Can Banks be Social?

HSBC as part of the skyline - China

I read an article yesterday about global financial services provider, HSBC's plans to implement a Facebook-type interface for customers.


...Britain's biggest bank is planning to create a new online platform catering for customers' non-financial needs. One industry source said: 'They want to set up their own version of Facebook.' - PR Week


Is this a step in the right direction? Financial services is one of those sectors which still have not really "gotten" social media. A lot of this has to do with the nature of the industry, which is highly regulated. During one discussion I had with a PR executive in a FTSE-100 listed financial services organisation, this was clear:


We’re not quite sure what we can do with these parameters cause as a company selling financial products, you can’t be seen as giving advice and therefore, there is a fine line. If we’re responding to somebody, are we advising them or are we just giving them information? 

In the case of HSBC, they are avoiding this proverbial fine line and hoping to use this interface for non-financial services and information, which they hope will differentiate them from their competitors.


‘Moving away from direct sales, we will build a distinct digital offering centred on customer’s future needs financial and non-financial. We will simply ask our customers to share their needs, and we will then feedback where possible to help people fulfil them [...]The social media strategy will be instrumental in not only raising awareness, but also in building the primary platform(s) for which customers will engage with the campaign. It will attract new customers while further engaging existing ones. - PR Week

HSBC is looking for agency support for this strategy at the moment, but is there any hope for success? If the company is looking to engage customers outside the parameters of what financial companies can and cannot communicate vis a vis industry regulations, then it is a good start. However, as the author of the article commented


The odds are certainly against it. There is very little historical evidence for any consumer appetite to mix financial and social activity. The dynamics of the relationship between banks and their customers are almost entirely functional and based on rational criteria.

Having had the experience in trying to mix financial and social activity for a customer base, I agree it is often challenging but certainly not impossible. Relationships do not have to be strictly "functional" or based on the necessary logistics. Customer engagement is just as important in such an area as in any other, especially when it comes to developing the overall face and brand of the organisation. And as the brief says, the company wants to gauge customers' needs. One cannot assume that they don't have other needs besides dollars and cents. Who knows what they may want! The jump off point may be a bit ambitious - a whole new interface built from scratch - but the rationale is indeed commendable.

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The Evolution of Evaluation...or is it?

On 21 April 2007, GlaxoSmithKline started a communications revolution when the pharmaceutical giant became the first company listed on the FTSE 100 share index to send a tweet.

Eight months later, on 5 December 2007, Carnival Cruises set sail on its Facebook adventure, becoming the first FTSE 100 company to establish a presence on the social networking site.

Today, 67 members of the FTSE 100 index are actively engaged in social media. 

three [d] Digital and Social Media, www.threepipe.co.uk

edit: *I spoke to the Digital Communications Manager at GSK who indicated that from "a corporate standpoint, GSK was not the first FTSE 100 company to tweet back in 2007, as we did not own any Twitter accounts then."


In an earlier blog entry, I decided that PR evaluation is often overlooked in theory and in practice and thus came my topic for my Master's dissertation. Organisations are using public relations (PR) as part of their “problem solving and change processes” (Broom, 2009, p. 285), and while many practitioners are implementing a myriad of campaigns by which to do this, there is still widespread debate about PR, and its effectiveness and value from a business perspective.

Amidst the continuing debate about the evaluation of PR, the rise of new media technologies, notably social media, offers a new challenge to PR practitioners as it relates to evaluation. Many trade associations such as the CIPR, the International Association of Business Communicators (IABC), the Public Relations Society of America (PRSA) and the Association of Measurement and Evaluation for Communication (AMEC) have consistently been asking the question, “How do you get started in measuring social media and what are the relevant metrics?” (CIPR, 2011).

My study will explore what PR practitioners across the FTSE 100 companies expect to achieve by integrating social media into their ongoing programmes and campaigns, and more importantly, how well they evaluate these objectives and what are the prevailing metrics, methods and tools used across the industry.


I have already had the opportunity to interview a few PR practitioners from large UK companies and gained some fantastic insight from them. 

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References cited:

• Broom, G.M. (2009) Cutlip & Center’s Effective Public Relations, 10th edn. New Jersey: Pearson Education Inc
• CIPR (2011) Social Media Measurement Guidance. Available at: http://www.cipr.co.uk/sites/default/files/Final_Social_Media_Measurement_Guidance%20_March_2011.pdf (Accessed: 2 April, 2011) 

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