WHY BANKS AND SOCIAL

MEDIA SHOULD BE FRIENDS

www Emerson Studios, 4-8 Emerson Street, London SE1 9DU

T 0203 141 7700

BANKS GET SHORT SHRIFT. YOU DON’T DESERVE IT. Yet there is a particular marketplace where perhaps you do. But for reasons other than you may think. Just consider the SME marketplace. (We know you are.) It’s a healthy, growing sector. You’ll know the stats:

• SMEs employ almost two-thirds of people in the private sector• they generate half its turnover• but…only a small fraction of those SMEs (c.10%) create nearly 70% of new jobs

These 10 per-centres are the high-growth companies that you should be targeting.

HERE'S A LOVELY STORY.

AND IT’S ALL ABOUT YOU. IT’S ALMOST A FAIRY STORY.

ABOUT BANKS AND AN OPPORTUNITY THAT’S WAITING TO BE SEIZED. AND

SO PROVIDE A HAPPY ENDING.

SO, HERE GOES:IT COULD BE YOU

Once upon a time, banks had something called 'relationship banking'. It was all about servicing SMEs. Of which there are zillions. And something which L&G is just going to embark upon. But not at the S level of SMEs. Cherry pickers.

Relationship banking for SMEs was about local, focused managers. People who understood the demands of small businesses and the environments in which they operated and offered business banking advice and products. And anything else.

Alas, these bank managers are no more. But we think things are about to change.

Banks, we read, are now going through wholesale re-training exercises. 'Talent management programmes', as they're called. Entirely brought about by the last few years' "issues".

We’re telling you your business. What must you

think of us! But this is why we’re being so

brazen. If you want to call it that. We call it

proactive.

HERE’S WHY:

SO WHAT'S THE OPPORTUNITY? Can the circle be squared? Yes. We believe these high-growth companies (MEs) are found in every sector of the economy and across the UK. These are the your target audiences. Talk to them. Not the zillions.

HOW DO YOU BEST DO THIS? Providing finance on a sound commercial basis, rightly, will always be banks' primary concern. But providing advice, help and information –- useable, useful and business-supportive advice – should be considered an equally valued service aid to all SMEs in times such as these. Especially as UK Ltd 'turns the corner'.

HOW MUCH HISTORY, KNOWLEDGE, HERITAGE, KNOW-HOW AND GENERAL EXPERIENCE MUST BANKS LIKE YOU HAVE WHICH COULD BE TRANSLATED INTO USEFUL CONTENT?

In short, play to your strengths: (a) not only to win them over (and win them back), but (b) also talk to them in their own language about things they’re interested in. ?

IN THE MONEY

Well, you have money. You need to lend it. You want new business. Of course. And there’s a large untapped market. Full of hungry SMEs. But with one segment where the could be riches.

L&G sees this, anyway.

Yes it's now a more regulated marketplace, but one now full of opportunities. But still not an easy task.

Yet banks could re-create that local presence. Bring back some of that ‘community’ and empathy. But the natives will take some convincing; some of them are revolting. They need finance but no longer feel being pushed around by banks who don't understand them is

a sound basis for doing business. Despite having limited options.

Consider the SME’s attitudes towards the banking sector. As a sector that's growing and constantly referred to as the (hoped-for) 'engine' of job creation and economic growth yet — they argue — no-one wants to help them. Lack of finance is their most frequent cry of pain. Everyone knows this in spades, of course. Especially you.

This is only being highlighted by the rise in interest and appeal to SMEs of alternative lending solutions -- from crowdfunding initiatives such as kickstarter and seedrs, to peer-to-peer lending and payment service providers. All of whom are hungry and helpful and establishing real market presence. Offering a real challenge to traditional banking services.

As the banking landscape has changed, so the need for financial institutions to adapt and become more customer focused is now the main priority:

“We are considering candidates with skills much wider than banking experience alone...this means having to be more intuitive about fit, culture, adaptability and transferable skills rather than pure experience criteria.”

So said Lee Slater, last October, Head of Talent, at Standard Chartered bank. Respect.

THERE'S MORE: these high growth SMEs are in the vanguard of a technological revolution. Quite apart from changing how we live and work, the nature of these entrepreneurial companies and their younger staff profile also poses a challenge to banks in the way they need to engage with them and do business with them. Indeed 57% are predicted to be using social media initiatives this year to promote their business. Er, doing this too, Mr Slater from Standard Chartered bank?

ONE EXAMPLE: six years after the launch of the iPhone and more than half of British adults own a smartphone. Although we don't like hype, the percentage of entrepreneurs who own a smartphone is likely to be 100%. Maybe even 120% as many people carry more than one smartphone and tablet.

We've not even mentioned tablets which didn't even exist three years ago. So how will banks respond to this more challenging audience? How will they be able to keep themselves on the radar, positively, with these sort of companies' younger, tech-savvier personnel: their expectation levels, their preferred communications platforms and their new and more dynamic business needs?

CUE A GOOD CONTENT AND SOCIAL MARKETING AGENCY OUT THERE?

Talking in their language; meeting them on their turf

1 Is a social media strategy right for us at Main High Street Bank and, if so, have we got the right plans in place around our proposed SM offering this year?

2 How do we develop a distinctive and authentic (and appropriately sensitive) TOV for our bank's brand in the SME marketplace?

3 Do we have the right sort of creative platform that will drive engagement and interaction and recruit new high-growth SMEs?

4 After being in business as a leading brand (for just, say, three or four hundred years?) is there any chance at all (ahem!) that we might be able to convert all this into great content for the benefit of our customers?

5 Lastly, because we're mad about numbers, do we have the right metrics and measurement facilities in place to provide comprehensive analysis and evaluation of our efforts?

Perhaps this last bit is the real fairy story! But if it were the case, wouldn't it be a lovely story after all. And one with the happy ending I suggested it would have.

IT COULD ALL COME TRUE AND IT COULD BE YOU!

It seems obvious to us that social media has been created especially for banks: to recreate their 'relationship banking' service. Of course it has!

After all, social media has moved on. It's grown up. Marketers maintain they plan to up their SM budgets by 50% in 2014.

All banks need to do now is ask themselves five simple questions, see right

SOCIAL MEDIA AND BUSINESS SHOULD BE FRIENDS