1. Social Media: Fear and Loathing in Banking

2. Adoption of Technology Banking is slow to adopt technology: – New is usually bad – Clients aren’t using it – Too Risky Just too scary!

3. Social isn’t the first disruptive technology to scare bankers…

4. ABACUS

5. INTERNET

6. INTERNET BANKING Usage - Americans adopted online investment services before online banking, exactly the opposite of Europeans. Risk - Most banks opted for litigation over adoption of internet banking. Strategy - Huge problem for banks, internet payments gave credit card companies a big weapon against banks.

7. Reputation Risk Regulatory/Compliance Risk Negates the shroud of ambiguity that surrounds financial services Social Media Social Media (aka “Bob”)

8. Bank Reaction to Social Very few banks have adopted social media Social media can adversely affect brand and reputation. – The number of consumer-driven anti-Bank of America blogs, for example, is a public relations disaster. Abdicating authority to others Industry publication American Banker doesn’t use social Bob and a banker

9. …and then there is Wells Fargo

10. Embracing it all

11. Wells is using social for: Client service Marketing – Banking best practices – Product knowledge – Lifestyle/Life-stage information

12. Social Media Serving the Strategy Source 2001 Forrester Research

13. References Deragon J. (December 18, 2009). How “Social” is Your Bank? Social Media Today retrieved November 1, 2010 from: http://www.socialmediatoday.com/jderagon/110884/how-%E2%80%9Csocial%E2%80%9D- your-bank Deragonhttp://www.socialmediatoday.com/jderagon/110884/how-%E2%80%9Csocial%E2%80%9D- your-bank Social Media and the Banking Industry. Social Media Today retrieved November 12, 2010 from: http://www.socialmediatoday.com/ClientFiles/2b461d74-0b05-4149-a6fd- 33257181a2c7/SMbanking_v1.pdf http://www.socialmediatoday.com/ClientFiles/2b461d74-0b05-4149-a6fd- 33257181a2c7/SMbanking_v1.pdf (November 3, 2010 ) Why Social Media Is a Waste of Time for Most Banks & Credit Unions. Financial Brand.com retrieved November 12, 2010 from: http://thefinancialbrand.com/Why Social Media Is a Waste of Time for Most Banks & Credit Unionshttp://thefinancialbrand.com/ http://blog.wellsfargo.com/ retrieved November 2, 2010 http://blog.wellsfargo.com/ http://www.openforum.com/ retrieved November 2, 2010 http://www.openforum.com/ Sherwood, Catherine (March 18, 2010). Financial Services & Social Media