Financial institutions no longer need convincing that a social media presence is essential. Endless studies and research data demonstrate the point so persuasively that even the initially-reluctant have come around. But practical acceptance of the need for meaningful social media policy guidelines is less universally acknowledged. In the absence of policies, however, social activity can be a landmine for mortgage companies, potentially more damaging than helpful.
Social media policies are essential because of the known risks of unconstrained social activity. Consider a handful of sources of possible damage:
Malicious content can enter an enterprise through social channels. A recent Osterman Research paper says nearly a fifth of organizations have suffered malware infiltration through social media.
Sensitive or confidential corporate data can be inadvertently disclosed on social media.
Social messages may breach the privacy of consumers, employees, or other stakeholders.
Regulatory investigations may result from advertising on social platforms if deemed unfair or deceptive.
Inconsistent or contradictory messages across multiple social platforms may lead to enforcement actions, consumer complaints, litigation and/or reputational damage.
Costs for monitoring inappropriate or unauthorized social messages, fixing problems, and retrieving records of social activity may be higher for organizations without established policies.
Despite these risks, about half of all organizations that use social media don’t have written policies for their use. That’s simply unwise. Even a rudimentary policy is better than none, and it’s not that difficult to implement one.
While different organizations have different needs and will vary in the detail required for an appropriate and enforceable policy. Watch now to learn key pointers for developing a mortgage lender/broker’s social media policy.