Apr. 29, 2009 at 4:27pm

Banking on Facebook

Posted by Guest Blogger in Differentiation is Key, Strategic Communications
Comments (1)

I remember when Facebook first came out. Back when things were simple. Only college students had access to the site and member profiles consisted of a person’s name, contact information and a simple photo. Now not only is anyone eligible to create their own account, but users can access the site for a variety of tasks ranging from selling their pet goldfish to accessing their checking and savings accounts.

KeyPoint Credit Union in Santa Clara, Calif. is the first financial institution to launch a Facebook application that gives its members easy access to their account balances. With everyone being told to watch what pictures and information they share on the popular networking site, you have to stop and think: Is banking through Facebook such as good idea?

Its members think so. When I looked at the KeyPoint Credit Union application, the only negative reviews were from people who were not members of the credit union and had trouble accessing the application. KeyPoint members had little-to-no complaints. If the site is secure like it says, using Facebook is a smart business move.

According to a recent survey, 88 percent of businesses are using social media to market their company. At least two out of three participants report an increase in traffic with as little as six hours per week invested in social media. The top reasons for using Facebook and other tools like Twitter, LinkedIn and blogs are to generate exposure and build new business partnerships.

Some other benefits of using social media:

• The only cost to market on these sites is the time you decide to put into them.
• They help your company attract targeted demographics.
• Communicating on a more personal level through these sites builds credibility and trust.

Facebook also allows its users to create groups for other members to join. One group titled “Facebook for Business” was established for people who believe business needs social marketing and it allows users to post information about their services. The group currently has over 40,000 members.

While the largest demographic on Facebook is 18-24, don’t discount being able to reach other important demos as well. The 25-34 population doubles every six months on Facebook and there has been a 276.4 percent growth rate over six months for the 35-54 demo.

From mobile phones to wireless internet and more, the amount of vehicles for communicating with members will inevitably continue to grow and you have the opportunity to stay ahead of the curve.

Comments (1)

Kelly, thanks for the great report. I'm in the 40+ demo and doing finances on Facebook scares me, frankly. Heck, I don't even do regular online banking. Me and my checkbook are still pretty tight. However, your post helps me creep closer to going electronic. My teenage sons would be proud.
1 | Left by Jackie Zils | Apr. 30, 2009 at 8:48am