Navigating Social Media Compliance: A Comprehensive Approach for Financial Institutions

Since the publication of the Federal Financial Institutions Examination Council (FFIEC) guidance, banks and credit unions are now facing the crucial step of conducting a Social Media audit. This article explores the various components outlined in the Social Media: Consumer Compliance Risk Management Guidance and delves into the considerations necessary for ensuring a socially compliant program.

Understanding the Governance Structure:

The foundation of a successful social media program lies in establishing a robust governance structure. Identifying key roles such as the Social Media Manager, content creators, and responders to user interactions is crucial. Clearly defining responsibilities and determining the decision-making process for content approval are essential aspects of this governance structure.

Linking Social Media to Strategic Goals:

Aligning the use of social media with the strategic goals of the financial institution is imperative. Whether it's increasing brand awareness, boosting sales through product advertisements, or researching new customer bases, understanding the contribution of social media to overarching objectives is key.

Developing Policies and Procedures:

Creating and implementing policies and procedures is the next step. Employees must comprehend and agree to acceptable use policies, while those managing platforms need clear procedures for posting and monitoring content. Addressing online posting risks through established methodologies is equally important in maintaining compliance.

Employee Training Program:

An effective training program should incorporate all social media-related policies. Given the rapid evolution of social platforms, staying vigilant for updates and including social media training in the annual curriculum is essential.

Oversight Process for Monitoring:

Establishing an oversight process to monitor proprietary social media platforms is critical for managing compliance, legal, and reputation risks. Although challenging, addressing real-time posting and ensuring that information aligns with established parameters is necessary.

Addressing Risk in a Live Social Environment:

Adopting measures to address risk in a live social environment involves bouncing every post against established parameters to ensure compliance. Establishing procedures for remediating non-compliant posts made by others is also crucial.

Archiving Posts:

Archiving posts is a vital component of demonstrating compliance. This documentation provides proof of compliant postings and remediation efforts, ensuring that social platforms operate following regulations.

Reporting Effectiveness:

Reporting on the effectiveness of the social media program involves presenting archived posts and remediation efforts. This information is crucial for an inevitable social media audit, providing insights into the program's achievements and adherence to the governance structure.

Conclusion:

Whether entering the social media scene or fortifying an existing presence, a comprehensive approach to social media compliance is essential. By understanding and implementing the components above, financial institutions can navigate the complexities of social media regulations effectively. If you are looking for an affordable comprehensive, turnkey Social Media Compliance solution, we can help with that too! BANK MONITOR addresses and fulfills all of the regulatory requirements we’ve discussed here, and maintains your program using technology to allow you to have a healthy and compliant “social” bank.

Contact Jill D. Williams for a complimentary call to determine the next steps to being totally compliant. Request your FREE CONSULTATION.