Redondo Beach, CA – Banker, blogger and social media author, Jesse Torres, today warned banks about using Twitter as a tool for customer communication without fully understanding the risks and developing a formal strategy.
“Banks across the country are jumping onto Twitter in growing numbers,” said Mr. Jesse Torres. “Unfortunately, many times those responsible for testing the Twitter waters and managing the Twitter accounts are not aware of the many regulatory requirements that accompany any social media marketing plan, including Twitter.”
Mr. Torres stated that banks conduct five basic customer support activities: (1) answering questions regarding products and services, (2) establishing products and services, (3) addressing complaints regarding products and services, (4) informing customers of new products and services, and (5) notifying customers of changes to products and services. Without a carefully thought out plan and formal written social media policy, banks place themselves at risk from a regulatory and reputational risk perspective.
“It is far too easy to set up on Twitter. Without the proper planning, banks will find themselves on the defensive during the next regulatory examination,” said Mr. Torres. “Preparation is not difficult or different from any other new product roll out. It requires at a minimum a basic risk assessment, a policy to provide guidance and procedures to ensure consistency. Banks do this regularly with other products and services yet I am finding through inquiry that many banks with Twitter or other social media accounts have not covered the basics.”
Mr. Torres addresses the basic considerations in a blog posting found at http:// bit.ly/1JuxP8. The blog, Social Media and Banking, addresses issues, concerns and solutions for bankers relative to the implementation and maintenance of social media tools such as Twitter. Further, in an effort to assist bankers in implementing an effective social media strategy, Mr. Torres wrote and released a 70-page Community Banker’s Guide to Social Network Marketing. The Guide, which is free to download, is a social media and social network primer for bankers.
According to Mr. Torres, “banks tend to avoid being on the bleeding edge of technological implementations. Now that social media has experienced significant growth, is starting to season and is being effectively used against organizations, it is time for bankers to evaluate how to best utilize social media within their organization as both a tool for customer relations and risk management.” The Community Banker’s Guide to Social Network Marketing is available as a free download at http://www.tinyurl.com/cbgsnm.
Jesse Torres is a banker and the author of The Community Banker’s Guide to Social Network Marketing (www.tinyurl.com/cbgsnm) and of the upcoming Social Network Marketing: Unlocking the Value of the Community. Jesse can be reached by e-mail at [email protected]. He can also be found on LinkedIn at www.linkedin.com/in/jessetorres and on Twitter at www.twitter.com/jstorres. His blog, Social Media and Banking, can be found at http://socialmediabanking.blogspot.com.
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