The Compliance Risk of Social Media
The guidelines recently issued by the FFIEC on risk management and the use of social media for financial institutions only scratches the surface of this burgeoning issue.
Last week, the FFIEC released proposed risk management guidelines for financial institutions using social media. The guidelines did not delve too much into specifics, offering more of a broad outline of the potential risk and compliance issues that can arise in the burgeoning social media channel.
"Financial institutions may use social media in a variety of ways, including marketing, providing incentives, facilitating applications for new accounts, inviting feedback from the public, and engaging with existing and potential customers, for example, by receiving and responding to complaints, or providing loan pricing," reads a portion of the FFIEC paper. "Since this form of customer interaction tends to be informal and occurs in a less secure environment, it presents some unique challenges to financial institutions."... Read full story on Bank Systems & Technology
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