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Not All Banks Reaping Web 2.0’s Potential

While Web 2.0 tools can help banks to collaborate with customers, partners and employees in a manner that is more responsive, compelling and effective than ever before, lack of experience and fear of change may hinder some institutions from realizing all that Web 2.0 has to offer.

Kealey, Adobe: Generally speaking, the main obstacle seems to be that institutions are hesitant to improve one section of their Web site too drastically for fear of making the other sites look even more out of date. Given the siloed nature of banks and financial institutions, many companies find it simply impossible to manage their Web presence as a cohesive whole.

Q: What are the security, privacy and legal issues, if any, of Web 2.0?

Nelson, TowerGroup:The fact that Web 2.0 relies on users contributing all of the data certainly does raise some issues. ... If any firm, in any industry, decides to let its employees blog publicly, they need to first consider the risks and create careful policies. Blogging has become common in the technology industry, and every major technology firm that communicates this way (e.g., Microsoft, IBM, Sun Microsystems) does have well-crafted blogging policies in place.

Bloor, Hurwitz & Associates: I don't see the legal or security issues as any worse than those associated with any other Web activity — by and large, they are the same. Where a company sets up a wiki, it is best practice to declare a usage policy of all postings to the wiki, otherwise you are open to copyright disputes. But that has always been best practice for accepting postings. There is a particular issue, though, for the banking industry. Security and trust are pillars of the banking industry, and there must be no indication that either is compromised by any Web 2.0 capability.

Peggy Bresnick Kendler has been a writer for 30 years. She has worked as an editor, publicist and school district technology coordinator. During the past decade, Bresnick Kendler has worked for UBM TechWeb on special financialservices technology-centered ... View Full Bio

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