Embed Size (px)
DESCRIPTION
As presented by Jared Licklider to the attendees of the IFCA Annual Conference Nashville, TN October 4, 2011.
Citation preview
The State of Social Media in Financial Services
Jared Licklider, Senior AnalystDALBAR, Inc.
2
October 2011
Overview
ØRegulations and policies regarding social mediaØAnalysis of social media use for financial
service firmsØExamples of social media use on
financial service websitesØConsiderations for using social media
now and in the future
3
October 2011
Why Social Media?
4
October 2011
Why Social Media?Ø Social media sites and blogs account for 23% of Americans’ time spent
onlineØ Women 18-34 years old are most active users or social networks and
blogsØ Americans 35-49 comprise 27% of the social media audience and are
4% more likely to visit a social network or blog than the average Web user
Ø Facebook had 140 million visitors during May 2011 and reached 70% of active U.S. Internet users
Ø 53% of active social networking users follow a brand!Ø 70% of active adult social networking users shop online, 12% more
than the average adult Internet user!
Nielsen – The Social Media Report Q3 2011
5
October 2011
Regulations
ØNASD Rule 2210Ø FINRA Regulatory Notice 10-06Ø FINRA Regulatory Notice 11-39Ø SEC Rule 17a-4
6
October 2011
NASD Rule 2210Ø An email or instant message sent to 25 or more prospective retail
customers is sales literature.Ø An email or instant message sent to a single prospective or current
customer, or an email or instant message sent to an unlimited number of current clients and/or less than 25 prospective retail customers across an entire firm within a 30-day period, is considered correspondence.
Ø Password-protected sites are sales literature.Ø Real-time interactive electronic forums and chat rooms, non-static,
interactive components of social networking and blog comments are considered public appearances.
Ø Publicly available websites, banner advertisements and bulletin boards are advertisements. The non-interactive components of social media websites, such as the firm background, history, profile, or wallinformation, are also considered advertisements.
7
October 2011
AdvertisementsØ Non-interactive areas of a social media profile: firm’s
history, background, and wall information
8
October 2011
Public AppearancesØ Real-time, non-static, interactive components of
social networking and blog comments
9
October 2011
FINRA Regulatory Notice 10-06Ø Suitability regulations discussed in NASD Rule 2310 apply to
recommendations supplied through social media.Ø No rule exists to limit which members of a firm are able to create a
social media account, however, training is required for those members who wish to use social media for business purposes. Additionally, firms should place restrictions on any member with a history of compliance problems who wishes to use social media for business purposes.
Ø Third party posts to a social media website are not treated as a firm’s communication with the public. However, issues arise when a firmendorses a third party post, is involved in the preparation of a third party post, or allows offensive or copyrighted content to be posted to their social media site/page.
10
October 2011
FINRA Regulatory Notice 11-39Ø Autobiographical information, such as place of employment and job
responsibilities, in certain contexts, could be a business communication.Ø Interactive content can become static if it is used that way and would
fall under new rules.Ø Since static content on social media sites is considered an
advertisement, then changes to that material must receive prior approval.
Ø No using social media sites or devices that automatically erases or deletes a communication.
Ø Recordkeeping responsibilities are not dependent on the device used to make the communication or whether the device was issued by the firm or is for personal use.
Ø Firms can allow the use of personal devices for business communications but must be able to retain, retrieve and supervise business communications no matter if the firm owns the device or not.
Ø Records of third party posts need to be kept.
11
October 2011
Internal Firm PoliciesØ Approving use of certain social media sites but not all.Ø Employees are allowed to list their company and occupation on
personal pages.Ø Employees are not allowed to post about their company on personal
pages.Ø Only certain individuals within a firm are allowed to post to company
social media websites.Ø Certain individuals, like financial representatives, are only allowed to
post pre-approved content.Ø Compliance department will routinely audit firm and employee social
media pages.Ø Requiring training for social media use.Ø Some firms use webinars or training sessions. Some firms also test
social media users and require a passing score.Ø Installation of recording/tracking software onto employee computers
that will be used for posting to and managing social media pages.
12
October 2011
ComplianceØ Incorporate Compliance early in the processØ Familiarize Compliance with the sites and explain how
you plan to use itØ Train advisors, employees, and representativesØ Monitor sites and postsØ Archive social media interactionsØ Involve Compliance but do not overburden them with
posts that may not need review
13
October 2011
Usage GuidelinesØ Do not post personal or account information or request transactions.Ø The firm is not responsible for the privacy and security of the social
media site or any third party sites linked to within posts or on the page.Ø The firm is not responsible for content for other social media pages or
third party sites linked to within posts or on the page.Ø The firm does not endorse posts or third party links or websites (or
advertisements usually found on the right hand side of the page onFacebook).
Ø Do not post obscene, explicit, and/or offensive comments.Ø Do not post recommendations for specific investing products.Ø The firm will not respond to comments (this is not applicable to every
company and some are responding to basic customer service requests and general posts from their followers/fans).
