 … 14

13 … 20

13 … 8

14 … 13

14 … 19

14 … 7

14 … 13

14 … 19

14 … 7

16 … 12

16 … 18

16 … 6

16 … 12

17 … 17

17 … 4

18 … 11

18 … 16

18 … 3

19 … 8

19 … 15

19 … 0

20 … 7

20 … 2

19 … 0

∅ 14.8 ∅ 20.9 ∅ 10.8


3.0 METHODOLOGY 3.1 SELECTION OF BANKS AND SOCIAL MEDIA CHANNELS

This study analyzes the social media activities of the 20 leading global banking groups. The 20 providers that were analyzed are the biggest banks and wealth managers worldwide, ranked by total assets on the balance sheet. Only banks which met a certain minimum threshold of social media implementation were included in the evaluation.

(... more in full report)


3.2 DEFINITION OF PERSONAS AND USE CASES

Based on our published body of research and acknowledged industry user experience standards, our analysts have developed five core use cases.

‘Use case’ originated as a software and systems engineering term to signify the actions a

user must take to achieve a specific result. The term can also be applied to user interfaces

in website tests and comparisons, as we have done in our study. By ‘use case’ we mean a

typical scenario of how and why certain user groups approach social media. We have

derived our detailed evaluation criteria and their weightings directly from these five use

cases:

Use Case User Group Objective


General public, journalists, existing and potential clients



Potential clients (... more in full report)


All kind of user groups: general public, journalists,

existing and potential clients, applicants, suppliers,

shareholders





Existing and potential clients

Existing clients

Existing and potential clients





3.3 EVALUATION PROCEDURE

The social media activities of the banks were analyzed by two analysts, independently of each other and the analysis and evaluation were repeated after an interval of five to seven weeks. This was done to minimize the probability of misleading evaluations due to a purely subjective point of view or accidental website or Internet problems at a certain point in time. Also, given the quantity of information that needed to be analyzed, the possibility of not finding all the relevant information for individual members of the target group could not be ruled out. Double checking through having two evaluators working independently removed this danger. All findings were collected during the months of October and November 2014 and represent the status of social media presences during this period only.



3.4 DETERMINING THE CRITERIA

In this study, the overall criterion for evaluating the social media is the extent to which

the bank’s social media meets the use cases described above, from the point of view of

various users. From this the following individual criteria were developed: up-to-datedness,

level of engagement and interactivity with the user, followership rates, possibility for

feedback and commenting, responsiveness to comments and criticism, and level of

interlinking between the social media channels. Overall, a score of 90 points was the

maximum. Points were awarded during October and November 2014 (snapshot principle).

What follows are descriptions of the evaluation parameters with the detailed criteria and

maximum achievable points. In comparison to the 2012 and 2013 reports, there were a

number of significant changes in MyPrivateBanking Research’s rating scheme. These

changes include alterations in the weighting of important areas such as social media for

wealth management given the new enlarged focus on newly introduced sections for

corporate and investor relations and retail banking, as well as new individual criteria

relating to the overall social media strategy of a bank like authenticity checking or

responsiveness to negative feedback.

The banks surveyed could score points in the following areas:

□ Corporate& investor relations (max. 24 points)

□ Retail (max. 31 points)

□ Wealth management (max. 26 points)

□ Social media strategy (max. 7 points)

□ Best practices (max. 2 points)

□ TOTAL: maximum 90 points

Corporate & investor relations

Facebook presence (max. 8 points)


LinkedIn Profile (max. 6 points)


Twitter Stream (max. 7 points)

(… more in full report)

YouTube Channel (max. 3 points)



Retail







Google+ presence (max. 2 points)


Pinterest, Instagram or Flickr (max. 3 points)


Wealth management



LinkedIn Profile (max. 7 points)



(…more in full report)



Social Media Strategy (max. 7 points)

(… more in full rep0rt)

Best Practice (max. 2 points)



3.0 STRATEGY (… more in full report)


4.0 SUMMARY OF FINDINGS (… more in full report)


5.0 PROFILES (… more in full report)


6.0 SOCIAL MEDIA BEST PRACTICES IN BANKING (… more in full report)


7.0 AUTHORS

Steffen Binder, Managing Director and co-founder of MyPrivateBanking Research. Steffen is Head of Research and oversees the research agenda and analyst teams. He is responsible for creating and developing powerful concepts and relevant content to help our clients navigate a rapidly changing digital environment. As a regular speaker at finance and technology industry events around the globe, Steffen is frequently quoted by leading business media such as the Wall Street Journal, Handelsblatt and the Financial Times. Prior to this, Steffen was Managing Director of Forrester Germany, Switzerland and Austria. He came to Forrester through its acquisition of Forit GmbH, a leading European

technology research company, of which he was also a co-founder. Prior to that, Steffen was a partner at Monitor Company (Strategy Consulting). He holds Master’s Degrees in Organizational Behavior from Rutgers University (USA) and in Public Administration from the University of Konstanz (Germany).

Francis Groves, Senior Analyst, is a team lead for the research on vendors, mobile apps and online services. His specific research interest is communication and understanding in relation to finance topics and investor motivation. He has over 30 years of experience in the field of online business information, having worked for Reuters, the Financial Times and LexisNexis. Francis speaks at conferences and events and has published several books and articles. Among them 'Corporate Actions, A Concise Guide' and 'Exchange Traded Funds, A Concise Guide to ETFs'. Francis has a degree in History, which he studied at the London School of Economics.

Roxana Palade, Analyst, specializes in research in the fields of mobile apps for wealth management and online presences of wealth managers. Her specific interest are in the areas of Web 2.0 technologies, vendor management and data mining. Roxana has held a number of research positions in business and academia in Germany, India and Romania. She has a Master’s Degree in British and American Studies from the University of Konstanz (Germany) and a Master’s Degree in Literature from the Alexandru Ioan Cuza University, lasi (Romania).


8.0 DISCLAIMER IMPORTANT NOTICE AND DISCLAIMERS:

No Investment Advice

This report is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. This report is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. It does not constitute a general or personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual investors. The price and value of securities referred to in this report will fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of all of the original capital invested in a security discussed in this report may occur. Certain transactions, including those involving futures, options, and other derivatives, give rise to substantial risk and are not suitable for all investors.

Disclaimers

There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth in this report. MyPrivateBanking GmbH will not be liable to you or anyone else for any loss or injury resulting directly or indirectly from the use of the information contained in this report, caused in whole or in part by its negligence in compiling, interpreting, reporting or delivering the content in this report.

Copyright

MyPrivateBanking GmbH’s Products are the property of MyPrivateBanking GmbH, Switzerland, and are protected by Swiss and international copyright law and other intellectual property laws. Customers are prohibited to copy, forward or store MyPrivateBanking Products outside of the legal entity that has made the purchase.

MyPrivateBanking GmbH Konstanzerstrasse 60 CH-8274 Tägerwilen, Switzerland Tel. +41 71 566 10 05

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WEALTH MANAGEMENT AND SOCIAL MEDIA - … - MyPrivateBanking... · ABN AMRO (including MeesPierson), Bank of America ... WEALTH MANAGEMENT (max. 26) Rank Bank Total Rank Bank Total