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Social Media and Financial Services: The Good, The Bad And The Ugly


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Todd takes you through the changing landscape of social media for the financial services profession. Long eschewed by most industry communicators, the financial services sector is coming around and finding ways to embrace social media in mostly appropriate, occasionally inappropriate ways. Todd takes you through both the success stories and cautionary tales, wrapping up with a framework for success in social media.

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Social Media and Financial Services: The Good, The Bad And The Ugly

  1. 1. Social Media & Financial Services The Good The Bad The Ugly
  2. 2. Social Media & Financial Services @vanhoosear T H E G O O D , T H E B A D & T H E U G LY
  3. 3. 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. *
  4. 4. * 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 *
  5. 5. * Red Asterisk #2 • I’m just a PR guy • My wife manages our finances • This isn’t legal advice • etc.
  6. 6. Question 2: Should I Be Social?
  7. 7. Question 2: Should I Be Social?
  8. 8. Question 2: Should I Be Social?
  9. 9. 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
  10. 10. Question 3: Can I Be Social?
  11. 11. Question 4: How Can I Be Social? •Safely •Confidently •Effectively •Efficiently
  12. 12. Or In Other Words…
  13. 13. 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
  14. 14. Some Lessons
  15. 15. Real Time Marketing Reality WHAT IT SEEMS LIKE WHAT IT ACTUALLY IS
  16. 16. * Red Asterisk #3 • Real time marketing, you say? • Fat chance! • Not while the lawyers still live!
  17. 17. 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 - March, 2014 Report on “Integrating Social Media Engagement to Drive Business Results”
  18. 18. 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 - March, 2014 Report on “Integrating Social Media Engagement to Drive Business Results”
  19. 19. 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
  20. 20.
  21. 21. • 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
  22. 22. So what did they do wrong?
  23. 23. 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
  24. 24. 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 – NLRA
  25. 25. 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… *
  26. 26. * Red Asterisk #3 • Careful with that “Like” button – could it be considered a testimonial? • Careful with your recordkeeping – could your social media usage fall under the Advisers Act? • Regularly update your social media policies and procedures in light of new tech and new regulations
  27. 27. Minimizing Compliance Risks • A good social media policy isn’t enough! • Get your legal team on board early to scope out content areas that 1. Don’t need review 2. Will require managerial review 3. Will require legal review 4. Cannot be addressed via social channels • Build a library before beginning • Have a decision tree / response protocol in place before beginning
  28. 28. 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 not crossing the NLRB)
  29. 29. 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
  30. 30. 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
  31. 31. Thanks • John Refford • Mike Langford • Mike Spataro • Risa McMahon • Adam Zand • Tinu Abayomi-Paul
  32. 32. THANK YOU! @vanhoosear
  33. 33. To Claim your CE for the meeting: Text 465859 {space} and ASPPA ID# to 22333 22333 465859 123456 Your Attendee ID is located on the the BOTTOM LEFT of your conference badge. JOHN John Smith XYZ Company Washington, DC 123456