The Way for Innovating Banks to Go – Tip 7: Leverage the Power of Web 2.0, the People’s Channel

Tip 7: Leverage the Power of Web 2.0 : The people’s channel

In an earlier post, I talked of the need for channels to engage more deeply with customers. It appears that web 2.0 is tailor-made for this situation. What differentiates this channel innovation from others is its inclusivity- for this is one channel that invites and feeds off customer participation.

Today’s evolved customers want personal attention from the bank. They have high expectations and are not shy of making them known. Web 2.0 allows banks to create a space in which they can meet customers on equal terms to deliberate, collaborate and even co-create. The medium is also giving rise to social commerce, enabling peer to peer transactions besides the usual B2B and B2C varieties. And some banks are exploring ways to turn web 2.0 into another mainstream banking channel, by collaborating with handset and application vendors to deliver a virtual banking advisory cum transaction service over the mobile phone. But perhaps social media’s greatest virtue is that it makes customers feel important and powerful and brings openness to the relationship. And the fact that it can be deployed quickly, at low cost, via the SaaS route doesn’t hurt either!

Tip 1: Transform for greater reward, lesser risk
Tip 2: Make Product Innovation Customer-Centric
Tip 3: Innovate Services for Convenience and Consistency
Tip 4: Innovate with Processes for Efficiency and Improved Experience
Tip 5: Woo the Customer with Innovation
Tip 6: Take the Road towards channel innovation