The adoption of a social banking platform by a major player in the Indian market shows that banks believe that customers banking products can be socialized. Bank CIOs will need to work with customers to develop social offerings.
On 5 December 2012, Social Money, a Des Moines, Iowa-based provider of social banking technologies, announced that ICICI Bank has launched its GoalSaver social personal financial management (PFM) platform in India. ICICI, a multinational bank headquartered in Mumbai, will use GoalSaver to enable customers to create goal-based savings accounts and share their goals with family and friends on Facebook.
ICICI's adoption of Social Money's goal-based savings platform offers early support for Gartner's recent prediction that by 30% of retail banking customers will have purchased social integrated products or services by the end of 2016 (see "Predicts 2013: External Forces Will Increasingly Challenge Banks and Investment Services Firms" ). This trend is driven by increasing consumer use of social media. Bank customers will expect to socialize what has traditionally been considered personal account information (for example, savings goals and budgets) across a variety of social media sites.
By incorporating social and PFM capabilities into products and services that extend beyond the functions on bank websites, bank CIOs can deliver more value and generate more revenue. They will need to work with their chief marketing officers and others to move their use of social media beyond marketing, customer communications and public relations to develop products and services with true social capabilities. These capabilities will be further enhanced by architecture that can connect customer goals and budgets created using PFM tools to products such as goal-based savings accounts. However, CIOs will need to incorporate these capabilities in ways that respect data privacy rights and regulatory and audit requirements.
Develop an IT strategy that enables the bank to deliver a greatly expanded range of products and services through social sites, including socialization of customers' personal financial goals, delivery of account information and person-to-person payments. Evaluate your retail delivery architecture's ability to socialize customer PFM data and deliver PFM functions across all relevant channels.
Work with the chief marketing officer and other stakeholders to develop a strategy for new products and services that integrate socialization, as well as crowdsourcing and gamification capabilities. Not all products require these capabilities, and that not all capabilities should be built into every product or service.
Monitor social software standards to support interoperability, access to and reuse of data and services across different social software environments. This interoperability will also make it possible to design more flexible, open and user-friendly services and to reduce dependence on specific single software or service vendor.
Enforce the same customer data privacy and security practices as for other delivery channels, which may require that some social sites not be supported.
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"The Future of Personal Financial Management Tools Demands Radical Changes to Bank Architecture" — PFM tools can create significant revenue opportunities for banks, but major architectural changes will be needed. By Stessa Cohen
"Use Cases for Personal Financial Management" — Deploying PFM tools that address customer-specific use cases will help banks derive tangible financial results. By Stessa Cohen