What Every Financial Institution Should Know About Social Networking

The aim of any business is to be successful and profitable throughout the lifetime of the organization. The evolution of communication technology in recent years has helped make this possible by improving a business’s ability to network with its existing and potential customers. What once required face-to-face conversations and the physical exchange of contact information can now be done in an entirely virtual environment with just a click of a button.

Advances in communication technology, such as texting, blogging, emailing, media sharing and gaming, have created new social norms and revolutionized the way people communicate. It is no wonder, then, that the financial services industry is beginning to use various forms of Computer Mediated Communication (CMC) to enhance customer service and improve current products and services. The most popular form of CMC are social networking websites such as Twitter, Facebook, MySpace, and LinkedIn, which are used primarily to maintain or build connections among users.

Social networking sites represent a large market with tremendous growth potential that can be easily targeted by financial institutions if they know how to use these sites to their advantage. Like many organizations that have already experienced the benefits of using social networking sites to enhance their business, financial institutions are beginning to understand and embrace the power of social networking as it relates to their day-to-day business activities as well. Whether educating customers on new services, boosting customer confidence, increasing sales outreach or personally connecting with their customers to meet their banking needs – social networking is a vital communication tool that financial institutions can utilize in many of their customer business interactions.

Understanding Social Networking
Social networking is a form of collaboration and networking where individuals develop groups and associations, often forming a virtual community. While social networking is possible in a face-to-face setting, such as on a college campus, it is most often seen online in a CMC environment. The size and popularity of the “communities” created by MySpace and Facebook and other social networking websites have experienced substantial growth as more and more people invite their acquaintances, co-workers, friends and family members into these virtual communities.

The traditional roles of the sender and receiver involve delivering messages in a clear and concise way and providing feedback to achieve agreement of a particular subject. Social networking uses these same basic building blocks but accomplishes the end results in a slightly different way. The cues that help facilitate understanding in a face-to-face environment (e.g., intonation of voice, body language, facial expressions, physical distance, etc.) are often removed in a social networking environment. Though some websites offer an audio visual element, social networking is largely text-based, relying on “digital gestures” to demonstrate emotions and add emphasis to a message, such as:

• Forwarding.
• Recommending.
• Sharing.
• Tagging.

Social Networking Applications for Business
Networking has always been a key success factor in the business world. Networking involves linking together individuals who, through trust and relationship building, become walking, talking advertisements for one another. Traditional networking often takes place face-to-face at business lunches, conferences or exhibitions, where people are able to meet and establish mutually beneficial working relationships.

Online social networking offers many of the same benefits as traditional networking, while allowing bankers to more easily network with the average consumer as well as with their colleagues in the financial industry. Used appropriately, online social networking offers businesses the opportunity to develop meaningful, long-lasting customer relationships.

A study of the banking industry and the ways in which several banks’ board members networked with others showed that though these professionals are interested in using networking to secure new customers and to maintain and develop existing customer relationships, they also want to use networking to represent their banks in community, professional and trade organizations and to procure market trends and competitive information.

To achieve the goals identified in this study, board members and other bank employees must first understand what social networking is and how it can be used to position their banks above others in the industry. If properly trained, these employees can use social networking to achieve their banks’ organizational goals and place their banks in the top positions in the industry in the following five ways:

• Community building.
• Product research.
• Customer service.
• Marketing and promotion.
• Transparency.

Social networking is currently being used to bolster the reputations of the financial institutions that use it, providing information both internally and externally. This type of information sharing builds consumer confidence and helps employees understand the importance of their roles within their banks and how they should strive to achieve the highest standard of customer service.

Challenges of Social Networking in the Workplace
One of the first challenges of integrating social networking with the workplace is helping employees understand the importance of using this technological tool. The next challenge is in addressing the training needs of the organization to bring all employees up-to-speed on the etiquette, functionality and general norms of such a medium. This means determining who will be maintaining the websites, how end users will experience the websites, and how policies and procedures concerning social networking will be shared, and with whom inside of the organization. And finally, relationship management in a virtual environment poses a challenge. This last challenge should be a primary focus when implementing a social networking-friendly policy or procedure.

A great deal of the CMC that occurs in social networking happens through what has become known as Social Information Processing (SIP) theory. The theoretician who first introduced SIP, Joseph Walther, stated that the nature of relationships created online can be drastically different from those established in person, particularly when individuals act differently than they would in a non-virtual environment. While Walther acknowledged that the rate at which these relationships are formed may change over time as individuals become more familiar with the technology, he argued that relationships in a CMC environment would take up to four times longer to establish.

