In many ways, Peach State FCU symbolizes the essence of the credit union industry: Created in 1961 with a specific goal of serving local educators in a few Georgia counties, it now has more than 41,000 members, while employees of all sponsor Boards of Education and select groups and associations are also eligible to join.
Like all good businesses, Peach State likes to stay current, and that’s why, earlier this fall, it launched social media initiatives through promoted posts on Twitter and Facebook. It was working—the institution says it had soon doubled the number of followers. In November, however, Twitter instituted new rules that “restrict the promotion of financial services and related content.”
For the record, this is not an absolute ban. Financial services providers can indeed use promoted posts, but there’s an approval process that must be followed, and some products, such as short-term mortgages, still can’t be publicized.
If Peach State represents one end of the financial services spectrum—a small, focused institution serving a very specific purpose—then JP Morgan Chase surely represents the other. So what can the two have in common?
On December 6, the Wall Street behemoth sent out an innocuous Tweet from its corporate account promoting an upcoming Twitter Q&A about leadership and careers and featuring the hashtag #AskJPM. It was totally innocuous and uncontroversial. . .except for the fact that just a few minutes earlier, Twitter had gone public with underwriting help from Chase. That first Tweet didn’t get much attention, but a second one a week later certainly did. The #AskJPM hashtag soon became a minefield of nasty messages, most flailing the company for its supposed lack of ethics.
While Chase has had its share of PR nightmares in the recent past, from bribery scandals to the Bernie Madoff fiasco, it surely wasn’t expecting this one. The company hastily scrambled to fix the damage, dropping the Q&A as a bad idea and promising to “back to the drawing board.”
Of course, it’s way too late for that. ‘Social business’ isn’t just coming, it’s been here for a while. The lines between personal and corporate communications, previously blurred by a plethora of mobile apps, have been essentially obliterated by the ubiquity of social media. And the problem isn’t that the rules have changed, it’s that they keep changing on a regular basis.
Just this month, the Federal Financial Institutions Examination Council (FFIEC) released its long-awaited guidelines for this process. Officially intended for financial marketers, “Social Media: Consumer Compliance Risk Management Guidance” actually deserves a broader audience in that it provides a clear overview of this rapidly evolving field, covering both the promise and the potential pitfalls. It doesn’t outline new laws per se, but plays an invaluable role in examining common practices and helping to negotiate current regulations.
Case in point: Twitter itself, which experienced a major snafu in this same timeframe. In mid-December, the company sparked howls of protest when it instituted a rule that enabled blocked Twitter users to anonymously view or Tweet the very users who blocked them. It was done with the best of intentions—Twitter wanted to protect those who sought to filter out abusive messages but feared retaliation—but the change had the opposite effect, and the company almost immediately had to reverse course.It’s important to remember that even a document like this, comprehensive as it is, offers little more than a snapshot in time. Regulations in the traditional sense, like Sarbanes-Oxley and Dodd-Frank, take years to create and implement. Rules around Twitter and LinkedIn, meanwhile, can turn on a dime, evolving as fast as the technologies that enable them.
The simple truth is that new technologies will keep emerging, and the rules will keep changing. In the long run, this is a good thing—each advance fosters better communication and greater competition. But in the meantime, it’s imperative that we monitor new tools as they emerge, stay abreast of changes in user behavior and expectations, and adapt our own practices to stay both current and compliant. It’s a tall order to be sure, but vital nonetheless.
*Image courtesy of samuiblue – FreeDigitalPhotos.net