/ BANK TECH /
LINKEDIN’s UNSEEN IMPACT
It’s used everywhere in banks, now, and increasingly is melding with CRM, which brings some IT challenges By Sam Kilmer, Cornerstone Advisors
in kedIn is becom ing a n 800 pound gorilla impacting banking. Ye s , b a n k i ng. Even for s ome veteran bankers not nor ma lly engaged in social media or inclined to care about technology trends, this is an important development. LinkedIn rose up organically as an app used mostly by Human Resources, then by lenders and community outreach leaders, and, ultimately, by the banking C-suite. The phenomenon is that the technology managed to inf iltrate the workplace without information technology or any line of business driving or overseeing it. With the rising importance of data and social media in business relationship development and now with Microsoft’s $26 billion acquisition of LinkedIn, it may well become a key part
of many banks’ vendor management programs. How did banks get here?
LinkedIn’s first four stages 1. The “Eddie Haskell” connec tion stage. Techies, headhunters, Realtors, vendors, consultants, and that “kid you met at summer camp” all united to slam inboxes with “since we trust each other” connection invitations. 2. The “if Human Resources builds it, recruits will come” stage. Human Resources began using LinkedIn to recruit new employees and worked to get LinkedIn pages for their banks, if just to protect their recruiting image. Realizing the power of information, references, and targeting capabilities, LinkedIn’s use grew naturally and at the expense of less social Human Resources’ recruiting
December 2016/January 2017
platforms. For a sense of how dramatic this shift has been, recruiting platform Monster was once worth $8 billion and was still worth $5 billion in 2007 as LinkedIn began its ascent. Monster recently sold in a $429 million fire sale, a valuation below one-times revenue. By contrast, the LinkedIn sale to Microsoft is valued at eight-times revenue. At a recent roundtable of banking industry human resources executives, 100% reported using LinkedIn every day. And what functioning competition is there now to LinkedIn? 3. The “show me the money” stage. After initially networking for their jobs, loan officers saw the marketing value within their personal networks. Some commercial and mortgage lenders took this to new levels, and LinkedIn began