Banks control the social media profiles of their employees
Financial service providers often do not allow their employees to use social networks while at work because there have been some allegations of abuse. The pressure to build up a social media presence is also increasing for banks and investment firms, as the New York Times reports. Some companies are now trying to reconcile these conflicting requirements. Approaches range from tight control of employee accounts to the use of prepackaged messages written by the marketing department. Companies operating in the USA in particular are very cautious.
“US stock exchange law is very strict. After each crisis, the laws were tightened to increase transparency. It is understandable that institutions need clear rules for communication, ”says Jörg Blumtritt, Chairman of the Social Media Working Group. Many Wall Street firms forbid their employees from using personal communications for fear of violating the strict regulations of the Securities and Exchange Commission. Even checking private e-mail accounts is taboo in many companies. Nevertheless, the prospect of marketing success is gradually attracting financial service providers to social media. The messages from the employees are meticulously checked, which can take some time.
“The social media presence is important for financial service providers, if only out of respect for people who mainly get information there. People should accept the fact that a message is two to three hours late, ”said Blumtritt. Some institutes, such as Morgan Stanley Smith Barney, even go a step further and tell their employees what to write. “The information content is less in the case of pre-prepared reports. People notice that and accordingly, such messages are less read. The financial institutions have yet to find the right form, ”says Blumtritt.
Resourceful US start-ups have recognized the trend towards social media in the financial sector and offer software solutions for monitoring employee accounts. Business is booming. The companies that have ventured into the social networks speak of a great success, even if the value of censored news seems doubtful. The caution of the companies is definitely justified. In the USA, several allegations of abuse have already caused trouble in the social media world of investors.
A broker advertised papers behind the back of her employer on Twitter without disclosing that she had invested in them herself. There have also been attempts at fraud with securities on social networks. As a result, the postings by financial service providers are still very strictly regulated. Nevertheless, the employees of many companies are encouraged to add a personal touch. Deutsche Bank is also expanding its presence on the social web. The courage of the companies will hopefully increase as the frenzy in the networks increases. pte