social media in indian banking industry
DESCRIPTION
The profit pool of the Indian banking industry is probable to augment from US$ 4.8 billion in 2005 to US$ 20 billion in 2010 and further to US$ 40billion by 2015, with increasing wealth generating population. Almost 98% of the working population in India are said to have a bank account by the year 2015. With Social Media sites becoming most used and visited online platform, it is imperative for businesses to listen to their customers in social media communities.TRANSCRIPT
http://simplify360.com
Indian Banking Industry
Social Media Case Study
http://simplify360.com
Abstract
The profit pool of the Indian banking industry is probable to augment from US$ 4.8 billion in
2005 to US$ 20 billion in 2010 and further to US$ 40billion by 2015, with increasing wealth
generating population. Almost 98% of the working population in India are said to have a bank
account by the year 2015. With Social Media sites becoming most used and visited online
platform, it is imperative for businesses to listen to their customers in social media
communities.
Being a completely customer driven segment, Banks need to be in constant touch with their
customers. Social Media can act as a great channel of communication not just for promoting
new schemes but also listening to what the customer needs and collecting feedback online.
Unfortunately banking sector in India has still not explores the power of social media. Only a
couple of banks are present in social media sphere but their engagement and activity level still
needs a lot of work.
Internet Reach of Banking Related WebSites
http://simplify360.com
Research Method
• Each individual bank was researched over the internet to find their social media reach.
The banks were scored based on various parameters using statistical analysis.
• Banks were categorized into National Banks and Private Banks.
• Based on their scores, Banks were plotted against each other to measure their
engagement level across social media communities (channels)
• Social Networking site used are: Twitter, Facebook, LinkedIn, Blogs, Youtube etc.
Understanding the Graphs
Nationalized Banks
The banks in Nationalized category are State Bank of India, Bank Of Baroda, Bank Of India,
Indian Overseas Bank, Punjab National Bank, Allahabad Bank, Oriental Bank of Commerce,
Punjab & Sind Bank, Bank Of Maharashtra, IDBI Bank, UCO Bank, Dena Bank, Canara Bank,
http://simplify360.com
Union Bank Of India, Central Bank Of India, Indian Bank, Corporation Bank, Syndicate Bank,
Vijaya Bank.
Bank Channels Engagement Score Social Media Score
Nationalised Banks
State Bank of India 4 3.4 3.64
Bank Of Baroda 3 2.7 2.82
Bank Of India 3 2.2 2.52
Indian Overseas Bank 3 1.9 2.34
Punjab National Bank 2 1.7 1.82
Allahabad Bank 2 1.6 1.76
Oriental Bank of Commerce
2 1.6 1.76
Punjab & Sind Bank 2 1.6 1.76
Bank Of Maharashtra 1 1.5 1.3
IDBI Bank 1 1.5 1.3
UCO Bank 2 1.5 1.7
Dena Bank 2 1.4 1.64
Canara Bank 1 1.3 1.18
Union Bank Of India 2 1.3 1.58
Central Bank Of India 1 1.3 1.18
Indian Bank 2 1.3 1.58
Corporation Bank 2 1.2 1.52
Syndicate Bank 1 1.2 1.12
Vijaya Bank 1 1.2 1.12
http://simplify360.com
Interaction Distribution of Nationalized Banks
In case of government banks, only SBI seems to have more social media reach and high
engagement level. But you will notice later that it is very low in terms of how private banks are
performing in social media.
Private Banks
The banks in Private category are American Express, HDFC Bank, ICICI Bank, Yes Bank, Citi Bank,
South Indian Bank, Kotak Mahindra Bank, ING Bank, Axis Bank, IndusInd Bank, City Union Bank,
Karnataka Bank, Dhanalakshmi Bank, Federal Bank, Jammu & Kashmir Bank, Karur Vysya Bank,
Syndicate Bank.
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5
Inte
ract
ivit
y le
vel
No of Channels
Nationalised Banks
http://simplify360.com
Bank Channels Engagement Score Social Media Score
Private Banks
American Express 5 4.4 4.64
HDFC Bank 7 3.9 5.14
ICICI Bank 7 3.3 4.78
Yes Bank 4 2.7 3.22
Citi Bank 3 2.7 2.82
South Indian Bank 3 2.5 2.7
Kotak Mahindra Bank 5 2.2 3.32
ING Bank 3 2.1 2.46
Axis Bank 3 1.9 2.34
IndusInd Bank 2 1.6 1.76
City Union Bank 2 1.4 1.64
Karnataka Bank 1 1.3 1.18
Dhanalakshmi Bank 1 1.2 1.12
Federal Bank 1 1.2 1.12
Jammu & Kashmir Bank 1 1.2 1.12
Karur Vysya Bank 1 1.2 1.12
Syndicate Bank 1 1.2 1.12
http://simplify360.com
Interaction Distribution of Private Banks
The graph above shows that HDFC is doing a great job in managing multiple online social
profiles and at the same time engaging with customers. Meanwhile other banks are very low in
terms of social media reach and engagement. This shows that there are more banks that are
unable to understand the value of social media engagement. While some who have understood
are excelling high.
Dhanalakshmi, Federal, J&K, KVB,
Syndicate
Karnataka Bank
0 1 2 3 4 5 6 7 8
Inte
ract
ivit
y Le
vel
No of Channels
Private Banks
http://simplify360.com
Top Ten Banks according to their Social Media Performance
Bank Social Media Score
HDFC Bank 5.14
ICICI Bank 4.78
American Express 4.64
State Bank of India 3.64
Kotak Mahindra Bank 3.32
Yes Bank 3.22
Citi Bank 2.82
Bank Of Baroda 2.82
South Indian Bank 2.7
Bank Of India 2.52
http://simplify360.com
How HDFC Bank is using Social Media
http://simplify360.com
ICICI versus SBI: Twitter Engagement Comparison
Conclusion
Though banks are supposed to listen to their customers not just from the aspect of selling more but also
from the point of social welfare, they still haven’t explored one of the most used channels of
communication used today. Social media is being used today to discuss products/ services and
consumers like to use services which not only tell them about themselves but also listen to them. A few
private banks like ICICI and HDFC have begin to understand this shift and have started to be engaging
rather than selling.
http://simplify360.com
mpleSimS
Want to get in touch with us? We’d love to hear
from you!
All our accounts come with a 15
days free trial.
We also offer customized packages
to suit your exact needs.
Need Social Media Help to Get Started….
For pricing details visit:
For Product Demo, send a
mail to:
http://simplify360.com/registerLogin
You can get in touch with us at:
:
http://simplify360.com/blog
/
@simplify360
+1 616 589 2164 (US Sales)
+91 80 40971130 (India Sales)