While the lessons of a survey Mintel Comperemedia reported on this past spring applies specifically to banks, there are messages to learn for mortgage originators (of which many people place in the same boat) as well.
Mintel said the "secret weapon" for banks to combat distrust by consumers is the social media. The company cited a survey which found less than half of respondents said their bank is a company they can trust, and 50% said they had less trust in banks than they did two years prior.
However, 22% of respondents in the same survey said they thought social media sites helped them make good decisions about their purchases, with an equal number saying social networking sites helped them to make good decisions about life in general.
The social media is not just for connecting with family and friends. Mintel said the diverse number of ways people use social media sites leaves a window open for financial institutions to make meaningful connections with unlikely customers, as well as build brand loyalty with current ones.
Susan Menke, vice president of financial services at Mintel Comperemedia, commented "nearly one in three social network users value the opinions and recommendations of family and friends over industry experts or any other source of information."
Mintel suggests banks create social networking sites to allow established customers to recommend the institution and its services to friends and family, effectively building relationships with consumers they might not otherwise reach. For our purposes, we can substitute mortgage origination companies for banks.
Its research also suggests that the most effective ways for financial companies to engage consumers on social networking sites is to offer an incentive. This could be coupons to local businesses or donations to charity.
"Social media is a relatively new channel for many financial companies, but indications are that it can be a very effective way to reach customers," Menke said.
