With Web 2.0 services like blogs and virtual communities actively identifying ways to transform themselves into a form of online bank to earn profits from transaction fees, it will be fair to assess that banks may benefit more by adopting Web 2.0

Through integration of social-networking sites with online banking, lending or borrowing money from friends on the social-networking sites could soon become a reality. Aiming to attract the young customers, traditional banks are  investing and taking advantage of these services. The increasing evidence of growing popularity of these services with the younger group points towards exactly where that market is spending its time. But for financial service firms this doesn't imply going to a social networking site but perhaps adopting some philosophies instrumental in making those sites popular.

Web 2.0 presents an opportunity for delivering information in a more effective manner, one that is also more compelling and responsive than before. With financial institutions working towards improving ways to engage customers online the key advantage presented by Web 2.0 is the ability to offer just that - enagaging customer experiences that lead to adoption of online services. Equipped with the potential to impact all facets of financial services benefits are far reaching, from differentiating the brand to accelerating and improving decision making by delivering rich information, both intuitively & visually.

Nonetheless despite visible advantages attached to Web 2.0 technologies banks do not seem to be embracing it enough. One of the major reasons could be attributed to the fear of change associated with using new technology, but then a culture of reticence is a matter of fact with banks. Also owing to the siloed nature of banks and financial institutions, managing a cohesive web presence might be a daunting task. Though security and privacy risks associated with Web 2.0 are no different than other web activities, but for the banking industry security and trust are the pillars it stands on. Till the time it is not indicated that neither is compromised by Web 2.0 capabilities, adoption of this technology by the banking industry seem to be limited.