Banking on Facebook
ASB is killing Facebook compared to its big banking rivals with more than 160,700 followers. Only ANZ (just under 124,400) comes close, followed by Kiwibank (just under 77,700), Westpac (just over 72,000), and Bank of New Zealand (just under 50,000).
That’s a combined bank following of just under half a million people.
What exactly are they following the banks for? The answer appears to be a mix of ‘‘social badging’’ (identifying as a Kiwibank customer might be a demonstration of their ‘‘true’’ Kiwi identity), staying informed, getting quick responses to complaints, and well, just because we are Kiwis and more likely than other nationalities to follow businesses.
Facebook provides the banks with a news channel they can use to highlight their good work – for example, ANZ’s sponsorship of the Kiwi Commonwealth Games team.
It also lets them tout their technological advances, such as when ASB announced it was testing facial scans as a way to let customers open accounts via their mobile phones.
British bank Lloyds has only 40,000 more followers than ASB, despite claiming to have around 22 million retail clients.
ASB also outpunches its Australian parent, Commonwealth Bank of Australia, on a followers to population ratio.
Banks have a finger in every pie, bringing them into contact with doers and achievers such as business leaders they have loaned to, and sports people they have sponsored.
They also have paid brand ambassadors (Westpac has Richie McCaw, Sir John Kirwan, Sophie Pascoe and Willie Apiata; ANZ has Eric Murray, Lydia Ko, Hamish Carter and Sam Webster), or associate themselves with leaders not on the payroll, such as Kiwibank’s sponsorship of the New Zealander of the Year awards.
Banks also have the resources to use these relationships to maximum effect.
Videos on bank Facebook sites often have very little to do with banking, and a lot to do with building a feel-good image for banks.
BNZ, for example, has its own film studio, so promoting its Closed for Good community initiatives is a seamless business.
The law may prohibit businesses from seeking to cash in on Anzac Day, but it doesn’t prevent banks from associating themselves with the event on Facebook.
Customers seem to like this. Kiwibank’s ‘‘Thank you for your service’’ video garnered 85,000 views, and hundreds of likes.
Westpac: ‘‘Did you know that 135 courageous Kiwis lost their lives liberating Le Quesnoy, France in World War I? There are many brave stories like this one to be remembered this Anzac Day. We’re proud to support the New Zealand War Memorial Museum in remembering Kiwis’ involvement in both world wars.’’ (176 likes. Thumbs up. Heart symbol. Sad face.)
Another advantage to customers is that complaining across Facebook brings an instant reaction. This is also a way to bypass contact centres with their near-constant ‘‘We are experiencing high call volumes . . .’’ messages.
ASB also has a ‘‘Facebook branch’’ where Facebook users can chat, and do banking with online bank tellers.
Opening hours are 8am to 8pm Monday to Friday, and 9am to 5pm on the weekend.
Banks might be giant sales machines (mortgages, credit cards, etc), but they are also a source of financial literacy education.
Topics hit by Westpac’s Red News on Facebook in recent weeks include travelling overseas for dental treatment, pets in rentals, electric cars and term deposits.
Kiwibank is currently partnering making TV programmes with Nigel Latta, and its Facebook page is heavily promoting his Mind Over Money show on TVNZ 1.
However, although Facebook provides banks with a communication platform, it could one day soon be a very powerful competitor.
As the world moves to ‘‘open banking’’, the GAFAMs (Google, Apple, Facebook, Amazon, Microsoft) and the BATs (Baidu, Alipay, Tencent) will be well placed to step in.