What lessons can we learn from traditionally conservative institutions like central banks’ embrace of social media?

As we explained in our introductory blog post, Gustanomics is all about recognizing that, in a world where banking services are increasingly app-driven, being ‘liked’ and ‘favorited’ is as important for customer retention as delivering high-quality products and services.

Is there any better proof of this than the most conservative of banking institutions – the central bank – taking to social media in search of likes and followers? 

The European Central Bank recently made headlines when it joined popular new social network Bluesky in an effort to diversify its social media presence. Recognizing a shift in how younger generations consume information, an increasing number of central banks are joining the ECB by finding their voice on X/Twitter, Instagram, TikTok and Bluesky. And the esteemed institution is far from alone: approximately 100 central banks from various jurisdictions are now on Instagram, for instance; with content ranging from guidance on avoiding scams (US Federal Reserve) to a celebration of the Euro 2024 football championship (The National Bank of Romania). 

Of course, this is driven both by a desire to reach younger audiences, particularly Gen Z, who consume information digitally. But it’s also a recognition that, in the age of deepfakes, AI and politicized platforms, there is a very real threat of misinformation.

How this applies to all banks

Gustanomics is the strategy of valuing digital engagement metrics – such as ‘likes’ and ‘favorites’ – to strengthen customer relationships. But it also goes beyond that. It’s about treating every customer interaction with their bank (the vast majority of which now happen through apps) as an opportunity to deliver a proactive, personalized, and rewarding banking experience – with the traditionally relied-upon products and services coming as part of this excellent and innovative banking experience. 

It’s also about learning the lessons from consumer brands when using customer data to create a banking experience that feels intuitive, fun, and like a mutually beneficial relationship.

The four key pillars of Gustanomics also point to the same approach that central banks are taking:

1. Need: Offering essential, user-centric services.

2. Incentive: Encouraging positive behaviors through rewards.

3. Status: Providing exclusive, shareable experiences.

4. Engagement: Creating interactive and entertaining content.

If even central banks – the most traditionally conservative financial institutions – are embracing social media, all banks should take note. These institutions aren’t just chasing followers; they’re responding to a fundamentally different form of bank-consumer interaction, and how trust and credibility are built in the age of Gustanomics.

Contact us to learn how your bank can drive meaningful engagement in the digital age.