Illustration today of the power of online protest when the bank HSBC today agreed to reverse it's decision to charge full interest on graduate overdrafts.
HSBC had planned to scrap a three-year interest-free overdraft deal for graduate accounts claiming this was a "commercial decision", made in response to bad debt and the misuse of such accounts.
In response students claimed they joined the bank in the belief that they could take advantage of such a free overdraft to tide them over between leaving university and starting work.
Instead of using traditional campaign techniques, the student protest developed through Facebook, with the "Stop The Great HSBC Graduate Rip-Off" group having so far secured over 5,000 members by the time HSBC caved in. The campaign was initiated by the National Union of Students (NUS) and creates a new image of student protest in comparison to stereotypical images from the 60's and 70's.
As a result of the campaign today HSBC issued a statement that said:
“Like any service orientated business we are not too big to listen to the needs of our customers. Following the feedback from our graduate account holders, both directly and via the National Union of Students (NUS), we have taken the decision to freeze interest charging on 2007 graduates’ overdrafts up to £1500 and refund any interest charged in August. We are also pleased that we will be working with the NUS to enhance our new account offer so that it fully reflects the needs of recent graduates”.
Examining what happened, it looks like the campaign was successful because:
1. Facebook enabled them to assemble a large number of people very quickly. Students and recent graduates writing on the Facebook website threatened to switch to other banks and called for boycotts at freshers' fairs as well as wider days of actions aimed at banks.
2. The timing of the dispute was particularly embarrassing for HSBC - as banks are seeking to recruit new student customers - who they hope will stay with them in the long-term - at the beginning of the academic year.
Whilst Facebook is in the news for other reasons from time to time, today's student victory over HSBC illustrates the power of online social networks to affect change. This will not be the last we hear of the power of Facebook!
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