The guidelines tackle the problems promotors face when trying to advertise a product using a medium constrained by space and suggest the use of the word #ad in these circumstances.
But with such limited space we asked our panel of experts: “Is it worthwhile promoting financial products and services through social media at all?”
David Hollingworth, associate director of communications at London & Country Mortgages, discusses the benefits of using social media as sign post rather than a conduit for adverts.
Marc Page, Lloyds Bank mortgages director, says its important that adverts directed through social media channels stay relevant and are not intrusive.
Emma Coffey, business development manager, Blacks Connect says we should broaden our minds to the meaning of social media and looks at the contraints of varying types.
The consultation period closes 6 November.
David Hollingworth is associate director of communications at London & Country Mortgages
The recent consultation document from the FCA recognises the fact that social media is an area that is only likely to be used more widely by consumers and firms alike. The regulator has therefore made it clear that it expects firms to apply the financial promotion rules when it comes to social media.
With platforms such as Twitter only offering limited characters it means that firms need to be careful as to how they employ social media. With extremely limited space it is all too likely that a firm could focus on the upside of a product without giving appropriate mention to less positive aspects, let alone the appropriate wealth warning.
Social media is of course here to stay and firms should embrace the opportunities it offers. Rather than attempting to promote services directly it’s more likely to work as an alternative online profile. Highlighting blogs and newsletters to followers in the right way offers a different method of communicating with clients and is more likely to be the way to build a social media profile.
As far as lenders are concerned, something like Twitter is not a useful medium largely as you can’t pick and choose the audience. Communicating intermediary product news for example would risk directing general public to intermediary websites.
It’s a positive move for the regulator to provide guidance and is a timely reminder that there is a right way and a wrong way to engage with potential clients, whether it be digital or traditional media.
Marc Page is Lloyds Bank mortgages director
In the last decade, the growth of social media and digital technology has changed the way organisations interact with their customers. Lloyds Bank currently uses its Facebook and Twitter activity for engaging with customers rather than to advertise financial products.
This could relate to responding to queries or offering topical perspectives on how customers can best manage their money.
In the future, Lloyds Bank may look to advertise using its social media activity, however, this requires a careful balance. It is clearly a fantastic way to speak directly with customers but it needs to be on their terms. Advertising when and where it is not wanted could appear intrusive, forced and potentially unwelcome. The key thing is to stay relevant and in keeping with the medium.
At Lloyds Bank, we are continuing to develop and invest in digital to ensure our customers’ on and offline experiences are seamless. Some people looking for mortgage information online or on social media will still want the reassurance that they can speak to an expert face-to-face if they want to.
We are always looking to introduce new technologies to make banking as easy as possible for our customers. Developing our social media capabilities will be a part of this plan.
Emma Coffey is business development manager at Blacks Connect
Why are we looking at social media differently? We all use it. Maybe you just see the print versions your weekly newspaper or free sheet. It’s all social media, albeit in print, a newsletter through your postal mailbox or an email in your inbox.
Social media is what it is – and not necessarily online. It’s all about us. It embraces us. It surrounds us. It always has.
It’s always been there but today we are taught to think about things differently.
Mediums like Twitter, LinkedIn and friendlier websites like Facebook and MySpace are not the only forms of media which are constrained by space.
TV and radio can be troublesome yet both can get a message out with little cost.
Today, as with other #ads, common sense needs to be applied but it should not stop the financial sector embracing today’s tech to reach what is potentially a new generation.
These are the people that look to social media for guidance in their own life decisions.
If you are looking to use social media as a way to engage with clients then you should make this a priority. But remember – the Financial Conduct Authority is the all seeing eye.
Make sure you are “fair, clear and not misleading”. Social media is a means to reach a far reaching audience. But let’s not over think this too much and continue using common sense.
As to #ads? Well I am sure we will all survive to tell the tale and you can use your own common sense.
