If you work in the financial services industry, chances are you’re busy. So, we have compiled a list of helpful links for using social media in the financial service industry. Skip to the bottom for the full list of resources.
Last year, a McKinsey study declared that there is $1.3 trillion in untapped value to be gained by businesses- if they are effectively using social media and technologies. Businesses using social media will be able to better communicate and collaborate with their customers, as well as inside their own organization.
Yet, the report showed that only three per cent of enterprises are currently using social on a full-scale. It is becoming more clear than ever that if brands want to be a part of these huge opportunities, they need to be more aggressive in incorporating social media into their organizations.
Creating a Social Strategy
Once organizations understand that being social is not just for marketing and PR, it is time to work on a social media strategy. When creating a social strategy, financial services organizations face a few unique challenges. Major issues like security and compliance must be carefully considered before bringing social media into their daily operations.
Recent guidance from multiple agencies has eliminated regulatory uncertainty and paved the way for FSI organizations to scale up their social media activities in a managed, compliant fashion. The U.S. Securities and Exchange Commission announced that American companies can post important business information onto social networks like Facebook and Twitter, as long as investors are made aware of which sites they’re going to be posting to.
For most financial institutions, the crucial next step is to form a comprehensive strategy that lays out how social media will deliver on business objectives. This involves taking control of your FSI firm’s social assets by safeguarding and centralizing ownership over social channels; communicating with customers, partners and investors through social media while staying compliant with regulations for fair disclosure, records retention, customer privacy and more; and educating your employees from the C-suite down about social media use through a certified training program.
The potential for improving your bottom line through your social media efforts is growing rapidly. The power of social is so easily accessible to FSI organizations, however, to harness that power is more troubling.
Security is Key
When it comes to security, we have all heard the horror stories. It may be a hostile Twitter takeover, like that of Jeep and Burger King; or the PR catastrophe of a disgruntled employee going rogue on a social channel. These incidents may be interesting for the public to read about, but for businesses, they can have serious financial- and even legal- consequences.
However, forward thinking companies have a secret – although social media may be the cause to problems, it could also be your number one ally in a time of crisis. One such company is Tangerine. The banking brand recently averted a potential PR crisis by harnessing the full potential of social media. How? On the afternoon of April 2, 2013, the company’s social media team received a Tweet from a Twitter user alerting them that somebody was sending out text messages in a phishing scam targeting Tangerine customers. The fake text shouted urgently, guiding recipients to call a provided phone number to “remove restrictions” placed on their credit cards—by disclosing highly confidential banking and personal information.
Tangerine’s social media team and other departments worked together quickly. Internally, the news travelled through the company at lightening speed. The first public service announcement to warn clients was sent out from Tangerine’s social service Twitter account a few minutes after the initial alert, and within the hour a similar mass tweet was sent to all of its major social media channels.
“If we didn’t have social media, we would not have been able to respond with the speed that we did or alert as broad of an audience as quickly as we did,” explains Jaime Stein, Tangerine’s Senior Manager, Social Media.