Case Study: Evaluating First National Bank's Social Media Approach

This case study examines First National Bank's (FNB) use of social media, particularly after Michael Jordaan became CEO. It explores how FNB leveraged platforms like Twitter, Facebook, and YouTube to engage customers, introduce innovative services like the dotFNB app, and gain a competitive edge. The analysis covers the benefits of this social media strategy, including enhanced customer connection and brand building, while also highlighting areas for improvement, such as increasing community size on certain platforms and addressing potential security risks. The case study further outlines important considerations for using social media, such as the need for regular updates, data protection, attractive design, and strategic investments to enhance customer experience and business performance. The provided references support the findings and provide additional insights into the topics discussed.

Running head: CASE STUDY ANALYSIS: BANKING ON SOCIAL MEDIA
Case Study Analysis: Banking on Social Media
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1CASE STUDY ANALYSIS: BANKING ON SOCIAL MEDIA
Table of Contents
Answer to Q1:..................................................................................................................................2
Use of digital and social media in First National Bank (FNB):..................................................2
Answer to Q2:..................................................................................................................................3
Benefits to FNB from social media strategy:..............................................................................3
Answer to Q3:..................................................................................................................................3
Lessons to FNB:..........................................................................................................................4
Answer to Q4:..................................................................................................................................4
Important points to consider on social media platforms:.............................................................4
References:......................................................................................................................................6

2CASE STUDY ANALYSIS: BANKING ON SOCIAL MEDIA
Answer to Q1:
Use of digital and social media in First National Bank (FNB):
The revolution was brought after when Michael Jordaan took the charge as CEO of the
bank. An innovative approach to working with the CEO and a skillful work of Lana Strydom has
collectively enhanced the competency of FNB on social media platforms. Mr. Jordaan, the CEO
of the FNB has a very different approach to work. The CEO actually admires people who are
innovative. The journey had started when the CEO had announced that the FNB acts seriously to
innovate with things and please the audience. The CEO himself is a very active person on the
social media sites, in particular, the twitter. The CEO personally responded to customer's
complaints on Twitter. The journey got accelerated when the survey was done to check the
effectiveness of the CEO's presence over twitter. Results were surprising as approximately 78
percent of the respondents had affirmed that the participation of CEO on social sites helps to
establish an effective communication. Moreover, it is necessary to maintain a brand image
(Tsimonis and Dimitriadis 2014).
The journey to social media platforms had been further accelerated when they announced
to reward employee if they provide trendsetter ideas. Employees had been encouraged.
Consequently, different ideas had started to pour into the company (Hiltz, Kushma and Plotnick
2014). Jordaan initially tried to attract customers to have some transaction on the Facebook.
They launched educational series on YouTube. They had also created their own app dotFNB.
The app was first of its kind in South Africa. They with this had touched the core choice of
customers (Hiltz, Kushma and Plotnick 2014). Importantly, they landed on the social media
platforms at a time when the use of social media platforms had become popular in the country.

3CASE STUDY ANALYSIS: BANKING ON SOCIAL MEDIA
They had also introduced an e-Wallet Facebook game to help customers updated with the latest
products and the related information.
Answer to Q2:
Benefits to FNB from social media strategy:
The social media strategy has immensely benefitted the First National Bank (FNB). They
were able to connect with their customers through the various social media platforms like
Facebook, Twitter, LinkedIn, and YouTube. The business had made sophisticated that allowed
customers a much-needed relief from physical exercises that they are required to do in case of
any bank related works (Parveen, Jaafar and Ainin 2015). The innovation in future had been
embraced by its strong rivals like Standard Bank. However, FNB has maintained its own position
on the social media platforms.
At the time, when the used strategy had been embraced by its competitors, they took the
other way to enhance their competency. They channelized the team to support the different social
media platforms like the Facebook, Twitter, YouTube and LinkedIn. It meant that they will take
care of the different social media platforms and will keep it updated based on their knowledge.
The purpose had also required the different personnel to be in touch with the entire marketing
promotional activities like the Public Relations activity (Inversini and Masiero 2014). Such
works will keep the personnel updated with the latest products, services and the announcement
of the bank. Moreover, customers will get updated news on the different social media channels.
Consequently, their innovation has helped them to be ahead of its competitors in terms of
community size on Facebook and YouTube (Inversini and Masiero 2014).
Answer to Q3:

