2. Web 2.0 : In 2004, the term began its
rise in popularity when O'Reilly media
and Media live hosted the first web 2.0
conference. Web 2.0 basically refers to
the transition from static HTML web
pages to a dynamic web that is more
organized and based on serving web
applications .
3.
4. Social Media :
Social media is the social
interaction among people in
which they create, share or
exchange information and ideas
in virtual communities and
networks .
5.
6. Banking Sector :
Banks and other financial
institutions which provide
lending and investments .
7.
8. Generation C :
Generation C phenomenon
captures an avalanche of consumer
generated "Content" that is
building on the web, adding
terapeta bytes of new text, images,
audio and video on an ongoing
basis .
11. Web 2.0 technologies have transformed the
way people live and work by making it easier
to connect and engage online .
They have also enabled major changes in
customer behavior, which in turns has
revolutionized industries that have
successfully incorporated these technologies
into their distribution models.
12. Examples of these can be Trip Advisor, a
site which is planning trip with social
networking features.
13.
14. Another example is in
telecommunications, an internet
service such as Skype finds success
by undercutting traditional
telephone operators.
15.
16. Yet even as these industries and
others have embraced web 2.0,
retail banking has largely remained
on the sidelines.
17. The internet has already significantly changed
many aspects of banking. For example, online
banking has grown substantially over the past
decade, with online payment particularly.
But banks should pay more attention to the true
potential of today's new technologies and tools.
And as consumer preferences and expectations
continue to adapt, the imperative for banks to
respond with new offerings will only increase.
18. To retain their competitive edge, banks need to
reach out to younger, more web-savvy customers ( so
called Generation C, or the connected generation ),
devising new products and services that are simpler
and more transparent, and using the power of social
networking and other digital platforms to improve
their marketing.
19.
20.
21. The traditional banking model has long
been made up of discrete segments, for
example retail banking, mass affluent
banking, and small and midsized
enterprise banking. Each segment depends
on several sales and distribution channels,
including ATMs, branches, contact
centers, the internet and mobile banking.
22. Each segment also offers a range of
traditional products: Checking, saving
accounts, long-term deposits, consumer
and small business credit, mortgages,
investment products and advice.
These products and services are
marketed through traditional centralized
functions, including brand management
promotions, and sponsorships.
23. However several factors are converging
that will force banks to reconsider every
aspect of their distribution systems. With
web 2.0 technologies, consumers are
changing their behaviors, and they are
demanding a more user-friendly,
networked banking experience, one that
provides a greater level of trust,
transparency, and interactivity.
24. The bank's goal, ultimately, is to attract new,
digitally savvy customers by building their
confidence in banks through increased
involvement. The greater loyalty such effort will
generate, across all customer segments, will help
banks increase revenues and compete more
successfully. There are three key opportunities
that await those banks that are willing to take
the leap.
26. In developed markets,
virtually every member of
generation C uses the
internet and almost two-
thirds use social networks
to access information,
entertain themselves, and
stay in touch with friends
and family.
27. Already 12 percent of this community
read dedicated finance and investing
forums. Despite these changes in
consumer behavior, most banks still use
their websites primarily to provide
information and enable standard
transactions, limiting real communication
to branches and contact centers.
28. New web technologies have significantly opened
up the possibilities for better communication
over the internet and through smart phones.
Banks could start blogs, for example, enabling
discussions of specific economic developments,
new services, or the latest research of interest to
target customers.
Active participation in social networks could
increase loyalty among existing customers and
attract new ones.
Some Features of this issue are :
36. Web 2.0 technologies help
customers understand
complex financial products.
Online advice is a source of
valued financial information.
By producing video clips
banks could explain their
products, and also they can
offer access to financial
advisors through video calls.
37. Hosting online communities and
finance-related forums on their
websites, banks enable customers to
discuss financial products with one
another and with bank
representatives.
39. The term used to describe the evolution
of the Web as an extension of Web 2.0.
This definition of Web 3.0 is the popular
view held by Tim O'Reilly. In contrast,
Nova Spivack defines Web 3.0 as
connective intelligence; connecting data,
concepts, applications and ultimately
people. While some call the The
Semantic Web 'Web 3.0', Spivack's
opinion is that The Semantic Web is just
one of several converging technologies
and trends that will define Web 3.0.
