Having seen a mirror of moving from traditional banking to new Gen banking in our first storyline, and covering internet banking and mobile banking, as well as direct banking in our second storyline. Let's now see how banks are coping up with the huge growth of social media and also heavy competition from smaller FinTech companies in this third storyline. While internet was making rounds in desktop and mobile environment, let's see the usage of social media by banks in brief. Wells Fargo was much ahead of the curve as they opened the stagecoach Island virtual banking tour in 2005. Lloyds Bank in UK started social media game called money for life in 2010. Various banks are now using social media for developing the customer relationship.

It's always been a debate within the bankers whether social media can be used for transactions, or it can be developed for customer relationship. However, social media has been always under experimentation is the bank in New Zealand was a pioneer in opening the first virtual face book bank in the world. This bank was not only developing relationship with the customer, but also promoting banking products, taking up any deviances sharing bank events, resolving any account queries. By the way, it was a very bold step by a New Zealand bank in creating such a new channel called Facebook. And this was in addition to various channels such as tele banking, ATMs, branches, etc, etc. Mind you, customer data has to be synced dynamically with a Facebook branch.

But world doesn't stop any such innovators even if it means an adventure at that point of time. And this was very early in the period. Thanks to ASB bank in New Zealand. As early as in 2005, Wells Fargo Bank initiated a virtual life experience in social media with its 3d virtual Island, and that was called a stagecoach Island. stagecoach island was mean for young customers who educate themselves about money matters. It also served as a social hub where users could meet each other and create friendship while they were socially trying to create friendship or, or cute or Facebook.

Thank you Limited is a financial tech and marketing services company headquartered in Austin, Texas. They developed a site called money island which is an online game designed to teach Teens between the age of eight to 14. This site has three specific learnings first, saving and spending, second, earning and investing. And third, using credit wisely. Therefore, some of these virtual games were created to educate young customers. Nurture brand awareness developed any early relationship with the younger generation.

Let's look at one case study of Facebook page created by Capital One. Capital One Financial Corporation is a bank holding companies specialized in credit cards, auto loans, banking and selling products. It's headquartered at McLean. within us they are one of the leading banks and their Facebook page is liked by approximately 4.3 billion people. That's a big number. They cover various subjects such as financial education, explaining their financial product, and our Seeing the Capital One events suggesting new offers.

However, social media page can also turn very negative, as customers might open up their frustrations in a Facebook or a Twitter page of a bank. So banks have to be very careful about their social media real web, the state. within social media banking segment, Twitter plays an important role. Though Twitter has been traditionally used by banks for very short and quick brand building messages. Some banks have gone ahead very aggressively in Twitter. For example, kotak Bank in India gives account balance, transaction history also obtains a checkbook request.

However, there is a widespread debate in the banking industry, whether traders should be real used for relationship building or for banking transactions. One more Social media channel us back bangs his YouTube channel however, can you compare music industry with banking industry in YouTube? Absolutely not. For example, some of See you again may touch 3 billion views in this planet soon. And compared to that hi yours YouTube views ranked in any banking industry is by State Bank of India with 97 million viewers. Many times, banks use YouTube or a video channel mostly for customer relationship, financial education, or broadcasting promotional offers.

YouTube video seen in the screen of Oh is by TD Bank Canada and us a financial education for mortgage and by now they have 49 million viewers. Having seen social media in banking, let's now talk about Micro size FinTech companies. The threat to the traditional banking is very visible now, with number of FinTech companies trading across the world. And these FinTech companies provide services such as peer to peer lending, deposits, payments, personal financial management, bailing, accounting, etc. In fact, most of these startup companies are called as unicorns and they have very limited staff members, but those guys are more tech savvy. Most of these fin tech companies are funded by venture capitalists and they connect very easily with the new generation as the baton is passing from Gen X, Gen Y to Gen Z.

Banks are finding very difficult to acquire new generation customers. So banks such as Wells Fargo, or bank of america and us, Lloyd's of Barclays in UK, less back or is there in Australia may like to either type with this FinTech companies, or some of these large banks are trying to buy these FinTech companies. Transparency market research such as that, a possibility in the global peer to peer lending market will be worth 900 billion US dollars by the end of 2024. And this is just to compare $26 billion in 2015. So the market is anticipated to grow at a CAGR or a growth rate of 48% till 2024. One of the leading example of p2p lending is a company called as Lending Club.

They have already crossed $33 billion by the end of 2017. And this can be compared as a billion dollars at the end of 2014. And these FinTech companies are running at a speed which very few banks can come up soon. Some of these FinTech companies will seek for a banking license, and they may eat up the market share of established High Street banks. I remember a story of 2005 when one of my friend from Singapore was expecting a check of hundred US dollar from an us organization. He got a mail in his post boards after 20 days of dispatch from California.

And when he deposited this check, Dan took 15 more days to credit him in this dollars. Finally, after 35 days, he got a credit of 78 US dollars, deducting multiple charges, which there was a PayPal all across the globe then, if PayPal didn't exist, he could have got his money in less than three to four working days. And that to me is much less charges. By the way, PayPal does business of 200 And 27 million accounts at the end of 2017. And it's growing rapidly. This is a huge number in comparison to large banks in the US, UK and Australia.

And they cannot imagine going beyond 50 million customer base. However, it may be only Apple to orange comparison