Every customer’s reaction, share, or comment influences the reach of a bank’s message—and could threaten the bank itself. Banks should use social media to actively engage online communities, not just to display ads.

• Consumers’ attachment to social media precipitates panic. The average US adult will spend 1 hour and 20 minutes per day with social networks this year, per our forecast. This engagement with social media channels compounds the speed with which emotionally charged messages spread.
• Mobile banking increases the risk of hasty financial decisions. There will be 170.0 million US mobile phone banking users in 2023 and 201.0 million adult social network users. That suggests that millions of consumers will be able to make hasty, on-the-go financial decisions after hearing bad news on social about their bank.
• Messaging must be rapid in response to pressing concerns. The risk of quickly spreading alarm via social networks means banks must be prepared to contact customers via social channels at the first signs of trouble. In a crisis like today’s, customers may start to worry when others question a bank’s safety.

Read the full report.