Social Media Boosts Banking Operations During Natural Disasters

The United States has faced its fair share of natural disasters in recent months, ranging from tornadoes and earthquakes to the more recent Hurricane Irene. During catastrophic events, many Americans scramble to get to ATMs and bank branches to make deposits, take out emergency cash and safeguard their valuables in safety deposit boxes, but finding available or working facilities can be difficult.

To circumvent these issues and keep both customers and bank employees abreast of developments, many financial institutions are relying on social media platforms, such as Twitter and Facebook, as well as mobile communications to spread information. For example, during Hurricane Irene Citibank utilized its social media websites to announce closures, inform customers of open branches and send storm updates to customers located in disaster areas, according to the American Banker.

In addition, the move was instrumental in helping financial institutions avoid flooded call centers and customer service issues, as most connected customers were able to track updates and information online.

A recent Sachs/Mason-Dixon poll reveals roughly 70 percent of the U.S. population rely on social media during natural disasters, whether it be to receive updates, settle their finances, track progress or stay in touch with loved ones, according to the Sun-Sentinel. As a result, many banks are capitalizing on this trend to stay connected with its customer base.

“We encouraged them to use our mobile apps to locate stores and ATMs near them so they could call for hours, opening information or locate additional stores in their area, or visit us on the web,” TD Bank spokeswoman Rebecca Acevedo told the magazine. “We also instructed customers to follow us on Twitter.”

In addition to social networks, many institutions have also noted the effectiveness of targeted email campaigns, which allowed many banks to update customers who lived in particular areas of bank closings, openings, damage and ATM usage in certain locations.

Social networks, such as Twitter and Facebook, have recently become more commonplace in the banking industry, providing a forum for customers to discuss their experiences and allowing institutions to receive valuable feedback and insight into their products. However, analysts say financial institutions’ use of social media during natural disasters reveals the far-reaching effects of this type of communication and reveals the future possibilities that social media has to offer both banks and customers.

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