FIs face increasing pressure to ensure their marketing materials are compliant

by Samuel Pordengerg Nov 23, 2022 News
FIs face increasing pressure to ensure their marketing materials are compliant

Maintaining an accurate, fair, and compliant presence online is becoming more difficult for marketing teams as banks and financial institutions become increasingly digital. CMOs must think strategically about how to attract customers and build credibility by marketing personalized products and services, as well as ensure their messaging complies with regulatory standards.

Two trends that are shaping the way these institutions approach marketing are highlighted in an entry in the Banking Journal.

  • Financial regulators are adjusting their regulation style and updating guidance to adapt to modern methods of communication. This is apparent in the fines US regulators recently levied on banks for employees’ improper use of the messaging platform WhatsApp.
  • Regulation by enforcement is becoming a common approach, with crackdowns and penalties on the rise. According to the ABA, the Financial Industry Regulatory Authority (FINRA) assessed 60% more fines in 2021 than 2020, despite handling fewer cases.

What can banks and financial institutions do? Firms can use some of the tactics listed here to make sure their marketing content is meaningful.

Clear communication is required between compliance and marketing teams.

  • Compliance teams must review the firm’s adoption of new marketing channels and create an action plan for how a new channel will be used, and how the financial institution’s image should be reflected on that channel.
  • Digital channels change quickly. Compliance and marketing teams should discuss consumer needs, regulations, and the channel early and regularly.
  • Firms should offer ongoing compliance training about the regulatory landscape around the various channels used for marketing.

Tech tools can be used to manage and monitor compliance.

  • Manual reviews are slow, laborious, and not always error-proof. There are software solutions that streamline compliance checks and that are scalable to handle different types of content for different channels.
  • All marketing materials must be reviewed for compliance. They should be versatile enough to be compliant on any channel that they may end up on.
  • Marketing content should be reviewed, no matter who creates it.

Knowledge sharing is promoted by educating employees.

  • Make sure all employees know how to handle any scenario that might come up on any media platform, such as receiving a direct message or a public response.
  • Non-compliant marketing material should be properly disposed of so it’s not accidentally shared.

CMOs are now charged with not only bringing new customers through the door but also keeping them engaged with and loyal to the company's brand. Content compliance breeches could ruin a firm's reputation and destroy customer trust.

Check out our report, Bank CMOs and Personalization, to learn more about how the bank CMO role is changing and what CMOs are doing to deal with economic uncertainty.