To counter this potential limitation, banks might seek to make use of the theory of attribution, which states that individuals link observed behaviors of others with causal explanations to help them understand what type of people they are communicating with. The time to develop relationships can be shortened using attribution theory because bankers can use their observations to make product or service recommendations based on needs that they have established.

Using Social Networking to Connect with Customers
Though social networking poses its own challenges, it can also be used to overcome other challenges that banks may face. For example, social networking allows financial institutions to boost consumer confidence, increase sales, and strengthen customer relationships, which are all areas of concern as they can give a bank a competitive edge over others in the banking industry.

When consumer confidence is low and distrust of the banking industry is high, particularly in times of economic crisis, social networking has allowed for greater transparency and has opened up a conversation with consumers. The public forum created by websites like Facebook, Twitter, LinkedIn and MySpace provide the financial services industry an ability to address customers’ banking needs by:

• Acting as a medium for customers to send their questions and concerns to a bank, with immediate feedback from a banking expert.
• Replacing one-sided information dissemination like press releases or bank-sponsored advertisements.
• Reassuring the public of safety and soundness policies and procedures.
• Eliminating skepticism through informative links, text, graphics and audio or visual elements.
• Educating customers about products and services that address specific needs.

Protecting Customer Information
One of the main concerns of financial institutions is the protection of information and financial assets. As technology makes it easier to communicate with people in remote locations or to conduct financial transactions, it also enables thieves to obtain customers’ confidential, nonpublic information, putting customers at risk of identity theft and other similar schemes.

Financial institutions have addressed these potential information security breaches by creating Know Your Customer (KYC) programs and prioritizing identity verification and the reporting of suspicious activity. The same precautions and care should be exercised when using social networking websites to ensure that customer information remains protected.

Implications for Legal Compliance and Record Keeping
Once a financial institution’s directors and staff understand the implications and proper use of social networking websites, it is important that the institution’s policies and procedures be revised to reflect the addition of these new business activities. This ensures that the institution remains in compliance with industry laws and regulations, and it demonstrates to the public that the organization is fair and respectful of customers and employees and that it works to protect its customers’ information and financial assets.

The Financial Industry Regulatory Authority (FINRA) recently issued a publication that provides guidance to financial institutions regarding the use of social media in their business operations. FINRA Regulatory Notice 10-06 outlines the necessary recordkeeping requirements that financial institutions must abide by and provides guidelines for the supervision of non-static messages sent social networking websites.

Because social networking websites are fairly new and financial institutions are only just beginning to explore their potential uses, the twelve government agencies that control the financial services industry, in addition to other organizations like FINRA, are continuing to develop and amend regulations. For instance, the use of social networking affects advertising requirements for financial institutions, as stated in Regulations Z and DD. It also affects Federal Deposit Insurance Corporation (FDIC) membership, Federal Housing Administration (FHA) and non-deposit retail investment and fair lending implications. It is the responsibility of each institution to be aware of current regulations and how their use of these websites affects their compliance current law. Management should also understand the risks of noncompliance and be sure that their policies and procedures are updated to reflect these changes.

Final Word
Financial institutions must consider the risks and rewards of using social networking tools in their everyday business operations, and ensure that these tools conform to policies and legislation, while meeting the needs of their customers. Because customers are the driving force for success in the financial services industry, the key to protecting them is through employee education. It is imperative that bank employees are appropriately trained before and during the use of any type of social networking tool. Understanding how this new form of communication impacts the organization in the long-term can help a financial institution plan for and attain future success, while focusing on keeping customer relationships strong and information and financial assets secure as social networking becomes a more prominent business tool.

Dr. Linda Eagle is Founder & President of The Edcomm Group Banker’s Academy-a 23-year-old education and consulting firm dedicated to serving Banks, Credit Unions, Money Services Businesses (MSBs) and all areas of the Global Financial Community with thousands of generic and customized training programs in areas such as BSA/AML, Regulatory Compliance, Teller Training, Systems Training, Sales and Service Training, and many more.

The Best Online Gaming Buys

If you are an online gamer, the term MMORPG is a term you are familiar with. Or even you are not, then you probably have been playing it all along with no clue of it name. Your MMORPG experience can your new source of income if you have any eso gold in account that you wish to sell. Your financial woes end here at S and F where we conclude your deals and hook you up with the bestbuyer in exchange for your eso gold. For adrenaline junkies in gaming, there is the adrenaline bot to increase your online gaming experience. The map control is one of the most amazing features that has got gamers hooked to it.
The bot is able to see all the floors and many places and you can draw your map to mark the zone that are laden with obstacles such as trees or rocks.You may as well decide to sell or buy an account according to your preference as we are here to meet your expectations and so much more. You will have to secure the account with your password once you have purchased it and received the necessary login information.

