December 13, 2010 08:08 ET

Banks Cautious About Combining Social Networking and Traditional Services

ROCKVILLE, MD--(Marketwire - December 13, 2010) - has announced the addition of IDC's new report "Business Strategy: Banking on Social Networks Has Limited Audience," to their collection of Banking & Financial Services market reports. For more information, visit

This IDC Financial Insights report announces the results of a consumer survey conducted in October 2010, focusing on current consumer sentiment around combining social networks with banking.

Financial institutions need to continue to monitor their customers' expectations to ensure that they do not overdeliver technology that is not needed. It may sound great on paper to link financial activity to social networks for example, but as we have demonstrated, the masses are not screaming for this. The ROI will not be there, and there are likely better IT investments to be made. Looking at social networks as a marketing channel, however, does make sense, and subsequently this is where IDC Financial Insights sees continued investment in social networking in the near term.

"Bankers have been trying to figure out where the intersection exists between social networks and financial activity," says Marc DeCastro, research manager of consumer and community banking at IDC Financial Insights. "Will it be informational like balances, will it be transactional like broadcasting certain purchases, or will it stay strictly as a marketing channel? Right now, the research seems to support that marketing is the best path to take for the near term."

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