Banks A-Twitter for Tweeting

NEW YORK (TheStreet) -- The last thing any Twitter user expects to receive after telling a bank to stick its overdraft fee where the sun don't shine is a polite, "Anything I can do to help?" from a bank customer service rep.

But that's exactly what some critical customers are encountering online, as banks expand customer service operations into the digital frontier.

Plenty of businesses have sought to capitalize on growing social media forums like Twitter, the microblogging site that allows users to "tweet" messages of 140 characters or less to "followers" online. That stodgy, behemoth banks like Bank of America (BAC Quote) and Wells Fargo (WFC Quote) are among them may seem more surprising to some.

Twitter: The Good Source: Twitter.com

Twitter: The Bad & the Ugly Source: Twitter.com

BofA and Wells have set up pages on Twitter to reach out to disgruntled customers, and be available to those who prefer tweeting questions or complaints, rather than deal with them on a phone call or branch visit. Customer service representatives even change profile photographs and introduce themselves by first name when changing shifts.

Toronto Dominion (TD Quote) doesn't have a page like that, but still reached out to Lisa Tibbitts after she posted two tweets about what she considered shoddy online banking services. A representative from a branch in Pelham, N.Y. called her twice to find out the issues, and inform her that the service was set to be improved in September, offering to help Tibbitts learn the new features.

"TD Bank handled the situation in exactly the right way," says Tibbitts, who happens to work in public relations. She tweeted about the positive turn of events to over 400 followers, many of whom would be interested to know since she represents financial services firms.

Social media experts say interest in online media like Twitter has taken off in the financial industry. Rosemary Ostmann, who counsels banks on strategies, recently gave a presentation on "building buzz" using Twitter at an American Bankers Association forum.

"There was a huge amount of interest," says Ostmann, who runs public relations firm Rose Communications. She adds that banks already building a presence on Twitter are "ahead of the curve."

Whether or not they're already on the site, banks are keeping a close eye on competitors' strategies to avoid pitfalls. They hope to capitalize on Twitter's popularity to win new business, and win over the hearts and minds of consumers who are frustrated with taxpayer-funded bank bailouts and what they perceive as greedy and unscrupulous practices. It could be an uphill battle, if David Broudy, who posted an impolite tweet about a transaction with Bank of America on Aug. 8, is any indication.