In 2024, banks and credit unions have embraced emerging marketing trends to stay competitive in the fast-paced digital landscape. However, with these new trends come legal challenges that financial institutions must navigate carefully. Below, you’ll find an overview of some of the hottest online marketing trends and essential legal strategies to help banks and credit unions enhance their marketing efforts while staying compliant. This summary is based on a recent webinar with Ethan Wall, social media attorney for banks, hosted in partnership with Empowerfi.
To gain a deeper understanding of the insights shared during the webinar, including expert advice from a social media attorney for credit unions on balancing innovation with compliance, you can view the recorded video of the session. This resource is invaluable for any bank or credit union aiming to stay ahead in the ever-evolving world of financial marketing.
AI continues to revolutionize the way financial institutions engage with their customers. From generative AI tools for content creation to predictive AI for personalized ad targeting, AI offers banks and credit unions numerous opportunities for innovation. However, AI also presents significant legal risks, particularly regarding copyright infringement and ownership of AI-generated content.
Compliance Solution: To stay compliant, institutions should implement AI usage guidelines and develop compliance checklists for third-party and user-generated content. This ensures that all AI-driven content aligns with intellectual property laws and internal brand guidelines.
Short-form videos—quick, engaging content often lasting just a few seconds to a few minutes—have become a dominant form of communication across social platforms like Facebook, Instagram, TikTok, and YouTube. These videos are perfect for delivering value or entertainment in a bite-sized format, often resulting in viral content. It’s crucial to ensure you own and protect the intellectual property (IP) of your video content to avoid legal issues and safeguard your credit union’s brand assets.
Compliance Solution: Draft contracts with content creators, secure trademark and copyright protection, and have clear guidelines for video ownership.
Influencer marketing leverages content creators’ social proof, trust, and audience reach to promote your brand. When done correctly, it enhances credibility and can drive significant customer engagement for financial institutions. However, influencer partnerships also come with legal risks, especially regarding disclosures and employee endorsements.
Compliance Solution: Ensure all influencers follow legal guidelines by maintaining detailed influencer contracts, providing social media guidelines, and offering employee training on proper social media conduct.
Programmatic advertising allows banks and credit unions to hyper-target specific audiences using various media types, including native ads, audio streaming ads, OTT (over-the-top) video ads, and even in-game ads. The ability to segment audiences and personalize messaging makes this approach highly cost-efficient. However, it’s important to note that all ads, especially on social media platforms, must include proper disclosures to avoid misleading customers and comply with FFIEC (Federal Financial Institutions Examination Council) guidelines.
Compliance Solution: Provide social media marketing guidelines and create compliance checklists for digital ads to ensure full adherence to advertising laws.
Engagement-driving contests and giveaways are a popular marketing tool for banks and credit unions. Common types include hashtag contests, trivia challenges, and “like and share” campaigns, often featuring prizes like gift cards, free house payments, or event tickets. These campaigns offer a unique way to gain consumer insights and promote brand interaction. However, it’s essential to remember that contests and giveaways are governed by state gaming laws and require clearly defined official rules to avoid legal complications.
Compliance Solution: Develop a set of template rules that can be easily updated for each new campaign. These rules will ensure legal compliance across different jurisdictions.
Marketing trends for 2024 present exciting opportunities for banks and credit unions, but they must be approached with careful legal consideration. By understanding and implementing the appropriate legal strategies, financial institutions can capitalize on these trends while protecting themselves from potential risks.
The Social Media Law Firm specializes in online compliance for banks and credit unions, helping you stay both social and safe. As a leading social media compliance attorney, we offer a comprehensive Social Media Risk Assessment to ensure your digital marketing efforts are legally sound. Contact us today to learn more.
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