Our marketing crew is wanting to get into the social media scene specifically Facebook. I have many concerns regarding this but don't really know what the rules are. Our IT guy believes that you can't post rates or anything like that on facebook. Is that true?

Are there any guidelines or rules to follow regarding social networking or is it still fairly new?

I would appreciate any advice that I can receive.
Thanks!

One more question, are we allowed to let customers or "fans" post comments on the page?

I don't think the regulators have come out with any guidance on social media. If you post loan rates on Facebook for loans subject to Reg. Z, you would have to comply with Reg. Z's advertising rules and display the Equal Housing Lender legend and logotype.

There is nothing specific to social media yet from the regulators. However, there are a few items which could be beneficial.

First, FINRA came out with guidance in 2006 which includes some good best practices:

http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p120779.pdf

In addition, the FDIC released a guide for businesses that have government contracts which also contains several best practices:

http://www.fdic.gov/about/diversity/sbrp/73.ppt

Here's an excellent analysis outlining why this is a waste of bank time and resources.

Excellent article, Richard. I agree with it.

I fear that Marketing thinks they have to be "doing something" with social media or they are not doing their job. And Management likes it because they think it's "free".

Let's hope the bold and enlightened will stand firm.

This was a GREAT article. Just wish we had seen it sooner.
We do have a FB and Twitter page/account for our Bank and like the article says our "followers" are minimal, mostly being employee and employee relatives. We cannot access FB or Twitter from our work computers but yet they all encouraged us to "like" our bank. From the status updates we have posted, it is generally employees that "like" the comment/update. We did share tips during Identity Theft Prevention Week and did get some positive feedback from some of our customers that do like us, however.

My current take on bank use of social media is to use the tools that allow a bank representative to 'listen', 'look' see what is being said about their bank, other banks in their market. Secondly I suggest social media be considered as another public relations tool....if used at all.