SBS's use of social media helping overcome geography

Wayne Evans.
Wayne Evans.
The  growth of social media was breaking down the barriers of having a head office at the bottom of the country, SBS chief executive Wayne Evans said yesterday.

All channels of the Invercargill-based bank had been overwhelmed following Mr Evans giving the go-ahead to spend $1500 sending out an email to members of SBS.

In the email, SBS announced it had become the first retail bank to break the psychologically-important 5% barrier for fixed-term mortgages.

The bank offered 4.99% fixed for five years.

However, Mr Evans said it was not just about sending the email. The bank encouraged members to share the offer with their friends and family.

''We articulated the value of being a member. We can do that through preferential pricing and our five-year fixed rate of 4.99% is an example of that.

''The competition is struggling to match the offer but they need to make difference between making a profit for their shareholders from their customers and we don't. Our customers are our shareholders.''

Mr Evans had gained board approval to provide immediate benefits to shareholder members through the preferential pricing.

The response had meant extra staff had been employed to deal with demand, he said.

SBS aimed to engage with different generations in a family and social media was one way of achieving that.

Six months ago, SBS had fewer Facebook friends than staff.

Following an improved social media campaign, SBS now had ''six figures'' of likes on Facebook.

But to be successful with social media, organisations had to have a compelling offer, Mr Evans said.

It was not enough to just send out emails or set up Facebook.

SBS was engaging with its members from Invercargill to Auckland.

As the new chief executive, Mr Evans was focusing on increasing the way people throughout New Zealand could engage with SBS.

More mobile managers were being employed, a rethink was being carried out on where new Christchurch branches would be sited, and staff throughout the country were being involved in the new plan.

Finance Now, the consumer finance arm of SBS, had 60 staff in Invercargill but 70 in Auckland dealing with tens of thousands of accounts.

SBS was aiming to convert those Finance Now customers in Auckland to SBS members, using other services such as mortgages.

Finance Now was also dealing in motor vehicle finance, something Mr Evans described as an exciting move.

''The technology developed for Finance Now's retailers is being applied to motor vehicle dealerships and is being well accepted.''

People applying for Finance Now credit could have a decision in about five seconds as inbuilt credit checks were completed, he said.

The same technology allowed people to buy a motor vehicle.

People would also apply for finance online at home and have their loan approved before they went shopping.

Funds Administration New Zealand, another SBS subsidiary, had recently formed a relationship with North Island accounting firm Staples Rodway.

SBS now had a northern distribution network to complement the existing South Island network.

Funds under management had growth from $530 million to $800 million since the agreement was signed with ambitions to grow further, Mr Evans said.

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