Ce diaporama a bien été signalé.
Le téléchargement de votre SlideShare est en cours. ×

Financial Institutions and Social Media

Financial Institutions and Social Media

Télécharger pour lire hors ligne

This POV is here to provide guidance on how financial and investment management institutions can use social media to drive business relationships in compliance with strict government regulations.

This POV is here to provide guidance on how financial and investment management institutions can use social media to drive business relationships in compliance with strict government regulations.

Plus De Contenu Connexe

Similaire à Financial Institutions and Social Media

Plus par Ogilvy Consulting

Livres associés

Gratuit avec un essai de 30 jours de Scribd

Tout voir

Livres audio associés

Gratuit avec un essai de 30 jours de Scribd

Tout voir

Financial Institutions and Social Media

  1. 1. Financial Institutions and Social Media Melanie Taylor Vice President October 2012
  2. 2. 2 HOW FINANCIAL INSTITUTIONS CAN USE SOCIAL MEDIA OCTOBER 2012 Table of Contents The Purpose of this POV 3 What are the FINRA regulations and what do they mean? 4 Third-Party Moderation Partners 6 How are financial institutions currently using social media? 8 Recommendations for activating social networks for financial institutions 12 Resources 13 About Social@Ogilvy 14
  3. 3. 3 HOW FINANCIAL INSTITUTIONS CAN USE SOCIAL MEDIA OCTOBER 2012 The Purpose of this POV T his POV is here to provide guidance rules and regulations from state regulators, on how financial and investment the SEC and FINRA. These rules require all management institutions can use activity related to the business to be recorded social media to drive business relationships and archived, and requires the firm to create in compliance with strict government defined policies and procedures. regulations. There are several software companies that Summary have developed archival and compliance solutions for financial institutions. We evaluate Like other industries, financial firms have some leading providers here, as well as some been eager to leverage the popularity of social guidance on choosing a provider. Many banks media to service their business. However, to and investment management firms have ensure that investors are protected from false already created a social media presence with or misleading claims and representations, and different objectives and employee roll-out firms are able to effectively and appropriately plans. We can learn from their experience supervise their associated persons’ and help firms create the best plan for their participation in social media sites, the financial organization. industry is subject to strict communications
  4. 4. 4 HOW FINANCIAL INSTITUTIONS CAN USE SOCIAL MEDIA OCTOBER 2012 What are the FINRA regulations and what do they mean? B ased on FINRA guidelines from 2010 and 2011, recent rulings by the SEC and a state regulator’s deficiency letter obtained by Thomson Reuters in May 2012, we have compiled the following summary of what the rules mean for a financial services firm that wants to participate in social media. Although these mostly apply to investment firms and brokerages, retail banks that sell securities also must comply with these rules. 1 Record-keeping. Every firm 2 Suitability (recommendations that intends to communicate, or to customers) responsibilities. permit its associated persons NASD Rule 2310 states that the to communicate, through social person receiving an investment media sites must first ensure recommendation must be that it can retain records suitable for it. That means that of those communications. an untargeted social media post Firms cannot delete, and or communication that goes must archive, all social media to a large group (like LinkedIn activities. There is software connections), must be suitable available to help with that, for all of them. An important discussed within. factor in this regard is whether a particular communication from a broker-dealer to a customer reasonably would be viewed as a “call to action.” For example, some states have ruled that “Liking” a brand on Facebook can be seen as a recommendation.
  5. 5. 5 HOW FINANCIAL INSTITUTIONS CAN USE SOCIAL MEDIA OCTOBER 2012 3 Pre-approval of Content. 4 Supervision of social 5 Third-party posts. Social All static content (such as media sites. Firms are media posts from third Facebook and LinkedIn required to supervise parties are not considered profiles) requires interactive communication communications from a documented pre-approval on social media sites firm unless the firm has before posting. A static and adopt policies to endorsed or is involved posting is deemed an stay in compliance with in the preparation of the “advertisement” under FINRA guidelines. For content. This means that NASD Rule 2210 and example, firms may adopt firms are not responsible therefore requires a procedures that require for what others say or registered principal to principal review of some claim about their products approve the posting prior or all interactive electronic and services, unless they to use. Interactive content communications prior to actively involve themselves (the stream of updates use, or may adopt various with the third-party to Twitter, LinkedIn, methods of post-use content. Under certain Facebook wall content and review, including sampling circumstances, however, other networks) doesn’t and lexicon-based search third-party posts may need vetting, but must be methodologies. become attributable to the supervised — sampled firm. Whether third-party regularly after posting, content is attributable to a for compliance violations. firm depends on whether These rules apply to all the firm has (1) involved content of a business itself in the preparation of nature, whether from an the content or (2) explicitly official company account or implicitly endorsed or or an employee’s own approved the content. personal account.
