Banks could boost customer satisfaction with social media

U.S. financial institutions' service efforts are generally paying off in customer satisfaction and loyalty, according to a new Consumer Banking Relationships study by BAI.

U.S. financial institutions' service efforts are generally paying off in customer satisfaction and loyalty, according to a new Consumer Banking Relationships study by BAI. While most consumers say they would recommend their bank or financial institution to someone else, they report that there is room for improvement.

Surveyed consumers said they would like their banking institution to approach them with products and services that meet their financial and investment management needs.

"These findings are critical as financial institutions shape their strategic priorities to focus on building stronger relationships with customers," says Debbie Bianucci, president and CEO of BAI.

Banks could improve their customer relationships by engaging consumers in a channel that has thus far gone untapped - social media. Sonia Kolesniknov-Jessop writes for The New York Times that banks and financial institutions have been hesitant to embrace social media sites - such as Facebook, Twitter and YouTube - in order to reach customers. Social media can be an effective mode of communication for financial institutions, Marged Lloyd, the head of online communications in London at Standard Chartered Private Bank, told the source.

Many banks have a lot of ground to gain since one in three do not have an active Facebook profile and only half of those are actively using the sites to communicate with clients, according to a survey by Assetinum.com.