by John Greenwood.

One of the biggest challenges facing the banking sector could become a transformational opportunity for players that get it right.

The advent of social media such as Facebook “has created a tipping point” in the industry as more and more bank customers migrate to increasingly popular networks, says John MacKinlay, a partner with PwCs’ financial services team.

The challenge for the banks is they are already way behind other industries in terms of understanding and utilizing the opportunities created by technology, which has created a divide between them and their customers.

“Banks have been slow to embrace social media because, as you can imagine, it’s a whole new way of thinking about your business,” Mr. MacKinlay says.