Survey: Social media remains vexing issue for financial firms

Messaging apps

Social media is an evolving challenge for compliance managers, particularly at highly regulated financial services firms amid crackdowns on employee use of off-channel communications for conducting business.

A recent survey found most financial institutions do not monitor their employees’ use of social media or factor in market risks exacerbated by social media posts. More than a third of firms are abandoning tech compliance projects.

The survey of more than 400 compliance decision-makers worldwide by surveillance technology firm SteelEye found 63 percent of financial services firms are not monitoring platforms like WhatsApp for compliance, even though 69 percent expect the value of regulatory fines to increase and 63 percent expect the volume of fines to rise.

Matt Smith, chief executive officer of SteelEye, said in a press release the findings indicated “a very real possibility that compliance teams will be unable to fulfill their responsibilities as the regulatory burden becomes unmanageable.”

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