The rise of Web 2.0 has led to a huge surge in new technologies, including wikis, blogs, mobile apps, and social media. Changes in customer behavior and a vast increase in communication, interactivity, mobility, and ease of use have transformed industries as varied as telecommunications, retail, and media. Yet for all intents and purposes, the retail banking industry has remained on the sidelines. It is time for banking to come to terms with Web 2.0 and take advantage of the many opportunities it offers.
This will require banks to rethink their traditional distribution models, including creating new offerings and channels for younger customer segments, 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 effort will force banks to better understand the true potential of Web 2.0 and learn to speak the language of the new generation of Web-savvy users, which might help them gain back the trust lost during the recent financial crisis.
Success in the new Web 2.0 world will require a clearly defined strategy that includes involving the bank’s customers in its marketing efforts, creating a carefully blended product portfolio with new segmentspecific offerings, and investing in the Web 2.0 technologies needed to pull the entire effort together.