The Financial Services Authority (OJK) has introduced the Banking in Social Media Guideline for commercial banks to ensure social media activities are managed in a professional and responsible manner (06/04).

Chief Executive of Banking Supervision at OJK, Dian Ediana Rae, launched the guidelines alongside banking industry leaders in Jakarta on Monday.

The initiative recognizes that social media has evolved into a primary communication channel between the banking industry and the public.

Strengthening Interaction and Digital Product Development

According to Dian, social media is now a vital tool for banks to increase customer interaction and expand service reach.

It serves as a strategic channel for strengthening customer loyalty and developing digital-based banking products.

However, the use of these platforms introduces new reputation risks stemming from digital sentiment that could potentially impact financial stability.

The Three Pillars of Social Media Management

The new guidelines organize social media management into three main pillars: Governance, Risk Management, and Compliance & Monitoring.

Governance focuses on the structure and processes of management, while Risk Management integrates social media risks into the bank's broader risk framework.

Compliance & Monitoring ensures all social media activities align with internal policies and existing laws.

Crisis Management and Social Media Stress Tests

The guidelines include a social media crisis management strategy, introducing "social media stress tests" as a new risk management instrument.

This policy is informed by global cases, such as the collapse of Silicon Valley Bank and Credit Suisse, where negative sentiment accelerated bank runs.

Dian noted that financial stability is no longer determined solely by balance sheets, but also by the speed and quality of digital communication management.

Regulations for Finfluencer Partnerships and Consumer Protection

Specific regulations are included regarding bank partnerships with financial influencers, or "finfluencers," focusing on transparency and conflict of interest.

These rules aim to protect consumers from misleading information while maintaining the integrity of marketing for financial products.

The Banking in Social Media Guideline complements existing OJK policies on digital transformation, cybersecurity, and artificial intelligence in the banking sector.

PHOTO: OJK

This article was created with AI assistance.

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