Social Media for Bank Investor Relations

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This presentation is from the SNL Financial Bank Investor Relations Symposium in New York on March 17, 2010. It describes how investor relations departments at banks and other financial services companies can incorporate social media tools into their investor relations and corporate communication programs.

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  • The concern I would have with sending out a disclaimer in a series of tweets, is what if some of the tweets containing forward looking information are retweeted by others, but the disclaimer is not? Or if someone is looking at the tweet stream live but joins in after the disclaimer has been made? Is the onus on the reader to seek out the disclaimer in prior tweets? I think not.
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  • Thanks, Trevor, for your comment. I understand your point, especially about disclaimer statements, but many public companies are finding Twitter useful for making announcements, usually including a link back to the full news release. EBay and a few other companies send their disclaimer in a series of tweets prior to discussing conference call results on Twitter. For a fuller discussion of Twitter for IR purposes, take a look at this report from Q4 Web Systems: http://bit.ly/cUvnjI.
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  • On slide 17, I agree that Twitter is easy to set up and use and that it has been more readily adopted for IR than other social sites. However, I am not sure Twitter is ideal for announcements. Users are very limited in what they can say due to the 140 character limit (no room for forward-looking statement disclaimers, or even links to such).
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Social Media for Bank Investor Relations

  1. 1. Leveraging Media, Communications and Technology: Social Media and IR<br />Dave Hogan, APR, CFP<br />SNL Financial Bank Investor Relations Symposium<br />March 17, 2010 <br />New York, NY<br />
  2. 2. What is social media?<br />
  3. 3. Social media tools for investor relations<br />
  4. 4. Social media changes are revolutionary<br />“These changes (social media) are even bigger than those of 1928 (radio) and 1960 (TV).” Merrie Spaeth, Spaeth Communications, <br /> Texas Banking Magazine, August 2008<br />4<br />
  5. 5. Social media, like banking, is all about community and relationships<br /><ul><li>Community: Social media all about being connected with other people and building relationships
  6. 6. Conversation: Social media is about creating two-way dialogue with employees, customers, investors and other audiences.
  7. 7. Cost-effective: Social media expands the communication channels at nominal added cost.</li></ul>5<br />
  8. 8. Social media benefits banks<br /> “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.”<br /> Jesse Torres, “Community Banker’s Guide to Social Network Marketing,” December 2008<br />6<br />
  9. 9. Social media supports the role of investor relations<br />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<br />
  10. 10. Why should bank IROs bother with social media?<br />
  11. 11. Institutional investors, analysts are using social media<br /><ul><li>Average age of analysts, investors is younger than ever
  12. 12. Most analysts, investors fit into prime age group for social media (18-55)
  13. 13. Social media and mobile communications benefit analysts, investors who are affluent, tech savvy and travel frequently</li></li></ul><li>Investors monitor social media<br />Question: Do you read postings on the following for company or business information?<br />Blogs<br />43%<br />Message boards<br />29%<br />Social networking sites<br />13%<br />Conclusion: Institutional investors seek information from a variety of sources and a growing number are looking online.<br />Source: Brunswick Group survey, September 2009<br />
  14. 14. Social media’s growing influence<br />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?<br />Yes, definitely<br />22%<br />Yes, probably<br />41%<br />Conclusion: The majority of institutional investors (63%) think social media will play an increasingly important role in investment decisions in the future.<br />Source: Brunswick Group survey, September 2009<br />
  15. 15. Reg FD still applies<br />Social media is not a substitute for traditional forms of disclosure<br />Apply same policies and procedures to social media that you do to other disclosure channels<br />Social media’s risk level similar to IR phone calls, e-mails and one-on-one conversations<br />
  16. 16. How to implement social media into your bank’s investor relations program<br />
  17. 17. Step one: monitor social media<br />
  18. 18. Tools for monitoring social media<br />
  19. 19. Step two: it’s all about Twitter<br />
  20. 20. Twitter is most popular IR social media service<br />Twitter use for IR grew 175% last year (Q4 Web Systems)<br />Twitter easiest to set up and use<br />Twitter ideal for announcements such as earnings, conference calls, webcasts<br />
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  27. 27. Step three: consider blogs and Facebook<br />
  28. 28. Blogs and Facebook for IR<br />Blogs offer more depth of content than Twitter; no 140-character limit<br />Blogs are most time-consuming social media tool<br />Despite popularity, Facebook not widely used for IR<br />
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  31. 31. Leveraging online videoDell includes video of CFO discussing earnings results each quarter on its IR blog and on YouTube<br />
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  34. 34. Step four: leverage your work with sharing sites<br />
  35. 35. Sharing sites expand reach of existing IR information<br />Use social sharing sites to leverage existing disclosure items and expand your audience<br />
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  37. 37. Social media best practices for investor relations<br />Only disclose material information on social media that has already been disclosed through traditional channels.<br />Use Twitter and other social media to announce news releases, IR conference appearances, etc.<br />Monitor social media to watch for rumors, false information that could impact stock prices.<br />Leverage existing IR work with sharing sites.<br />34<br />
  38. 38. Social media action steps for bank IROs<br />Begin systematic monitoring now<br />Create a social media policy for employees<br />Open personal Twitter, Facebook accounts and get familiar with how they work<br />Start reading blogs<br />
  39. 39. Social media action steps for bank IROs<br />Add sharing features to your IR Web site<br />Leverage existing presentations, videos<br />Start with Twitter for IR purposes<br />Consider a blog and/or Facebook only if sufficiently staffed and have tech savvy<br />
  40. 40. For more information<br /><ul><li>Dave Hogandhogan@ffin.com325-660-5249Twitter: @dahoganLinkedin: http://www.linkedin.com/in/dahogan76</li></li></ul><li>Resources<br />Q4 blog: http://www.q4blog.com/<br />IR Web Report: http://www.irwebreport.com/<br />NIRI social media resources: http://www.niri.org/findinfo/Social-Media.aspx<br />Mashable: http://mashable.com/<br />Brian Solis blog: http://www.briansolis.com/<br />IR Café blog: http://ircafe.com/IR Musings blog: http://investorrelationsmusings.blogspot.com/<br />

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