Excellent new piece of proprietary research from Forrester here on the impact of Social Computing on Banks, and what we need to do about it.

Forrester Research: Social Computing's Impact On Financial Services

Peer-to-peer technologies like user review sites, discussion forums, and blogs are contributing to a new era called Social Computing that empowers individuals at the expense of institutions like retail financial services firms. As consumers use the Net to share information, financial brands risk being undermined as marketers lose control of the message.But it's not all bad news for financial firms. Smart firms will use the same emerging technologies to communicate with customers, gather customer insights, and develop stronger customer relationships.

Cliffs piece goes on to suggest Banks and financial firms get into all the things that Banks hate – forums, blogs, comparison shopping etc. All the things that customers want and expect as they develop along their individual buying paths, and as they educate themselves as to what is right for them. He goes on to say "Social Computing is changing consumers' financial behavior, brand
loyalty, and the nature of their relationships with financial services
providers for good. The long-term impact on financial services will be
substantial."

Relevance to Bankwatch:
The smart banks will see internet as the next marketing frontier, but they will apply new models to marketing online. This new model is not about clicks and conversion. Rather it is about permeating the community, being observant of the community, figuring out where their community is online and participating; all the while as part of the observation, and participation, taking the lessons back and improving the banks products and services.

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