4CASE STUDY ANALYSIS: BANKING ON SOCIAL MEDIA
Lessons to FNB:
The First National Bank (FNB) is behind to its competitors in terms of community size
over LinkedIn and Twitter. They at times had faced the challenge when their competitors had
started to embrace the technology to their use. The technological platform, which the bank had
used, is a matured platform that already had a high number of active users. Moreover, such
platforms are not safe indeed (Trainor et al. 2014). Confidential data may not be safe as FNB had
also allowed the transaction to few customers on Facebook. Data might be hacked and the bank
will have to bear the responsibilities. Banking transactions should be in a protected way. The
best feasible strategy for such transactions will be to go with apps or the personal websites
(Trainor et al. 2014).
To First National Bank (FNB), it is important that they maintain their competency by
bringing innovative ideas to the audience. However, they are required to be smarter enough as
the selection is very important in designing and implementing the innovative ideas (Saxton and
Wang 2014). They had thought of leading the industry by connecting to customers on the social
media platforms; however, the strategy was soon followed by its strong competitors to their
benefits. It is indeed advisable that the bank considers to promote its own app and at the same
time, maintaining the competency of the different social media sites (Saxton and Wang 2014).
They will be able to protect the app and to upload the latest and detailed information of
everything. The access to the app; however, needs to be protected to prevent this from hacking
(Saxton and Wang 2014).
Answer to Q4:
Important points to consider on social media platforms:

5CASE STUDY ANALYSIS: BANKING ON SOCIAL MEDIA
Using social media platforms may be a good way to interact with a thousand of customers in
no time. On the other side, this could also be fatalistic if they do not have controlling measures
against the unidentified cyber threats. Such threats may even hack the confidential data that are
very important for an organization (Dijkmans, Kerkhof and Beukeboom 2015). Few precautions
will be required to enhance the customer experience and to improve the business performance of
the company. Following are such points:
 Social sites need to be updated on a regular basis, so that, customers could understand the
importance of transaction and take it seriously. Updating process can be done with the
help of workforce aligned to different social sites separately (Wamba and Carter 2016)
 Social sites transaction needs to be protected from hackers. Moreover, data theft is a
threat that could easily turn customers unhappy and feel cheated (Dijkmans, Kerkhof and
Beukeboom 2015)
 Investments will be required to make it look attractive as customers are attracted towards
attractive designs. Any news needs to be presented with attractive use of words and
sentences (Wamba and Carter 2016)

6CASE STUDY ANALYSIS: BANKING ON SOCIAL MEDIA
References:
Dijkmans, C., Kerkhof, P. and Beukeboom, C.J., 2015. A stage to engage: Social media use and
corporate reputation. Tourism Management, 47, pp.58-67.
Hiltz, S.R., Kushma, J.A. and Plotnick, L., 2014, May. Use of Social Media by US Public Sector
Emergency Managers: Barriers and Wish Lists. In ISCRAM.
Inversini, A. and Masiero, L., 2014. Selling rooms online: the use of social media and online
travel agents. International Journal of Contemporary Hospitality Management, 26(2), pp.272-
292.
Parveen, F., Jaafar, N.I. and Ainin, S., 2015. Social media usage and organizational performance:
Reflections of Malaysian social media managers. Telematics and Informatics, 32(1), pp.67-78.
Saxton, G.D. and Wang, L., 2014. The social network effect: The determinants of giving through
social media. Nonprofit and Voluntary Sector Quarterly, 43(5), pp.850-868.
Trainor, K.J., Andzulis, J.M., Rapp, A. and Agnihotri, R., 2014. Social media technology usage
and customer relationship performance: A capabilities-based examination of social
CRM. Journal of Business Research, 67(6), pp.1201-1208.
Tsimonis, G. and Dimitriadis, S., 2014. Brand strategies in social media. Marketing Intelligence
& Planning, 32(3), pp.328-344.
Wamba, S.F. and Carter, L., 2016. Social media tools adoption and use by SMES: An empirical
study. In Social Media and Networking: Concepts, Methodologies, Tools, and Applications(pp.
791-806). IGI Global.