Social Media for Bank Investor Relations

Leveraging Media, Communications and Technology: Social Media and IR
Dave Hogan, APR, CFP
SNL Financial Bank Investor Relations Symposium
March 17, 2010
New York, NY

What is social media?

Social media tools for investor relations

Social media changes are revolutionary
“These changes (social media) are even bigger than those of 1928 (radio) and 1960 (TV).” Merrie Spaeth, Spaeth Communications,
Texas Banking Magazine, August 2008
4

Social media, like banking, is all about community and relationships
Community: Social media all about being connected with other people and building relationships
Conversation: Social media is about creating two-way dialogue with employees, customers, investors and other audiences.
Cost-effective: Social media expands the communication channels at nominal added cost.
5

Social media benefits banks
“Banks are increasingly realizing the need to implement a social media solution in order to differentiate themselves from the competition and to take an early stake in winning over the hearts and minds of the social network generation.”
Jesse Torres, “Community Banker’s Guide to Social Network Marketing,” December 2008
6

Social media supports the role of investor relations
NIRI defines investor relations as “a strategic management responsibility that integrates finance, COMMUNICATION, marketing and securities law compliance to enable the most effective TWO-WAY COMMUNICATION between a company, the financial community and other constituents … ”Source:National Investor Relations Institute

Why should bank IROs bother with social media?

Institutional investors, analysts are using social media
Average age of analysts, investors is younger than ever
Most analysts, investors fit into prime age group for social media (18-55)
Social media and mobile communications benefit analysts, investors who are affluent, tech savvy and travel frequently

Investors monitor social media
Question: Do you read postings on the following for company or business information?
Blogs
43%
Message boards
29%
Social networking sites
13%
Conclusion: Institutional investors seek information from a variety of sources and a growing number are looking online.
Source: Brunswick Group survey, September 2009

Social media’s growing influence
Question: Do you think that New Media such as blogs and social networking sites will play an increasingly important role in investment decisions in the future?
Yes, definitely
22%
Yes, probably
41%
Conclusion: The majority of institutional investors (63%) think social media will play an increasingly important role in investment decisions in the future.
Source: Brunswick Group survey, September 2009

Reg FD still applies
Social media is not a substitute for traditional forms of disclosure
Apply same policies and procedures to social media that you do to other disclosure channels
Social media’s risk level similar to IR phone calls, e-mails and one-on-one conversations

How to implement social media into your bank’s investor relations program

Step one: monitor social media

Tools for monitoring social media

Step two: it’s all about Twitter

Twitter is most popular IR social media service
Twitter use for IR grew 175% last year (Q4 Web Systems)
Twitter easiest to set up and use
Twitter ideal for announcements such as earnings, conference calls, webcasts

Step three: consider blogs and Facebook

Blogs and Facebook for IR
Blogs offer more depth of content than Twitter; no 140-character limit
Blogs are most time-consuming social media tool
Despite popularity, Facebook not widely used for IR

Leveraging online videoDell includes video of CFO discussing earnings results each quarter on its IR blog and on YouTube

Step four: leverage your work with sharing sites

Sharing sites expand reach of existing IR information
Use social sharing sites to leverage existing disclosure items and expand your audience

Social media best practices for investor relations
Only disclose material information on social media that has already been disclosed through traditional channels.
Use Twitter and other social media to announce news releases, IR conference appearances, etc.
Monitor social media to watch for rumors, false information that could impact stock prices.
Leverage existing IR work with sharing sites.
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Social media action steps for bank IROs
Begin systematic monitoring now
Create a social media policy for employees
Open personal Twitter, Facebook accounts and get familiar with how they work
Start reading blogs

Social media action steps for bank IROs
Add sharing features to your IR Web site
Leverage existing presentations, videos
Start with Twitter for IR purposes
Consider a blog and/or Facebook only if sufficiently staffed and have tech savvy

For more information
Dave Hogandhogan@ffin.com325-660-5249Twitter: @dahoganLinkedin: http://www.linkedin.com/in/dahogan76

Resources
Q4 blog: http://www.q4blog.com/
IR Web Report: http://www.irwebreport.com/
NIRI social media resources: http://www.niri.org/findinfo/Social-Media.aspx
Mashable: http://mashable.com/
Brian Solis blog: http://www.briansolis.com/
IR Café blog: http://ircafe.com/IR Musings blog: http://investorrelationsmusings.blogspot.com/

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Social Media for Bank Investor Relations

by Dave Hogan on Mar 17, 2010

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Social Media for Bank Investor Relations — Presentation Transcript