  6. 6. 6 HOW FINANCIAL INSTITUTIONS CAN USE SOCIAL MEDIA OCTOBER 2012 Third-Party Moderation Partners I n order to maintain compliance with all 1 What types of archiving and compliance of these rules and regulations (archives, software is your organization already using moderation, approved posts), savvy financial for online communications? services firms are partnering with one of several Web-based software providers to 2 How many employees need access to the help automate these required processes. software? Some vendors support the archiving process, others focus on compliance, and a few do both 3 What platforms do you need to archive? (most of these platforms work through proxy redirect, so will only work when employees 4 Do you also need content library access these sites from the office – though capabilities? some are expanding to include coverage from mobile devices, as well.) Choosing a provider Following is a summary of some top providers. should be based on several things: Compliance and Archiving Compliance and Archiving Works exclusively with financial Archiving Only companies, which ensures tight compliance with all new rulings. They also archive all social media activity and provide a pre- and post-approval Offers a full service solution for financial support system. There is an additional firms that need archiving, monitoring, social media relationship offering that maintaining and surveillance of the tracks engagement metrics. activities on social media. Arkovi’s compliance tools also enable the capture, policy enforcement and pre- review of LI, TW, and FB with automatic export to our email archiving partners, for archiving, supervision, eDiscovery and audits.
  7. 7. 7 HOW FINANCIAL INSTITUTIONS CAN USE SOCIAL MEDIA OCTOBER 2012 Compliance only Compliance and Archiving Compliance and Archiving A compliance and analytics Captures and maintains posts Archiving Only service provider. The analytics for the five key platforms. module allows a user to do Clients can also opt for a deep dive into all social content libraries, and get platforms, to determine support from any device or Smarsh provides compliance overall reach and strength of interface. They can capture and archiving tools similar individual posts. Can set up advisor updates for post- to other platforms. The pre-approved content, and approval. Hearsay can either difference for them is there is a lexicon library for retain the data it captures security. They own and original posts. Rather than or push it out to a client’s maintain all their own servers archive data, they push the system. Uniquely allows that archive a company’s records to a firm’s content clients to choose features a la data. They also support posts management platform. Plus, carte. for Salesforce Chatter, Jive they have an Android mobile and Yammer, in addition to application. Facebook, Linkedin, and Twitter.
  8. 8. 8 HOW FINANCIAL INSTITUTIONS CAN USE SOCIAL MEDIA OCTOBER 2012 How are financial institutions currently using social media? M any financial services firms have moderated and archived by financial firms, tested social media activations within and posts must be pre-approved, often in the the FINRA guidelines, with some form of a content library for employees to success. There have been two approaches choose from, some firms are able to attribute that firms have embraced: (1) brand-led and some business success from social media (2) employee-led. And many firms are testing engagement. the waters of both. Because brokers/advisors are the sales generators and often the face Morgan Stanley Smith Barney has been slowly of a firm, activating their networks can be rolling out access to Twitter and LinkedIn, more beneficial than a corporate-voiced using the Socialware platform to provide pre- social platform. However, having multiple approved posts. Many pre-approved posts touch points opens up exposure to risk and include links to original content found on the compliance issues, and therefore, may not corporate website, or public content from be the best way of beginning a social media other financial news provider sites. All brokers program for a firm. Although all profiles on use the letters MSSB in their Twitter handle, Facebook, LinkedIn and Twitter are required branded wallpaper to be and link to their profile pages on the Morgan Stanley website. They use previously approved language on their LinkedIn pages after a personal summary.
  9. 9. 9 HOW FINANCIAL INSTITUTIONS CAN USE SOCIAL MEDIA OCTOBER 2012 Have you gained new clients through engagement on LinkedIn? Corresponding gain in assets under management from new clients Less than $500K 42% NO 38% $500 to $999 YES 62% 20% $1M to $4.9M 20% More than $5M 32% 12% Source: LinkedIn, 2012 The consensus so far in Morgan Stanley is that Like Morgan Stanley, Goldman Sachs has Twitter is helping brokers stay connected to steered clear of Facebook activity on behalf of their clients with newsworthy and informative the brand. This is likely due to the challenge updates, but they are having more business of managing negative comments posted to the luck with LinkedIn ,where one agent reported wall. Goldman Sachs has instead branched out bringing in over $10MM worth of business, to use YouTube to reach their target audience due to connections leading to conversations. on a social platform. However, they do not This is supported with research done by allow comments on their videos, therefore LinkedIn, showing more than 60% of financial eliminating the social engagement. The videos consultants were using the platform to find do remain shareable. Goldman Sachs also new prospects. uses Twitter (they launched in May 2012) and a company page on LinkedIn. Their social media goals are more about building thought leadership and brand visibility (based on their Social Media Manager job posting).
