Bankers are taking action to protect against online threats after the internet-fueled run that toppled Silicon Valley Bank two months ago. Executives are devising programs and plans to counteract rumors around the health of the banks that could lead to deposit outflows or weigh on the stock. Banks are rethinking social media’s role as a potential risk rather than marketing tool, and are taking steps to add social media into risk-management programs. They are also contacting customers who complain on social media to address their issues quickly.
Regulators are also watching, with the U.S. Federal Deposit Insurance Corporation and Federal Reserve both underscoring how technology has sped up bank runs. Banks are cognizant of the risks and are beginning to understand that they need to dedicate more human resources to social media monitoring.
The swift downfall of Silicon Valley Bank has been a wake-up call for the banking industry, and banks are now working on updating their emergency response and risk capabilities, along with business continuity plans to tackle this threat.