Social media has become a core communication and marketing channel for banks and credit unions. While these platforms create opportunities for customer engagement, they also introduce compliance, legal, and reputational risks that regulators expect financial institutions to actively manage.
The Federal Financial Institutions Examination Council (FFIEC) issued Social Media: Consumer Compliance Risk Management Guidance to clarify how existing consumer protection and compliance laws apply to social media activity.
For regulated institutions, social media is not treated as a separate or informal channel. It is subject to the same regulatory expectations as websites, email marketing, and traditional advertising. Financial institutions must address social media compliance through a documented, risk-based program that examiners can review.
FFIEC social media guidance outlines supervisory expectations for how financial institutions should identify, measure, monitor, and control the risks associated with social media use. Rather than creating new laws, the guidance reinforces that existing legal and regulatory requirements apply equally to social media communications.
This includes obligations related to advertising accuracy, unfair or deceptive acts or practices, consumer complaint management, record retention, and data security. Institutions that treat social media as informal or unregulated frequently encounter criticism during examinations.
FFIEC guidance applies broadly across the financial services sector, including:
Because enforcement expectations are similar across regulators, many institutions work with a social media attorney for banks or a social media attorney for credit unions to ensure their programs align with examiner expectations before an audit occurs.
Regulators increasingly evaluate how institutions manage digital communication channels. During examinations, social media activity is often reviewed as part of marketing, complaint management, and overall compliance controls. Institutions without documented policies or oversight processes face elevated regulatory risk.
FFIEC guidance makes clear that each institution must tailor its social media compliance program to its size, complexity, and level of activity. Even institutions with limited posting or engagement must demonstrate governance, oversight, and accountability.
FFIEC guidance identifies several elements that regulators expect to see in a compliant social media risk management framework. The following components are consistently reviewed during examinations.
Financial institutions must establish a governance structure that clearly assigns responsibility for social media oversight. This typically includes senior management accountability and, in many cases, board-level awareness or reporting.
Governance ensures social media activity aligns with institutional strategy and risk tolerance. Without clear ownership, compliance gaps often go unaddressed.
Institutions must maintain written policies and procedures governing social media use. These documents should address acceptable platforms, content standards, approval workflows, escalation processes, and compliance obligations.
Policies should reflect applicable social media law requirements, including advertising regulations, consumer protection standards, and recordkeeping obligations. Generic or outdated policies are a common examination finding. For more on what these policies should include, see our guide to credit union social media policies.
Employees involved in posting, monitoring, or responding on social media must receive appropriate training. Training should explain compliance risks, escalation procedures, and individual responsibilities.
Institutions should document training completion and refresh training periodically. Regulators often request evidence that employees understand their roles under the social media compliance program. This is particularly important when employees leave online reviews, which can trigger FTC endorsement disclosure requirements.
Many banks and credit unions rely on vendors, agencies, or software platforms to manage social media content or monitoring. FFIEC guidance makes clear that outsourcing does not eliminate compliance responsibility.
Vendor relationships should be governed by contracts, oversight processes, and legally reviewed terms and conditions that clearly assign compliance obligations and audit rights.
Ongoing monitoring of social media platforms is a critical expectation under FFIEC guidance. Institutions must review posts, comments, and messages to identify potential compliance issues, consumer complaints, or reputational risks.
Monitoring procedures should define response timelines, documentation requirements, and escalation paths for compliance or legal concerns.
Financial institutions must retain records of social media activity in accordance with their record retention policies. This includes posts, comments, direct messages, and responses that may be relevant to compliance or consumer complaints.
Failure to maintain adequate records can result in examination findings, particularly when institutions are unable to produce historical content upon request.
FFIEC guidance emphasizes reporting social media risks to senior management. Reports may include engagement metrics, identified compliance issues, consumer complaints, and corrective actions.
Regular reporting supports informed decision-making and demonstrates active oversight to regulators.
A documented social media risk assessment is often the foundation of an FFIEC-aligned compliance program. The assessment evaluates how social media activity impacts compliance, operational, reputational, and legal risk.
Risk assessments should be updated periodically and whenever there are material changes to platforms, vendors, or engagement strategies. Examiners frequently request these assessments as evidence of proactive compliance management. For a detailed walkthrough, see our guide on how to create a social media risk management program for banks and credit unions.
Regulatory examinations often identify similar deficiencies across institutions, including:
Addressing these gaps proactively reduces examination risk and supports defensible compliance practices.
Banks and credit unions increasingly rely on a social media attorney to help design, review, and defend social media compliance programs. Legal counsel can assist with policy development, risk assessments, vendor contracts, and regulatory response preparation.
This support is especially valuable when institutions expand platforms, launch new campaigns, or respond to examiner inquiries.
Institutions seeking to align with FFIEC expectations should begin by evaluating their current social media footprint, policies, and oversight processes. Updating documentation, training staff, and formalizing monitoring procedures can significantly reduce regulatory risk.
For institutions facing upcoming examinations or regulatory scrutiny, proactive compliance planning is critical.
Need help strengthening your FFIEC social media compliance program? Contact an experienced compliance attorney.
FFIEC guidance does not create new laws. It clarifies how existing consumer protection and compliance regulations apply to social media activity. Regulators expect institutions to treat social media like any other regulated communication channel.
Yes. Even institutions with limited social media use must maintain policies, oversight, and risk management processes appropriate for their level of activity. The program should be proportionate but still documented.
Policies should be reviewed regularly and updated when platforms, vendors, or regulatory expectations change. Annual reviews are common, but more frequent updates may be necessary during periods of growth or increased engagement.
Institutions promoting deposit products must comply with the Truth in Savings Act, while loan and credit advertising falls under Truth in Lending requirements. Both require clear disclosures, even on social media platforms with character limits.
Author
Ethan Wall, Esq.
Founding Attorney, The Social Media Law Firm l Nationally Recognized Social Media Lawyer
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