A Look at Bank Blogs

According to the study of over 3,500 consumers, one in five online consumers read blogs, yet blogs are offered by less than 1% of financial institutions. Result: banks are largely losing control of discussion about themselves in the ‘blogosphere’. Old-line bankers will find that none of the long-standing customer interaction rules apply to blogging, yet the new capability offers crucial, low-cost marketing benefits available through no other method.

James Van Dyke, President and Founder of Javelin, notes, “Blogs are quickly becoming vital to many consumers that seek advice or opinions on a variety of topics with a more informal tone. Financial Institutions need to realize that brand management, customer-centricity and loyalty can be strengthened through a blog at relatively little cost, but only if the new rules are understood by established bankers.“

In the first industry report of its kind, Javelin combines three research methods: nationally representative quantitative consumer research, executive interviews and case studies of successful FI blog implementations from institutions such as Verity CU, Wells Fargo, Vancity CU and four others. According to study author and research analyst Jean Garascia, “Blogging only brings risks to financial services executives that are unprepared, and banks must not miss out on a way to positively impact their brand through this unique online communication mode by dismissing it without a full evaluation. Successful blog sites require preparation and research of both consumers and peers, and can pay big dividends through higher customer interaction levels.”