As you know I am IT consultant, and I make my salary working hard in that role. But we all dream to make something more to gain some extra money. My passion since my teenager phase is the share market, making money trading always fascinated me. I am not a great trader and I have to confess I only trade for hobby, I’ve never made real money from share market, but it still putting a lot of time on it.
If you never played with share market before be careful from this point, because I will provide some information that can lead you to a no return trip. If you are not familiar with the terms I am using here, start from this website.
Why am I talking about stock market and trading? Well, my post this week aims to help the Banking sector with external blogging strategies and, as you know the majority of banks have three main sectors: Banking (obviously), Insurance and Investments. My focus is the investment sector, which normally is responsible for only 10% of the total profit of the organization. However, after the online trading approval in early 2000 the number of traders increased by 260% world wide.
1 – How banks make profit in the Investment Sector?
All Australian big banks (suncorp, westpac, commonwealth, nab, anz) operates as a broker. A broker is a bridge between the investor and the Stock Market (in Australia called ASX – Australian Security Exchange). And they make their profit from the trades, which is a transaction between the customer and ASX. In the end bank don’t care if the customer win of loss money in the ASX (of course they prefer success to keep the investor active). In the end the important to banks is keep the customer buying and selling. The customer can also delegate all the investment process to banks but that is not fun and that is not the focus for my blogging strategy.
2 – How keep investors always active?
As a trader I have to read a lot about companies operating in the share market. Information is always the key. For example if I am investing in the airline company QANTAS I need information about how company is going and any impact that may have in their stock price.
If the investor is not comfortable enough he will not trade (sell/buy) and consequently the bank as a broker will not receive payments.
3 – External blogging strategy to increase the number of online traders:
(A) Contacting successful traders to blog about the market. There are thousands of excellent traders blogging for free in the internet, and as a junior trader I am always reading the blog of those stock market gurus (here is a sample list of this blogs). If the bank contact them and pay for blogging in the name of bank, I am sure the bank will increase the number of traders.
(B) Using web2.0 features such as RSS, tagging and Feeding to classify information about specific companies in the share market will help customer to easily feel comfortable to trade based on that information. Consequently the bank’s revenue increases.
(C) Traders can easily identify the best bloggers for their goal using the number of visitors per blogger.
In a quick visit to the big five banks’ online brokers websites(suncorp, westpac, commonwealth, nab, anz) I can’t see any manifestation towards stock market blogging and in my opinion that’s a fantastic area to be explored.
Is that make sense? Can you see that opportunity to be explored by our banks? Perhaps not only for banks but ASX itself is not even using RSS to enable customers to subscribe to share market’s information.