Social Media Capture 4 (SMC4)

Leveraging the Power of Social Media, Mitigating Compliance Issues

Business Application

Business Challenge

Social networking demographics are extremely attractive to financial services companies, offering tremendous opportunity to grow market and wallet share. For example, Facebook (by far the largest and most popular social network with roughly 520 million users as of late 2010) boasts 90 percent of its users are younger than 55, and 69 percent of those are mutual fund owners.

While tremendous potential exists to use social media to extend the reach, relationships, brand awareness and affinity for their brands – especially with younger generations that represent future and emerging customer segments – financial services organizations face a number of challenges. Chief among these challenges is the need to stay compliant with new and emerging regulatory compliance and security requirements and corporate policy mandates surrounding social media.

Recognizing the risk implications for social media in the financial services industry, the SEC and FINRA recently issued new guidance for financial services companies using social media regarding promotion/advertising, supervision and monitoring, and recordkeeping. FINRA requires appropriate recordkeeping to prove no inappropriate claims were made to a customer or prospect. Social media also makes it incredibly easy for individuals to share confidential, sensitive or otherwise private information (both inadvertently and maliciously), potentially violating privacy or other laws. Without archiving tools, social media interaction yields business records that can be lost, leading to eDiscovery, legal hold, evidence spoliation and other problems. Additionally, an inability to link identities from social networks to a corporate identity can pose significant problems from a risk management perspective in the context of eDiscovery and regulatory compliance.

Aside from leveraging the benefits and countering the risk implicit in social media, companies also need to track and measure the impact of social media marketing, as well as extract vital demographic information from their interactions. What is needed is a solution to help financial services companies leverage social media and avoid compliance pitfalls, and which enables them to gain insight from social media initiatives to hone and refine its use for greater marketing gains.

The Solution

Social Media Capture 4 (SMC4) enables financial services companies to leverage the game changing marketing opportunities that social networking provides, while addressing the unique compliance requirements that this entails. SMC4 manages the four key areas of social media that are required for success: capture, control, compliance and communication. SMC4 logs all social networking interaction, monitors incoming and outgoing messages, and archives all communication for further compliance review.

The solution features embedded content dictionaries tailored specifically for the financial industry that it leverages to monitor two-way communications between financial advisors, customers and potential prospects. Workflow passes intended outbound information for textual analysis to interpret if a user is saying something inappropriate. If so, it is routed to quality control for corrective action.

The entire system can be searched for relevant information. The resulting items can then be locked for legal hold and therefore cannot be deleted until such a time as the legal issue or compliance has been satisfied. Additionally, by adhering to eDiscovery standards, an extract of the data and all related information can be easily copied to transfer media and presented to the appropriate authorities or opposing legal counsel for their use. Integritie also provides entity analytics tools for analyzing customers and prospect demographics, as well as the overall effectiveness and return on investment of social networking based marketing.

Value Proposition

SMC4 enables marketing departments and advisors at financial services organizations to use social media to earn more business and gain customer loyalty, while still remaining compliant with regulatory requirements – particularly the new regulations that FINRA and the SEC released in 2010 – as well as security requirements and corporate policy mandates.

SMC4 logs all social networking interaction and archives it for compliance review. Additionally, outbound correspondence is audited prior to it ever leaving the company, therefore avoiding potential issues with message content. SMC4 also provides legal discovery that is compliant with electronic discovery standards.

The solution gives financial services firms the tools to create and manage policies focused on social media, as well as measure the success rate and ROI of social media marketing initiatives. Detailed analytics capabilities enable financial services firms to compile and mine rich customer analytical data, providing valuable demographic information.

SMC4 is affordable and is offered as a turnkey Software as a Service (SaaS) solution, for easy implementation and low overhead, eliminating the need for in-house IT support.

Company Description

Integritie is an IBM Solution Partner with substantial expertise in delivering, managing and supporting Enterprise Content Management and Business Process Management solutions. Alongside developing and selling its market-leading Case Management Solution deployed on the IBM FileNet platform, Integritie delivers end-to-end IBM FileNet services.



For more information, please contact:

Michelle Cassidy
+44 (0) 7734 569686