Twitter for Banks - Part of Social Media Strategy?

There is so much media attention for the social networking platforms that it is hard for the banks and other financial services companies to ignore it. The result is that we have seen several banks dabble with it, mostly with very limited success.

As a marketer, its hard to ignore the trend and the enormous number of clicks that sites like facebook, twitter and myspace are getting everyday. But at the same time, a lack of a clearly thought out strategy can actually do more harm to the brand than good.

I think its especially true for Twitter, given that its a "Internet" version of an SMS. Twitter is a free online networking platform that allows users to send and receive text updates, or "tweets" from other users that they choose to "follow." The novelty is that the message can only be 140 characters long, and can be delivered to a cell phone, email account, Twitter account page or Twitter reader installed on the desktop.

Here are some examples of how banks are using this site. BofA and Wells Fargo are utilizing Twitter as a one-to-one customer service channel. But perhaps the most personalized approach comes from Peter Aceto, CEO of ING Direct Canada, who personally Tweets several times a day about his life, his team, and his ideas. Aceto's posts never mentions ING's products; he says many of his 603 followers are "superfans" who want to share their love for the company.

If all of these efforts are a part of an overall social media strategy, then it might make sense but I have not come across or understood the benefits for banks yet.

To me the central questions banks need to answer are:

1. who are they trying to reach out to?
2. what message do they want to share with the target audience?
3. Why?
4. Is this the best channel to get the message across?

We will continue to watch the most innovative and effective social media strategies, which are still in their infancy.