Social Media in UK Financial Services

'Social Media in UK Financial Services' survey report

Glue Reply conducted an online survey between 15th and 31st October 2011 across a range of UK-based financial services institutions from credit card companies, to retail and investment banks and insurance companies. The objective of this survey is to cast light on the ‘state of thinking’ about social media in UK financial services.

Key Findings

Nobody believes Social media is going to go away!

All of the companies surveyed undertake some form of social media monitoring, but only half measure their social media initiatives. Only a very small number of companies have an independent strategy. More than a quarter of the companies surveyed have no separate social media budget. Almost three-quarters of the respondents were unsure about the delivery model (i.e. Software-as-a-Service (SaaS) or internal hosting).

FSA regulations in the financial services sector is forcing a cautious approach among companies.

'Supporting product/service launch’ and ‘providing information about the company' are still perceived to be the top two benefits of using social media in business. A lack of the appropriate available resources is believed by respondents to be the main hindrance to using social media.

Credit card companies lead the pack; most of them have a social media strategy, use monitoring tools and measure their social media initiatives. In terms of delivery model, they prefer Software as a Service delivery; and they are familiar with the concept of proprietary social community platforms.
 
In contrast, a few smaller building societies tended to be at the other end of the spectrum, without a specific social media strategy, yet expecting to achieve results within six months if they were to implement one.
 
Perhaps the strongest evidence of whether a company is taking a serious approach to social media can be seen in the extent of the resources/budgets/expertise devoted to it. In the survey, results were very varied, ranging from ‘No budget’ to budgets up to £250,000.
 
‘What’s the ROI and how to measure it’ – is the most common question most companies would like to have answered; and it is perhaps the most difficult.
 
Jason Hill, Partner at Glue Reply said: “Financial Services companies are playing catch up but this market is not the place for trial and error. Heavy regulation coupled with a lack of clarity from the FSA is contributing to late adoption.  Financial Services organisations are realising they too can get closer to customers, market and market sentiment by embracing Social media akin the way many retail companies have. Ultimately this could help better understand risk. Before leaping in; Financial Services companies must devise a proper strategy before using social media and answer these fundamental questions: what are the goals, who are the audience, how are we going to get to where we want to be, who is accountable for the activity and how are we going to measure it? The risk of working it out as you go along is too great.