Social media has become an integral part of most businesses, with financial institutions using it to greatly engage with customers.
Their teams are growing with representative, employee advocates and advisors all wishing to engage in social selling. This has drawn the sights of regulators and compliance programmes.
Social media compliance originally focused on text-based content, but as the amount of video-based content being released has increased, they are updating guidelines. Firms cannot afford to avoid using video, as research from Biteable claims social video generates 1,200% more engagement from users.
Theta Lake has offered advice to companies looking to continue leveraging video on social media. Firms either accommodate their protocols to video compliance or they expose the firm to unmanaged risk.
There are three key subjects a firm must address for social media video. The first is a requirement there are pre-review capabilities which include analysis of the video’s visual content. Secondly, they must capture, archive and supervise both the visual and audio components of video content present on users’ social accounts, further than simple transcription.
Finally, a firm needs a process and technology which support effective supervision at scale, to cope with rising video content usage.
Regulations around video advertisements differ around the world, but they typically require a video to be pre-reviewed and approved to ensure the content is fair, balanced and not misleading, such as with FINRA Ruel 2210. Other obligations include that a firm establishes a recordkeeping system to maintain the communication pursuant, as stipulated by the SEC. Other compliance rules include data recovery and searchability.
Theta Lake explained that pre-reviewing a high-volume of video content is incredibly laborious and time-consuming. Additionally, the post-review of videos from an archive is also not supported by email-first archiving systems.
The RegTech believes the only way for financial institutions to keep up with the changing environment is by using a RegTech solution capable of automating the tasks.
Theta Lake offers a pre-built solution for review, approval and archival of social selling and marketing videos. Its platform can detect compliance risks in audio, visual and text that is spoken or shown in videos. The analytics solution is driven by AI and data scientists.
The platform can integrate with widely used systems such as Vimeo, Vbrick, Vidyard and others.
To read the full guide on social media video compliance click here.
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