Beleaguered financial institutions in search of a way out and successful ones looking for the next winning formula need only tune into their markets.  What are they saying?

Factor the Fs:  There’s a whole parallel economy out there riding on the social interactions of families, friends and fans, which has largely been ignored by financial institutions.  It’s time that banks acknowledged the power latent in 700 billion monthly minutes of social networking on Facebook, or that of the   more than 250 million people who engage with Facebook across more than 2.5 million external websites each month and routinely make or break brand reputations by simply clicking a thumbs up or down icon. Instead of dismissing it as irrelevant, banks must ask how they can derive economic value from “social”. For instance, can they study ratings and feedback to discover what customers really need? Can they find new insights to old problems in social conversations? Where traditional banking channels have failed to deliver – beyond creating profits for the classes – do social channels, which enjoy a high degree of trust, hold the key to reconnecting banking institutions with the masses?

Consider the Cs: Customers are saying to banks, “whatever you do, don’t compromise convenience and cost”. With customers reeling under the hardship of unemployment and inflation, banks must refrain from imposing insensitive charges or other inconveniences.

Adhere to the As: Affordability and accessibility have never been more important. Banks should exercise control over spending so that they can deliver services at affordable prices and over low cost, accessible channels like the Internet and mobile.

Imbibe the Is: Movements such as Wall Street activism are an expression of consumer individuality and investor awakening.  Customers are telling banks that they will not be ignored, that their individual needs must be met and their opinions respected. In devices such as the iPad, iPhone and iCloud, banks have a way of reaching out to customers and tapping their collective individuality to collaborate, innovate and co-create for the future.

Note the Ns: The markets are also telling financial institutions that it’s either now or never for getting their act together. Banks need to arrest the slide with a combination of freethinking, wise action and prudent policies that put long term benefits over short term interests.