Social Media & Financial Services

The Goo

d

The Bad

The Ugly

Social Media & Financial Services

@vanhoosear @hb_agency

THE GOOD, THE BAD & THE UGLY

Question 1: What is Social Media?

• FFIEC: “interactive online communication in which users can generate and share content through text, images, audio, and/or video.”

• Me: Ultimately, social media, and more specifically social media marketing, is about turning your customers and influencers into salespeople. *

* Red Asterisk #1• Hear the alarm

bells?• Don’t worry, we’ll

come back to the SEC, FTC, testimonials, etc.

• 3 Basic Risks:– Compliance– Reputation– Operational *

* Red Asterisk #2• I’m just a PR guy• My wife manages

our finances• This isn’t legal

advice• etc.

Question 2: Should I Be Social?

Question 2: Should I Be Social?

Question 2: Should I Be Social?

Question 2: Should I Be Social?

• Research from ISM Search & Social found that 97% of people say their buying decisions are influenced by social groups

Question 3: Can I Be Social?

YES

Question 4: How Can I Be Social?

•Safely•Confidently•Effectively•Efficiently

Or In Other Words…

But Back to Questions 2 & 3• You can engage in social

media with the right plan in place

• Whether you should or not depends on– Your interest, ability & time– Your risk exposure & tolerance– Your clients’ presence online– Your support team– Your budget

Some Lessons

Real Time Marketing RealityWHAT IT SEEMS LIKE

WHAT IT ACTUALLY IS

http://www.thehopkinsonreport.com/2013/02/thr-223-super-bowl-ads-oreos-and-blackouts-why-your-brand-needs-a-social-media-war-room/

* Red Asterisk #3

• Real time marketing, you say?

• Fat chance!• Not while the

lawyers still live!

What About Financial Services?

• 2/3rds of asset managers and insurers surveyed are using social media

• Most of them are “Promoters” in kasina’s Social Media Marketing Maturity model (stage 2 of 5)

• 86% are focused on using social media to improve brand awareness

• 64% collect social media activity data• 61% have a formal social media plan• 36% provide guidance for wholesalers on using

LinkedIn to connect with financial advisors

http://kasina.com - March, 2014 Report on “Integrating Social Media Engagement to Drive Business Results”

Still Plenty of Room…• Only 4% of firms surveyed encourage

their employees to post their own social content on behalf of the firm

• 21% permit their employees to participate in social media for professional purposes

• Only 4% integrate social media activity into their CRM systems

http://kasina.com - March, 2014 Report on “Integrating Social Media Engagement to Drive Business Results”

Biggest Social Media Mistakes• Fallow social media properties• No content backlog• No team & no budget• No editorial calendar• No decision tree• No crisis response plan

http://blog.talkdesk.com/5-social-media-disasters-and-how-to-avoid-themhttp://willvideoforfood.com/2013/12/10/bank-of-america-is-your-grandmother-on-twitter/

• Does the sleaze wash off with a regular shower, or do you have to use something special like babies tears? #AskJPM

• I have Mortgage Fraud, Market Manipulation, Credit Card Abuse, Libor Rigging and Predatory Lending. Am I diversified? #AskJPM

• Did you have a specific number of people’s lives you needed to ruin before you considered your business model a success? #AskJPM

• When Jamie Dimon eats babies are they served rare? I understand anything above medium-rare is considered gauche. #AskJPM

• Do you have a secret jail in your offices so your executives get at least one chance to see the inside of one? #AskJPM

• What’s the best way to get blood stains out of a clown suit? #AskJPM

• What’s it like working with Mexican drug cartels? Do they tip? #AskJPM

• Do your clothes fit better since you don’t have the added weight of a soul? #AskJPM

• Can I have my house back? #AskJPM

http://thefinancialbrand.com/35532/8-lessons-from-jpmorgan-twitter-disaster/

So what did they do wrong?

What Have We Learned?• Don’t put your interns in charge of social

media• Don’t be robots: SPEAK HUMAN• Big brands make big targets• Timing is everything• Don’t take it personally, but be personable!• The most creative, spontaneous campaigns

are usually anything but spontaneous

Minimizing Compliance Risks

• Know your relevant regulations – acronym soup– TISA– Fair Lending Laws– RESPA– FDCPA– FTC Act– FDIC– EFT Act– Bank Secrecy Act– Community Reinvestment Act– Gramm-Leach-Bliley Act– CAN-SPAM– COPPA– Fair Credit Reporting Act– NLRAhttp://www.fdic.gov/news/news/financial/2013/fil13056a.pdf

Minimizing Compliance Risks

• Your social media policy is critical– Clearly define what can and cannot be said– Understand key SEC and FTC guidelines

• RegFD Updates– Predisclosed social media channels can be considered fair

disclosure• Updated Dot Com Disclosures governing ads and

sponsored content– If you got paid to post it, you must disclose that fact in the

post itself• New SEC guidance on testimonials

– Testimonials are still as verboten as actual financial advice, but– Links to third-party sites with testimonials can be considered

compliant, but – Proceed at your own risk… *

* Red Asterisk #3• Careful with that “Like” button – could

it be considered a testimonial?• Careful with your recordkeeping –

could your social media usagefall under the Advisers Act?

• Regularly update your socialmedia policies and procedures in light of new tech and new regulations

Minimizing Compliance Risks

• A good social media policy isn’t enough!• Get your legal team on board early to

scope out content areas that1. Don’t need review2. Will require managerial review3. Will require legal review4. Cannot be addressed via social channels

• Build a library before beginning• Have a decision tree / response protocol

in place before beginning

Minimizing Reputation Risks

• Consider both your corporate and personal brands• Understand the technology you’re using• Train your team on phishing & identity theft • Be personable, but don’t

mix work & play, tech-wise• Use scenario planning• Third-party tools are great,

but carry risks• Employee social media

usage policies are critical (but be careful about notcrossing the NLRB)

Minimizing Operational Risks

• Don’t do a run-around with IT; work closely with them as you develop and revise your policies

• Social media is ripe with malware and phishing attempts

• Be sure to include social media in any incident response protocol or crisis plan

Best Practices• Involve the Bosses• Incentivize the employees• Stay on brand (corporate and

personal)• Measure before, during and after• Social media isn’t free! But MBOs and

KPIs will help you justify your budget• It’s not just for marketing, but also

customer support

Thanks

• John Refford• Mike Langford• Mike Spataro• Risa McMahon• Adam Zand• Tinu Abayomi-

Paul

THANK YOU!

@vanhoosear @hb_agency

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