Ø The firm reserves the right to block users and delete posts they deem inappropriate.
14
October 2011
Social Media Background
ØThe Big 4:üFacebooküTwitterü LinkedInüYouTube
üOthers: Tumblr, Blogger, MySpace, Wordpress, social bookmarking sites
15
October 2011
Social Media Background
ØThe Big 4:üFacebook - personal site, less-frequent posts,
profile pages for different promotions
üTwitter – more frequent posts, pushing content, driving traffic back to public website
ü LinkedIn – connecting professionals, finding employees
üYouTube – video content
16
October 2011
Social Media Background
Ø Link individuals to official social media pages
17
October 2011
Social Media Background
Ø Legg Mason
18
October 2011
Social Media – How is it Used?
Ø Fielding very basic customer service and complaintsØ Sharing educational, company, human
interest and market related articlesØ Support company promotions, sponsorships
and eventsØConnecting with financial professionalsØBlogsØ Prospecting for new talent
19
October 2011
Customer Service
ØNestlé
20
October 2011
Customer Service
ØComplaintsØWebsite technical issuesØWidespread online/offline problemsØ Policy/account/contract specific transactions
or problems
ØKey detractors: authentication, written authorization for certain transactions, complex transactions, and possibility of personal information becoming public
21
October 2011
Customer Service
ØComplaints
22
October 2011
Customer Service
ØComplaints
23
October 2011
Customer Service
ØComplaints
24
October 2011
Customer Service
ØWebsite technical issues
25
October 2011
Customer Service
ØWebsite technical issues
26
October 2011
Customer Service
ØWebsite technical issues
27
October 2011
Customer Service
ØWidespread online/offline problems
28
October 2011
Customer Service
ØWidespread online/offline problems
29
October 2011
Customer Service
Ø Policy/account/contract specific transactions or problems
ØKey detractors: authentication, written authorization for certain transactions, complex transactions, and possibility of personal information becoming public
30
October 2011
Customer Service
Ø Provide contact options
31
October 2011
Customer Service
Ø Provide contact options
32
October 2011
Customer Service
ØDirect Messaging (DM)
33
October 2011
Customer Service
ØGeneral non-confidential account questions
34
October 2011
Customer Service
ØReps providing posts
35
October 2011
Customer Service
ØUSAA
36
October 2011
Sharing Content
ØBuild brand recognition
37
October 2011
Sharing Content
ØTypes of content:üHuman interestüEconomic commentaryüEducational articles/videos
38
October 2011
Sharing Content
ØMassMutual
39
October 2011
Sharing Content
ØMassMutual
40
October 2011
Sharing Content
ØMassMutual
41
October 2011
Sharing Content
Ø Share icons on site
42
October 2011
Sharing Content
Ø Share icons on site
43
October 2011
Sharing Content
Ø Share toolbar – AXA Equitable
44
October 2011
Sharing Content
Ø Pushing content
45
October 2011
Sharing Content
Ø E-delivery and cost basis
46
October 2011
Sharing Content
Ø Social media feeds
47
October 2011
Sharing Content
ØAdvice
48
October 2011
Support Company Initiatives
Ø Sponsorships and partnerships
49
October 2011
Support Company Initiatives
Ø ING Runner’s Nation
50
October 2011
Support Company Initiatives
Ø Social media specific initiatives
51
October 2011
Support Company Initiatives
ØMicrosites
52
October 2011
Connect with Financial Professionals
ØAdvisor-specific Twitter
53
October 2011
Connect with Financial Professionals
Ø Find an advisor
54
October 2011
Blogs
ØCommentary and articles
55
October 2011
Blogs
Ø Putnam
56
October 2011
Blogs
Ø Shutting off comments
57
October 2011
Prospecting for New Talent
ØActively searching
58
October 2011
Prospecting for New Talent
Ø Informing fans of opportunities
59
October 2011
Prospecting for New Talent
ØNorthwestern Mutual
60
October 2011
Prospecting for New Talent
ØCareer social media channels
61
October 2011
Considerations for the Future
ØUsing social media to sellØAdditional sites/enhancementsØ ProtocolØ Page Design
62
October 2011
Using Social Media to Sell
Ø Joining a conversation
63
October 2011
Using Social Media to Sell
Ø Listening to chatter
64
October 2011
Additional Sites and Enhancements
ØTumblr
65
October 2011
Additional Sites and Enhancements
ØGoogle+
66
October 2011
Protocol
Ø Professionalism
67
October 2011
Protocol
ØChecks and review
68
October 2011
Protocol
ØRepetition
69
October 2011
Protocol
ØOverkill
70
October 2011
Page Design
ØBackgrounds
71
October 2011
Page Design
ØBackgrounds
72
October 2011
Page Design
Ø Issues with Twitter
73
October 2011
Page Design
ØTheme pages
74
October 2011
Page Design
Ø Profile pictures
75
October 2011
Page Design
Ø Profile pictures
76
October 2011
Conclusion
Questions?
For more information please contact:Brooke Halloran