Many gaming stores have sprouted from nowhere all claiming to offer such services such as the adrenaline bot but we here to redefine the concept as many of them do not know what they are dealing with. We are doing so by providing quality transactions in terms of efficiency and transparency. Many gamers have come to S and F to sell or buyeso gold after having unsuccessfully tried with dubious sites that may be out to dupe them. The adrenaline bot gives you best settings for the game conditions out of game interface panel. This bot is exceptional in its family and will offer you unsurpassed gaming experience so that you can get the best out of the Elder Scrolls online. If the game is becoming somewhat boring, don’t hesitate to sell your account all the eso gold init.

Sellers and Friendshas been the best gaming store that online gamers can now call home as we make sure to stock all our servers with eso gold so as to meet the demand. Some cash on the side is sure way to reward yourself after all the hours spent online playing your favorite game. The prices we offer are insane and we accept payments from PayPal, Skrill as well as Bank Transfer. Give us a visit today at Sellers and Friends you will realize that selling eso gold has never been easier. We help you finalize the deal between you and the buyer for your eso gold. We also have on display a list of items that have been ordered by gamers so that sellers can view them easily. S & F can also find the desired game item for you. Entrust us with your virtual items such gold and coins as well and accounts. We will find the best buyers for them and settle a deal for you.

3 Success Secrets on How to Manage Social Networks Effectively

The discussion whether or not to use Social Media Marketing has died down. By now, the business community agrees that social networking is a must for every business. But using online networks is not an easy and fast fix, like thought before. In fact, a recent study has found that people who use social networking successfully spend an average of 6.5 hours a week on it. That is a long time in order to be successful. Now the issue is to find a way to manage the networks better in order to recoup some of the time. Let me introduce you to 3 secrets on how to manage your networks effectively. You will be more successful and save more time on top of it.

The first success secret is to link your social networks effectively.

It will not be beneficial for you to link all of your networks to each other. The result will be that you have a lot of double (or even triple) content in each of your networks. You really want to have each piece of content only one time in each network. For you to achieve this goal, you have to think carefully about how to link your online networks. Consider as well in which network you are more present and in which not. Another important point to consider is the question if all your posts fit in each network? You might have a more personable approach in Facebook and Twitter, but a more businesslike approach in LinkedIn. I link my Facebook Fanpage to Twitter, Twitter to LinkedIn and my Blog to my Facebook Fanpage. It works well for me because I am mostly in my Facebook Fanpage. This way, I do not have any double posts, but everything I put into my Facebook Fanpage will be distributed to all my social networks. But just like I said before, consider your particular strategy first before you link your social networks. After you have linked your social networks effectively, you should use a social networking management tool.

The second success secret is to use a social networking management tool like Hootsuite or Tweetdeck.

The main reason why you need a social networking management tool is to save time. You do not have to sign in and out of each network every time you want to check your messages or you want to post something. Instead, you just sign in to you management tool and you can do everything right from that platform. That alone is a huge time saver. In Hootsuite, for example, you can put your Twitter account, your Facebook profile and your Facebook Fanpage in different tabs. You simply switch from tab to tab to see what is going on in your network. You can also post status updates in all your social networks you have registered with Hootsuite. But be careful with that – you do not want to have double content in your networks. Remember how you have your networks linked together before you post. Just try it out and you will be amazed how easy managing your networks can be. Now, off to the third secret.

The third success secret is to use automation without losing authenticity.

Social networking can only be effective if you are authentic. That is a fact. Now, you could argue that automation is not authentic and goes against this very important fact. The solution is that it depends on how much and what you automate. Spending 6.5 hours a week in order to be successful in Social Media is nearly one complete workday of the week. That is a lot of time to use for effective social networking. In order to manage your time better, you don’t have another choice but to automate certain steps of your online networking. Some of the tasks in online networking lend themselves perfectly for automation, like sending DMs (direct messages) to new followers on Twitter. Additionally, you can schedule just a couple of Tweets a week to go out automatically. As long as you still go and check your Twitter account in person and answer your DMs, you are still authentic. Another area that lends itself for automation is to send out your blog post to all of your social networks. You should not automate more than 20 % of your social networking. If it is more than that, authenticity is just not there anymore.

As you can see, you can save time by linking properly, using a social networking management tool and by using automation in moderation.