Asian banks raise stakes in social business tools

by CXOtoday News Desk    May 28, 2013

Social media

Regional financial institutions will go beyond the usage of social business software as mere collaboration tools and start, within the next two years, to integrate business processes and applications with enterprise social software to realize greater benefits, says IDC Financial Insights.

It observes that Asian financial institutions are currently utilising enterprise social tools for instant messaging, Email and within their intranet social networks, predominantly for activities like internal training, collaboration, knowledge sharing and learning management.

As solutions mature, Li-May Chew, associate research director, Asia/Pacific Financial Advisory Service, IDC Financial Insights, expects interactions to be increasingly tracked, captured and mined by banks, with predictive analysis and behavioural modeling applied to the data for gaining competitive advantage.

Findings from a 2012 IDC survey on 350 decision makers and influencers across ANZ (Australia and New Zealand), ASEAN (Singapore, the Philippines, Malaysia, Indonesia and Thailand), and Korea show that 52 percent already have enterprise social network or software tools, while another 23 percent plan to adopt one by end-2013.

Within the financial services space, Malaysia’s CIMB’s OctoPay service; while institutions such as India’s ICICI and Singapore’s DBS are leveraging Facebook to enhance branding and foster customer relationships.

With an increasing demand for social business tools and a corresponding growth in the number of technology service providers offering Enterprise Social Software (ESS), IDC Financial Insights shares the following tips for implementation success with regional financial institutions.

“Successful ESS implementation requires the support of solution champions, effective community management as well as an active technical support community provided by the vendor,” says Chew. She stresses the importance of sending the right signals to employees by getting senior executives on board. “In addition, it is important to provide incentives for employees to actively participate to enhance the value derived through social business tools.”

Chew adds that it is crucial for regional institutions to understand how employees collaborate with their colleagues and engage with their work now, what their challenges are, and what metrics they would want to judge the success of a social solution deployment by.

Furthermore, with financial institutions bounded by more stringent regulations, they would need to incorporate any existing communications governance policies and consider the need for new policies given the unique traits of social tools.”