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BizReport : Social Marketing : June 02, 2010

Banks can boost waning consumer trust via social media

Consumer trust in banks has taken a hit during recent economic disasters but a new poll by Mintel Comperemedia indicates that by participating in social media banks can claw back some of that lost consumer faith.

by Helen Leggatt

The Mintel Comperemedia poll found that half of bank customers have less faith in their bank than they did two years ago and less than half consider their bank to be a "trustworthy organization".

The same poll found that nearly a quarter believed social networking websites to be a useful source of information for making purchasing decisions.

Mintel concluded that banks should involve themselves in social media websites as a way to connect with consumers and attract new customers. Of their respondents, 43% said they use social media websites for more than just staying in touch with the people they know and almost a quarter believed social media to be a useful source of information for making purchasing decisions.

"Nearly one in three social network users value the opinions and recommendations of family and friends over industry experts, or any other source of information," said Susan Menke, vice-president of financial services with Mintel Comperemedia.

"Banks can take advantage of that established trust to promote confidence in their brands," she added.

Tags: banking industry, online banking, relationship marketing, social marketing, social media

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