FINRA and Compliance: Social Media and the Financial Sector

Financial institutions are using social media to create a competitive advantage and as a way to build their customer base. Let’s look at a few ways in which financial institutes are using the various social networks.

Facebook:
Banks and other financial institutions are using Facebook to listen and to serve their customer base, as well as to promote announcements and blog posts. 

Twitter:
Banks and finance institutes are using twitter to share, listen, ask, and respond to their customers especially in the customer service realm. Another great usages would be to demonstrate thought-leadership and know-how.

LinkedIn:
The Finance industry is the 2nd most active industry on LinkedIn. Typical usage cases involve networking, recruiting employees, spreading company culture, and to build relationships.

Foursquare:
Allowing check-ins to branch locations is the key area of use by banks. This allows the banks to give public shout-outs or rewards to power and returning customers. Some banks have even been using Foursquare to verify a client's location as a measure to prevent bank fraud.


Although social media can pay great dividends to banks, these financial institutions must tread lightly when integrating social media. A carefully crafted plan and strategy that adheres to FINRA and SEC standards and regulations is needed. All conversations and anything considered sales/marketing material must be recorded and archived in a manner that does not allow changes or edits. To understand how financial institutes can reap social media rewards and to understand how FINRA applies to using social media, I have put together a great presentation that discusses this below.

If you want to know more about these regulations, read through FINRA Regulatory Notice 10-06 which can be found in its entirety below.

FINRA Regulatory Notice 10-06 Guidance on Blogs and Social Networking

If you want to dive in deep, have a look at this comprehensive presentation by one of the best, @JoyceMSullivan or @SocMediaFin at Social Media Week.