ICICI Bank has been the first to use social media like Facebook as a platform for its banking services in India. The account lets friends immediately split a bill and supports buying tickets online for a group. Several international banks are using social media platforms for extending banking services, allowing funds to be transferred among friends. "Banks have not yet figured out how to reward loyal customers who can be influencers. Typically, banks keep asking customers to 'like' their page, but there are only so many pages that people follow and they end up regularly cleaning the sites they follow," she added.

According to Lochan, banks have traditionally been terrible in using data in selling to customers. "Social media allows banks to target customers based on behaviour. For instance, a bank can develop its systems in such a manner that the offerings change with the relationship status of the person like offering a home loan after a marriage. Customers are more comfortable when targeted offerings are made by computer systems rather than have direct selling persons looking at customer data," said Lochan.

"Banks are coming out with responsive designs for their websites which cater to three screen sizes — mobile phones, tablets and desktops. The most important functions for the customers are the ones on top," she said.

According to Lochan, it is not just social media like Twitter and Facebook, but even work-related sites like LinkedIn. American Express has successfully used LinkedIn to target business customers.