Effective communication with customers is undoubtedly a key objective for all organisations, but with the rise in automation in the financial sector, banks are under increased pressure to use this in a positive way and use many different channels to stay in touch with their customers.

Social media is currently considered to be the modern way to communicate with customers, although in some quarters it is approached with trepidation. And perhaps rightly so. Interacting with customers in an open forum while striving to maintain security and safety is a tricky task, but if used appropriately it can be incredibly effective.

Enabling financial institutions to get close to their customers, social media creates communities, sparks conversations and helps organisations demonstrate a more personal and transparent approach. It also goes a long way in enhancing online visibility and, if closely managed, can be a powerful customer service tool, helping banks to respond in real-time.

Bits - the technology arm of the US bank-backed Financial Services Roundtable – recently issued a social media framework for financial institutions. Offering adoption advice and a guide to managing related security risks, the launch of the paper highlights the rapid growth and weight that is now being given to this valuable communication tool.  A framework such as this one can help overcome the fear of the unknown and other similar objections that hold banks back from entering social media.

The industry would be well-served to fully embrace social media as a way to engage with their customers.  Social media provides another channel to establish a personal connection with customers and increase satisfaction.