Social media is bigger and more important than ever, but for many financial institutions, it’s never been harder to keep up. In this post, we’ll provide you with tips on how to better manage your social media presence, whether you’re one person with a million other things to do or a full-time marketer at a financial institution.
The latest in our Strategies for Success series focuses on social media strategies and rules, and what they mean for financial institutions.
(To learn more about building a better bank budget and how to ensure successful relationships with third-party vendors, check out our other Strategies for Success posts from the past month.)
To learn more about how Ncontracts can help you understand your Fair Lending, HMDA, CRA & Redlining compliance risk, sign up for a free, no-obligation demo.
Read on to learn 5 social media strategies to equip you for success in 2019!
Three out of four banks believe that social media is important to their strategy, according to the American Bankers Association. If you fall into that category, here are five strategies for your social media success.When using social media for your financial institution, it's important to have a plan. Know what platforms you’re going to post to and how often, how you’re going to respond when you see online complaints, and how you’re going to communicate should a crisis arise. Spend some time thinking about your goals. Are you hoping to raise brand awareness? Attract new customers? Reach potential new employees? Your goals should guide your strategy.
For example, many financial institutions are venturing into social media in an effort to attract millennial customers. Others are using social media to strengthen relationships with existing customers. Depending on your goals, your platforms, language, and calls-to-action will each be different.
Think about who your customers are and how they consume media. Google recently announced it was shutting down its social media platform, Google Plus. Many companies raced to join the network when it first launched, only to realize later that the users never showed up.
Instead of being on as many platforms as you can, simply to be on them, focus on the platforms that make sense, and on using them the right way.
Any promotion of an FDIC-insured product needs to have the "Member FDIC" logo, and needs to comply with all of the other advertising-related requirements. Likewise, you will need to include the "Equal Housing Lender" logos wherever applicable, too. The same goes for NCUA member credit unions and the inclusion of “Federally insured by the NCUA.”
This can be as simple as adding text to the copy of every post or tweet, or even including the FDIC or NCUA member logo in your profile photo, so that it appears with every post.
All social media communication must comply with applicable federal, state and local regulations, and the marketing- and advertising-specific rules outlined in them, from ECOA and FHA to TILA and UDAAP. Some financial institutions try to minimize or avoid this risk by not advertising at all on social media, instead focusing on things like community events and financial education. While this is one approach, other find that advertising on social media is a great way to meet consumers where they are. No matter your approach, make sure to understand and manage your risks.
Consider the potential risk of “digital redlining,” too. In August, Facebook was penalized for engaging in so-called "digital redlining." In the coverage of that story, it came to light that some financial institutions were using Facebook advertisements to market to or exclude from marketing specific individuals based on their demographics and location. In using any social media ads, be aware of potential risks involved.
As you analyze your data for Fair Lending, HMDA, CRA and Redlining risk, an understanding of your marketing and social media strategy can help deliver additional insights.
5. Be Aware Of What Users Are Saying About Your Institution
When it comes to negative comments or complaints, and oftentimes praise, many things posted on social media will not be directed to any specific page or account. They may mention a company without actually tagging, @mentioning, or replying to an original post, so a daily or weekly search for your institution’s name can be helpful.
Ncontracts Viewpoint: With a bit of planning and focus, you can manage your institution’s presence in the ever-changing social media world. Social media doesn’t have to be scary.
Compliance doesn't have to either. If you're looking for valuable, cost-effective, and budget-friendly compliance software, you're going to like what you find by partnering with Ncontracts..