Social Media at Chinese Banks

by Hua Zhang, December 13, 2016
Industry Trends
Asia-Pacific

Abstract

Celent has released a new report titled Social Media at Chinese Banks written by Hua Zhang, an Analyst with Celent’s Asian Financial Services practice.

Key Research Questions

1

How does the banking industry use social networks?

2

Which banks in the Asia-Pacific region are pure social network banks?

3

How will traditional banks transform into social banks?

Social networks enable banks to come into closer contact with customers and carry out effective customer segmentation, thus allowing them to provide better consumer finance, payment, and other services; social networks also enable banks to provide improved means of risk management, which allows them to offer financial services relevant to low-end users.

Nowadays, social networking has become an entry point to user behaviors such as payments, shopping, e-commerce, and more. To a certain extent, social networks understand their users more than banks. Based on such an understanding, a series of business models and innovations are emerging. In the report Social Media in Banking in Asia, Celent examines the social network-based financial services, cases and trends.

“Social banking is not simply about having traditional banking businesses on Facebook — it involves fundamental changes in banks' approaches toward customer acquisition, marketing, customer segmentation, product design, customer operations, and other business aspects.” says Zhang. 

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Use of Social Media for Marketing

3

 

Dah Sing Bank Uses Facebook and YouTube for Publicity

3

 

DBS Bank Uses Social Media for Product Improvement

3

Social Media-Based Mobile Banking

4

 

China Minsheng Bank’s WeChat Bank

4

Community Banking + Social Banking: Establishment of Social Ecology

5

Social Network-Based Credit

6

 

The Construction of Social P2P Lending by Bangladesh Bank

6

 

The Whitelist Mechanism of WeBank

6

 

Lending via Acquaintances

6

 

Development of Consumer Credit Through Social Media

7

 

Anti-Operational Risk

7

Scenario-Based Financing and Payments Based on Social Media

8

 

China Citic Bank: Scenario-Based Financing

8

 

Japan’s Rakuten Bank Supports Money Transfer Service via Facebook

8

Pure Social Banks

10

 

WeBank: Acquaintance-Based Social Bank

10

 

Alipay: Stranger-Based Social Bank

12

Transformation to Social Banking of Traditional Banks

14

 

Low-Cost Customer Acquisition

14

 

Minimalistic Product Design

15

 

Integration of Online and Offline Services

15

 

Continuous Community Integration

15

 

Profile of Users and Precision Marketing

16

Conclusion

17

Leveraging Celent’s Expertise

18

 

Support for Financial Institutions

18

 

Support for Vendors

18

Related Celent Research

19

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