When it comes to the FFIEC social media guidance for banks and credit unions, your financial institution needs to ask itself an important question – are we in compliance?
While social media is an awesome method of promoting your products and services, you also need to comply with the law. Sometimes you are required to include the official advertising statement, such as Member FDIC or Federally Insured by the NCUA, and sometimes you’re not. How can you know if you’re using the advertising statement correctly on social media? Start by asking these three questions:
You must include the advertising statement every time you promote an insured product, such as a checking or savings account, in any medium. But be careful not to use the statement if you’re promoting a product that is not insured by the FDIC or NCUA – as that will mislead consumers and violate the law.
To meet the standards for social media compliance for banks, advertisements need to include the official statement of FDIC membership, usually worded, “Member FDIC.” For credit unions, there are three options for using this option – either “This credit union is federally insured by the National Credit Union Administration,” “Federally insured by NCUA,” or you can simply use the official NCUA sign.
The statement must be on the “first page” of the advertisement and be clearly legible. This could mean on your cover photo, posts, or in your ads depending on how you use social media to promote your products.
According to the NCUA guidelines,
Very bad things. Failure to use this statement correctly can result in a regulatory investigation, audit, or cease and desist order. Eek.
So, how can you protect your financial institution? To ensure that you’re meeting the guidelines regarding social media compliance for credit unions and banks, the first thing to do is contact the Social Media Law Firm.
We can conduct a social media risk assessment to determine your current level of compliance with regulations that govern the banking industry on social media. With our assessment in hand, you’ll have the tools you need to execute your social media strategies while eliminating social media legal risks.
Sound good? Then let’s get started! Contact us today for your free consultation and let’s work together to make sure your financial institution meets and exceeds the social media standards for banks and credit unions.
