By Vincent Piron, Partner, KPMG in Belgium

Nobody – not even the mighty Zuckerberg himself – can predict how social networks will evolve over the next 5 years, let alone the next 50. But one thing is certain: social networking will be a game changer for banks.

That being said, peering into our crystal ball, we think there is ample evidence to support a few likely scenarios that will radically alter the business model for banks.

By Frank Meylan, Head of IT Advisory, KPMG Brazil

Brazilian banks are keenly aware of the power of social media.

From early days, Brazilian banks leveraged social media to communicate a wide range of ‘brand building’ messages to promote their sustainability actions, charity programs, hiring opportunities and new service offerings.

By John Hair, Director, Risk Consulting and Digital Services, KPMG LLP (US)

Few industries are as highly regulated as finance. Retail banks – particularly those that straddle multiple jurisdictions – are generally beholden to a complex web of local, state and national regulations. And the scope is only growing.

So it may seem counter-intuitive for the industry to call for enhanced regulation and guidance. But that is exactly what is needed to respond to the burgeoning growth of social media in the banking industry.

By Ms. Xie Hong, General Manager, Mobile Finance Department, Shanghai Pudong Development Bank (SPD Bank)

In China, much like the rest of the world, social media is quickly changing the way banks interact with their customers. More than a dozen Chinese banks – including SPD Bank – are now active on social media. In particular, Chinese micro-blogging sites (similar to Twitter) are increasingly being seen as a significant opportunity to change the dynamic between banks and their customers.

By Tim Oakes, Senior Manager, Service, Analysis & Reporting, Royal Bank of Scotland

Talking is easy. It’s listening that banks don’t always do well.

For many banks, social media represents an innovative and cost-effective channel for ‘pushing’ out marketing messages and promoting their brands. A tell-tale sign is banks whose social media strategy is being led by Sales and Marketing, rather than Customer Service or Experience professionals.

• Week 7: The Data Debate – 5 Big Challenges for Banks
• Week 6: Banking on Social Media. Secret to FNB’s Success
• Week 5: Through the eyes of the customer
• Week 4: Integrating IT to enable value in Social Media
• Week 3: What every Board Member should know about Social Media
• Week 2: A Measured yet Active Approach to Social Success
• Week 1: Are Retail Banks Ready for Social Media?