Social Media is being increasingly accepted in today’s business world, no matter the field. But Social Media in the Financial world, and more especially for Financial Advisors, Wealth Managers and even Private Banks, is still subject to a lot of rejections. Asset Management firm Putnam Investment recently came up with a survey from July 2014 taken from over 700 financial advisors in order to better understand how Financial Advisors use Social Media. Results will make think twice about your Social Media efforts!
“66% gained clients via social media“…I guess this number is self-explanatory. It is a huge number indeed! But looking more closely, it makes sense. People connect and interact more and more with social media; Facebook, Twitter, Youtube, Tumblr, Pinterest, Instagram, Google Plus…are some of the ones most of the people know. Just like any business, you go get clients where they are…and in today’s the World, even in the Financial sector, clients are on Social Media!
Now when it comes to Social Media, people tend to get confused; Facebook, Twitter, Pinterest…which one should I pick? Although I tend not to assume anything with my own clients and like to start from scratch with basic questions (ex: where are my clients?), I will strongly recommend Linkedin as a must for any Finance professional. Linkedin is “The” Social Media for business and its importance is constantly growing with over 332M users in January 2015. According to Putnam survey, 64% of Financial Advisors use Linkedin and 56% of them gained new clients this way. Still thinking?
“36% of financial advisors use Facebook“… and 83% of them gained new business this way. Boom! I know, it’s a LOT! Most of the advisors using Facebook here are under 30 years old, which make sense. But think twice, it means for Financial Advisors, clients are also on Facebook, while a considerable number of advisors would never step in. Here, we are tapping into the famous “Millenials” target group, which, as all Finance professionals know, hold the future of the Financial Sector. They bypass bank wire cost using TransferWise or Facebook just like in Chile with BBVA and hack card fees using Magnises, NYC's latest hype Black Card.
Now, are you still thinking it is a waste of resources to invest in Social Media? With time, these figures will only get bigger, new social media platforms will arise and more tools will help Marketing Managers track the ROI on Social Media efforts. Just like with any craft, the sooner you start, the better you’ll get!