Social Media Industry Challenges
Social media demographics are extremely attractive to companies, offering a tremendous opportunity to reach more consumers than ever before. It is now an effective and exciting medium to build stronger relationships and affinity with their brands, to ultimately grow and accelerate market share and profitability. Social Media is an emerging market that will continue to grow.
Many organizations have not been able to leverage Social Media tools such as Facebook, Twitter, LinkedIn and Google+ due to the lack of tools required to stay compliant with new and emerging regulatory compliance, security requirements and corporate policy mandates:. In exploiting Social Media, financial services organisations face a number of challenges:
Corporate risk from inaccurate or inappropriate communications with consumers via social media tools.
Social networking does not have a means to control the capture, logging, tracking or proving what was said or done.
In the absence of controlled social media archiving tools, social media business records can be lost, leading to e-discovery, legal hold, evidence spoliation and other issues.
By taking up the opportunity of gaining customers through social media channels, compliance to SEC, FSA and FINRA regulations need to be met.
Social Media Advertising:
Social networking activity (status updates, Tweets etc.) fall under the guidelines of an advertisement and/or sales literature.
Sending an email using the social networks (Facebook Messages, LinkedIn InMail) or an instant message (Facebook Chat) is considered correspondence.
Recommendations / Testimonials:
'Favoriting' a post on Twitter or 'Liking' a comment on Facebook and @Recommending” on linkedIn can also be seen as an endorsement by the firm.
Republishing a comment from a third party, such as 'retweeting', is likely to be considered an endorsement by the firm.
Social Media Business Records:
Social network content is electronic communication and should be captured, indexed and preserved.
Archived social networking content should be readily accessible.
Content should be easily searchable by specific fields and efficiently exportable.
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