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What You Don’t Know About Social Media Can Hurt You

  
  
  
  
  

Jackie Marshall Author: Jackie Marshall, JaMarshall@jackhenry.com

Many community bankers get the “chills” when the term social media is brought up in conversation.  But why does one of the most exciting communication tools ever created conjure up such emotions of fear and trepidation?  It’s for the same reason that people fear a lot of things -- it is fear of the unknown, plain and simple.  And, to make matters worse, financial institutions (FIs) are inundated with these types of intimidating media messages today: “Jump on the social media bandwagon or miss out!”, or, “If you don’t have a Facebook page, just close the door.”  These kinds of messages can be almost as scary as the FDIC alerts some of us receive on Friday afternoons announcing the next wave of bank acquisitions and closings.

Social Media

Over the last several months, I have been immersed in the subject of social media, speaking with bankers at recent JHA and ProfitStars user group meetings, hosting my own social media compliance webinar events, writing articles on the subject, and working one-on-one with FIs to customize social media strategies.   During this time, I have come to the realization that it’s not fear related to fraud that is causing the anxiety, nor is it the risk of what employees are stating in their personal Facebook posts, nor the fact that FIs don’t have the personnel to manage this new communication channel.  What has become clear is that many senior managers at FIs are not social media users themselves; in fact, many typically don’t even have a personal Facebook page.  It can be difficult to relate to social media unless you are a user yourself and can personally appreciate the value of social media communication.  Every FI needs a Social Media Champion, someone who is excited about and interested in social media opportunities and will look for ways to keep the FI’s brand and messaging fresh and dynamic.  But, even if you have such an individual on board, the channel won’t move downstream unless key stakeholders in the FI (yourself included) are regular users.  In a nutshell, if you don’t visit your FI’s Facebook page, your customers probably won’t either.  

So, what’s the magic formula for capitalizing on this dynamic new communication channel?  Take the time to learn about and embrace this new, unique and dynamic form of communication.  The amount of time you personally spend exploring and experiencing social media may directly correlate to the benefit that your FI derives from it.

 

Comments

Jackie - Interesting topic, but do you have a compliance perspective on this? I.e. how can the "social media champion" help overcome the traditional risk management process of 1. Assess risk, and then 2. Deploy technology? Isn't social media exceptionally difficult to risk assess using traditional methodologies?
Posted @ Monday, May 23, 2011 1:48 PM by Tom
Good question. Social Media is more than just a new technology it’s a technology based service. A multi-faceted approach is required to address strategic, operational, legal and reputational risks/vulnerabilities and because social media is continuing to evolve, identified risks and associated security controls will need to be updated and refined regularly. Social Media also carries a certain amount of residual risk. Weighing the benefits while acknowledging risks is a key strategy for the Social Media Champion and requires senior management and board of directors acceptance. The bigger issue I believe is that many FIs need more education and familiarity with appropriate risk assessment methodologies and with this experience will reap future benefits by making more informed business/technology decisions based on risk.
Posted @ Tuesday, June 07, 2011 11:10 AM by Strategically Speaking
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