Addressing the Specific Challenges of social media in Financial Services Alpesh Doshi Fintricity
Agenda Introduction to the Social Media Landscape Regulatory and Legal Issues Managing Risk in the Social Media World
What is Social Media? Social Media is an attitude not a technology. It’s about enabling and encouraging participation through open applications and services..... Ian Davies (http://iandavis.com/blog/2005/07/talis-web-20-and-all-that ) It’s about ........ Interaction It’s about ........ Collaboration It’s about ........ Content Sharing
Social Media Landscape Large and growing social media applications Consumers across the demographic (18-40) Social Networks are becoming a part of daily life Financial Applications starting to emerge......
Social Media Landscape P-to-P Lending PFM SOCIAL MEDIAWEB 2.0 - UGC Blogging Social Networking Virtual Worlds Customer Reviews Micro Blogging Widgets Predictive Markets Photo / Video Sharing RSS Podcasts Inspired by the McCann Social Media Tracker Wave .3
How is this relevant to Financial Services? Finance sites are sprouting everywhere.... Really lead by US (although regulation is different) Social Media sites provide online tools and services to manage finances
Why use Social Media? Engage and Interact with Customer To help Marketing and Brand Development Build Trust in your Brand Understand needs and drivers of consumers Driver loyalty and advocacy Input to Product Development Social Networks Applications Blogs Monitor How?
Regulatory Overview Financial Services and Markets Act 2000 Regulates Advertising of financial products Conduct of Business Source Book (COB) 4 Clear, fair and not misleading Warnings on Past & Future Performance Specific Information when a direct offer is communicated
FSA Remedies - recap FSA can require amendment of a promotion Require an Advertiser to contact customers Fine and publicly name offenders
Risk Assessment and Management When is the use of Social Media considered to be promotion? Case by Case basis Where does the content come from? UGC or not? Role of Compliance to answer
Legal Protection It’s a new business world, but same legal principles Involve compliance at design stage Not just the wording but design and structure Anticipate future uses
Legal Risk Management Anticipate potential risks Use and take down policy Role of Community Managers Employee use Policy
Overview of Privacy Legislation Data Protection Act 1998 Regulates processing of personal data Meaning of Personal Data? Meaning of Processing?
Overview of Privacy Legislation Who is the Data Controller? What are its legal obligations? Obtaining Consent (from the data subject) Information to be provided to subjects Security
New Privacy Guidance Article 29 Working Party Specific Guidance on Social Network Providers Best Policy Recommendations Warning to Users regarding privacy risks when uploading information Reminder to users if uploading other individuals’ data, they need consent
Conclusions Social Media is already here! Brands are keen to reach their customers and learn more about them Conversations and Interactions are common outside financial services Driven by brand, transparency, interaction New business world same legal principles Need to involve legal and compliance from design stage Monitor use of social media and social networks Use of terms and user policies