Wealth Analyst Katri Tuomainen has been working on our Social Media in Wealth Management report. Here we ask her about what she discovered in her research.
- What was the most interesting thing you found out when researching this report and why?
Not all wealth managers have yet understood how crucial being active on social media is. Globally 37% of wealth management companies do not engage with HNW clients on social media at all, citing company policy and social media being too public as the main reasons for not doing so.
However, I was impressed by the level of social media engagement among some of the largest wealth managers (which of course have the most resources to devote to it). Not limiting themselves to the vanilla version of social media activity – a profile on Facebook, LinkedIn, and Twitter perhaps – some have looked into other platforms as well. JPMorgan for example has used the geofilters on Snapchat to target graduating students, and will use geofilters at its Corporate Challenge races in New York and London.
- Why should wealth managers be on social media anyway?
That’s where investors are: according to our statistics, globally 77.8% of consumers with investments log into their social media profiles on a daily basis. This trend is particularly pronounced among younger investors. One of the main benefits of social media, beyond general brand promotion and marketing, is that it enables wealth managers to reach out to a younger audience. There are also benefits for relationship managers on an individual level, with the ability to use social media to research and contact prospective clients, nurture client relationships, and build their personal brands.
- What are the main challenges that you foresee for wealth managers in terms of social media over the coming year?
There are two types of challenges. First there are those challenges relating to setting up a social media presence – particularly as some competitors now have several years’ worth of social media experience. Those wealth managers still lacking a social media presence should rectify this quickly. While some competitors are by now are far ahead in the social media game, a minor consolation for latecomers is that there are now numerous examples of how wealth managers should execute their social media strategies.
Second, for those wealth managers already present on social media, the challenge is dealing with the increasing variety of platforms where customers can and should be targeted and met. In terms of content, what works on Facebook or LinkedIn is very different from what works on Snapchat, for example.
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