It has been reported throughout the Internet this week that due to pressure applied through a group set up on social networking site Facebook HSBC has performed a U-turn on a proposed change in student overdraft rates. The plan was to abolish the interest free overdraft for recent graduates and replace it with a 19.9% interest rate. But after the group was set up on Facebook opposing the change which attracted over 5,000 members HSBC decided against it and refunded anyone who had already been affected.
Is this a sign of things to come or just a product of the current frenzy around social media? HSBC claim it shows “they are not too big to listen to the needs of customers.” But what was it that actually convinced them to make the change? The 5000 people who joined the Facebook group, or the fact it received national press attention through the BBC and countless other news sites?
My guess it is the later and rather than a sign of people power it is the weight of the news networks which has forced this move. HSBC more concerned with their image in the eyes of the masses rather than 5000 students on a website.
It does go to show however how the medium of social networking can be used to add weight to a greivance and force action. I’m sure we will see plenty more of these groups sprouting up in the coming months but suspect not so many will get the mass exposure needed for them to have any great impact. In the meantime HSBC earn brownie points for listening to the “little people” and a few skint students get to live interest free for another few months!