Bank Regulators Issue Guidance on Social Media Usage

Financial institutions using social media channels such as Facebook and Twitter to market products and services may soon have some rules to follow thanks to U.S. bank regulators. 

In a statement, regulators from the Federal Reserve, the Federal Deposit Insurance Corp., and the Consumer Financial Protection Bureau said that “unique challenges” arise from the generally more casual interactions on social media, which is less secure than the lenders’ normal means of communications to its customers.

The regulators published recommendations yesterday that require banks and other financial institutions to monitor the information they post on their social media outlets. They must also stay within existing laws as they market new products such as loans, deposit accounts, or credit cards.

The regulators also suggested that lenders create their own policies to address what their employees are able to say about their place of work on their personal social media sites – though regulators believe employees have the right to talk about it, even if in a derogatory way.

Financial institutions have 60 days to comment on the regulators’ proposed policies.