  10. 10. 10 HOW FINANCIAL INSTITUTIONS CAN USE SOCIAL MEDIA OCTOBER 2012 One investment brokerage that maintains an Several banks, like Deutsche Bank and Wells active presence on Facebook is Vanguard, Fargo, also engage with social media. Wells which was the first brand to lead the way Fargo has allowed some mortgage bankers in social media in 2010, just as the SEC and to have Facebook pages to communicate with FINRA released their guidelines. However, homeowners. Other banks, like Deutshe Bank, their Facebook page does have some negative have identified leaders to be the voice of the comments on the small section of the brand in social media. All of these selected Timeline designated for external wall posts. people are using pre-approved posts, and A Vanguard representative usually responds following strict social media policies per the with a comment to help solve the problems FINRA guidelines. regarding issues with funds or process, but specific investment complaints are left without a response.
  11. 11. 11 HOW FINANCIAL INSTITUTIONS CAN USE SOCIAL MEDIA OCTOBER 2012 Social@Ogilvy has worked with Citizen’s Another option to engage socially without Bank to create those pre-approved posts using social platforms like Twitter or LinkedIn that the compliance team approves. We used is to create an Influencer Network to help a risk response matrix to identify strategic extend the reach of a message online, or to opportunities for the brand to join the provide feedback to the financial institution. conversation, and defined the best ways to do Social@Ogilvy helped TDAmeritrade do just that. that when they were launching their Investools products. Using our Influencer Relationship Management process, we created a network of online influencers that actively blogged about the financial industry, to help TDAmeritrade create their online tools offering.
  12. 12. 12 HOW FINANCIAL INSTITUTIONS CAN USE SOCIAL MEDIA OCTOBER 2012 Recommendations for activating social networks for financial institutions W e believe that there is a huge 3 Develop a social media strategy with opportunity for financial services defined and measurable goals to to use social media to help grow demonstrate the impact on the business; their businesses through a strategic use of it’s not just about launching a Twitter page. engagement tactics, while remaining within all government regulations. The following are 4 Create a pre-approved content library to key steps to creating a social presence for your activate in social channels (if applicable). brand: Then, develop a process to keep it relevant with timely updates. 1 Develop detailed enterprise-wide social media policies and guidelines. Then, 5 Support the program with a detailed develop a training program to ensure that moderation plan to ensure compliance for all employees are aware of the policies in all employees across all platforms. place and the reasons why. Want to get started immediately? Contact your 2 Choose an archiving partner to meet Ogilvy partner representative for additional FINRA and SEC retention guidelines for details, project management schedules and eDiscovery. Social@Ogilvy can help you executing a scope of work. choose the best one for your social media plans and your organization size.
  13. 13. 13 HOW FINANCIAL INSTITUTIONS CAN USE SOCIAL MEDIA OCTOBER 2012 Resources www.socialturns.com Dealbook/New York Times Online, On Wall St., Keeping a Tight Rein on Twitter, W. Alden, Mar Harvard Business Review: Online, Social Media 21, 2012 Compliance Isn’t Fun, But It’s Necessary http://dealbook.nytimes.com/2012/03/21/on- R. Holmes, Aug 23, 2012 http://blogs.hbr.org/ wall-st-keeping-a-tight-rein-on-twitter/ cs/2012/08/social_media_compliance_isnt. html FTI Consulting, http://www.fticonsulting. com/global2/media/collateral/united-states/ BankTech.com, Creating a FINRA-Friendly financial-advisors-use-of-social-media- Social Media Plan, S. Opplinger, Mar moves-from-early-adoption-to-mainstream. 27, 2012 http://www.banktech.com/ pdf channels/creating-a-finra-friendly-social- media-p/232700252 Fourth Source: Why the financial sector has turned its back on social media marketing, A. http://finra.org Cooper, Aug 2, 2012 http://www.finra.org/Industry/Regulation/ http://www.fourthsource.com/social-media/ Notices/2010/P120760 why-financial-sector-turned-back-social- http://www.finra.org/web/groups/ media-marketing-10018 industry/@ip/@reg/@notice/documents/ notices/p120779.pdf WealthManagement.com, Got the Social http://www.finra.org/web/groups/ Media Spins? Help Is On The Way, L. Barack, industry/@ip/@reg/@notice/documents/ Feb 2, 2012 http://wealthmanagement.com/ notices/p124186.pdf resources-amp-community/got-social- media-spins-help-way Thomson Reuters Online: State regulator’s deficiency letter offers clues for social- http://www.securitiesarbitrationlawblog. media policies, J. Wallace, May 29, 2012 com/?p=60 http://newsandinsight.thomsonreuters. com/Securities/Insight/2012/05_-_May/ State_regulator_s_deficiency_letter_offers_ clues_for_social-media_policies/
  14. 14. About Social@Ogilvy S ocial@Ogilvy is the largest social media marketing communications network in the world. Named 2011 Global Digital/Social Consultancy of the Year by The Holmes Report, the practice leverages social media expertise across all Ogilvy Mather disciplines, offering an extensive list of services within the foundational business solutions – Listening and Analytics; Social Business Solutions; Social Media Marketing and Communications; Social Shopping; Social CRM; Social Care; and Conversation Impact. For more information, visit social.ogilvy.com and connect with us at www.facebook.com/socialogilvy, www.twitter.com/ socialogilvy, www.slideshare.com/socialogilvy. Contact: melanie.taylor@ogilvy.com and john.bell@ogilvy.com

×