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Are US banks rethinking social media as a threat, not as a marketing tool?


4. Juni 2023

Do social media now present existential deposit flight risks?

Reuters wrote an interesting piece titled "US banks rethink social media as a threat, not a marketing tool"

They argue that following the internet-fueled collapse of Silicon Valley Bank, the banking industry is increasing its focus on social media risk management.

Previously seen as a reputational threat, social media now presents existential deposit flight risks. Banks are implementing measures to counter online threats that could potentially damage their stocks or trigger large deposit outflows. Risk departments are developing plans to measure, prepare for, and respond to these internet-related risks. The banking industry's swift move to include social media in their risk management programs highlights the significant impact the digital world can have on traditional banking systems.

This serves as a wake-up call for all financial institutions to take social media into serious consideration as a potential risk and not just a marketing tool.

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