Majid Heidari

PhD student of Media Management

Web 2.0 : In 2004, the term began its rise in popularity when O'Reilly media and Media live hosted the first web 2.0 conference. Web 2.0 basically refers to the transition from static HTML web pages to a dynamic web that is more organized and based on serving web applications .

Social Media : Social media is the social interaction among people in which they create, share or exchange information and ideas in virtual communities and networks .

Banking Sector : Banks and other financial institutions which provide lending and investments .

Generation C :Generation C phenomenon captures an avalanche of consumer generated "Content" that is building on the web, adding terapeta bytes of new text, images, audio and video on an ongoing basis .

Many customer service hotlines operate during set hours, but the same is not true of social media.

Web 2.0 technologies have transformed the way people live and work by making it easier to connect and engage online .

They have also enabled major changes in customer behavior, which in turns has revolutionized industries that have successfully incorporated these technologies into their distribution models.

Examples of these can be Trip Advisor, a site which is planning trip with social networking features.

Another example is in telecommunications, an internet service such as Skype finds success by undercutting traditional telephone operators.

Yet even as these industries and others have embraced web 2.0, retail banking has largely remained on the sidelines.

The internet has already significantly changed many aspects of banking. For example, online banking has grown substantially over the past decade, with online payment particularly.

But banks should pay more attention to the true potential of today's new technologies and tools. And as consumer preferences and expectations continue to adapt, the imperative for banks to respond with new offerings will only increase.

To retain their competitive edge, banks need to reach out to younger, more web-savvy customers ( so called Generation C, or the connected generation ), devising new products and services that are simpler and more transparent, and using the power of social networking and other digital platforms to improve their marketing.

The traditional banking model has long been made up of discrete segments, for example retail banking, mass affluent banking, and small and midsized enterprise banking. Each segment depends on several sales and distribution channels, including ATMs, branches, contact centers, the internet and mobile banking.

Each segment also offers a range of traditional products: Checking, saving accounts, long-term deposits, consumer and small business credit, mortgages, investment products and advice.

These products and services are marketed through traditional centralized functions, including brand management promotions, and sponsorships.

However several factors are converging that will force banks to reconsider every aspect of their distribution systems. With web 2.0 technologies, consumers are changing their behaviors, and they are demanding a more user-friendly, networked banking experience, one that provides a greater level of trust, transparency, and interactivity.

The bank's goal, ultimately, is to attract new, digitally savvy customers by building their confidence in banks through increased involvement. The greater loyalty such effort will generate, across all customer segments, will help banks increase revenues and compete more successfully. There are three key opportunities that await those banks that are willing to take the leap.

1.Reaching customers

In developed markets, virtually every member of generation C uses the internet and almost two-thirds use social networks to access information, entertain themselves, and stay in touch with friends and family.

Already 12 percent of this community read dedicated finance and investing forums. Despite these changes in consumer behavior, most banks still use their websites primarily to provide information and enable standard transactions, limiting real communication to branches and contact centers.

New web technologies have significantly opened up the possibilities for better communication over the internet and through smart phones. Banks could start blogs, for example, enabling discussions of specific economic developments, new services, or the latest research of interest to target customers. Active participation in social networks could increase loyalty among existing customers and attract new ones.Some Features of this issue are :

A . Relying heavily on technologies

B. Using blogs

C. Forums

D. Active presence on social networking sites to communicate with customers.

2. Reducing costs

Banks could simply shift communication to the web . It is significantly more reasonable and With lower cost than a branch setting.

3. Restoring confidence

Web 2.0 technologies help customers understand complex financial products. Online advice is a source of valued financial information. By producing video clips banks could explain their products, and also they can offer access to financial advisors through video calls.

Hosting online communities and finance-related forums on their websites, banks enable customers to discuss financial products with one another and with bank representatives.

Web 3.0

The term used to describe the evolution of the Web as an extension of Web 2.0. This definition of Web 3.0 is the popular view held by Tim O'Reilly. In contrast, Nova Spivack defines Web 3.0 as connective intelligence; connecting data, concepts, applications and ultimately people. While some call the The Semantic Web 'Web 3.0', Spivack's opinion is that The Semantic Web is just one of several converging technologies and trends that will define Web 3.0.