Social Media in the Financial Markets

• According to the 2014 Social Media Benchmark Study by J.D. Power: • 36% of retail banking customers use social media

as a method of gathering information (on products, promotions, etc.)

• 21% of credit card customers use social media to gathering intelligence

Social Media in the Financial Markets

• Social Media Policy Established• FFIEC – guidelines

• Response Plan – additional processes• Goals• Strategy

A goal-driven approach:• Campaigns around products and services• Branding – positioning your company• Social media – ongoing schedules• Social media management

• We track 1,947 Credit Unions on Social Media (and 1,773 Banks)

• Median Asset Size of Credit Union on Facebook – 93.5 million

• There are 995 Credit Unions on Twitter • Exclusive Financial Services Partners

Marketing and ComplianceMost Elastic Roles in CUs

Content Scheduling• Create Ongoing posts• Organize Team (Permission-based

Roles)

“Financial institutions should consider the use of social media monitoring tools and techniques to identify heightened risk,” pg. 16“An oversight process for monitoring information posted to proprietary social media sites administered by the financial institution or a contracted third party; pg. 7

Monitor• Plan of Action• Respond for positive/negative• Outages

Respond / Archive• Delegate

Responses• Attach

Disclosures• Report

About SilverCloud• SilverCloud enables connections to your members

through simple self-service technology solutions• We work with hundreds of credit unions across the

US and have been in business for over 10 years. • Our goals are to deliver one approach that will allow

CU’s to provide better member experiences, streamline operations, open up revenue opportunities and enhance compliance.

“A financial institution may establish one or more specified channels that customers must use for submitting communications directly to the institution.”

-FFIEC Consumer Compliance Risk Management Guidance

CU’s still have a regulatory responsibility to manage negative comments or complaints even if you choose not to host a facebook page

When marketing new products or originating new accounts you advertising needs to be 100% accurate, consistent and compliant with consumer protection and compliance laws

Where do consumers go to complain?

“Consumers just don’t think about going to the government for help” – Internal CFPB survey

They go to their bank – then to social media….

• 26% will post a negative comment on Facebook after receiving poor service• 79% of those who complained about your customer service had their complaint

ignored• 21% of those who complained about your customer service had their complaint

answered.• 51% of those who did get a response had a positive reaction to your brand• 22% of those who responded actually posted a positive comment

(Source: Kiss Metrics)

Social Media & CFPB Complaint Data Comparison

(Source: Beyond the Arc, Inc. 2013)

Social MediaComments

ComplaintsFiled

$214M Fine

Expectation: Be everywhereConsumers are looking for:

• Employees – training, tools, consistency, accuracy• Online – Instant access to accurate financial information from any channel

(online, social, branch, mobile)• Social media – recent FFIEC ruling

Regulators are looking for you to:• Provide consistent service and information across all channels• Enable compliant and error submission across all channels• Integrate information and complaint process with your vendors

CONSUMER COMPLIANCEis complaint reduction & self-service

• Consistent, accurate information in all places

• Educate customers to products, services, policies and processes.

• Higher utilization of existing self-service channels

• 24x7 immediate service

REDUCECOMPLAINTS

MANAGEISSUES

CONSUMER COMPLIANCEis response management

Capture all consumer inquires• From any channel (Website, Mobile, Facebook, Call center)• From 3rd Parties (CPI, Insurance Tracking, Home Banking)

Manage• Queue incoming complaints• Categorize complaints (source, type, severity, product)• Escalate & respond to complaints

Track• Record submitted complaints• Record notes, escalations and all service rep responses

Report / Analyze• Audit• Reports of responses and turnaround times• Analyze for trends

Business Alignment means analytics

Business Alignment means higher loan growth

2008 2009 2010 2011 2012 2013

SilverCloud ClientsNon-clientsAverage

Loan Growth

1.08

1.06

1.04

1.02

1.00

0.98

Business Alignment means cost reduction

• 20% reduction in call center costs• More valuable conversations• Lowered hold times and

abandonment rates• 50% reduction in email• Huge reductions in call volume