By DWN Staff
The rise of social media has ushered in a new era of communication, marketing, and client interaction. It has become an essential tool for businesses across all sectors, and the financial industry is no exception. Financial professionals are traditionally known for their conservative approach, keen decision-making skills, and robust methodologies to handle their client’s financial affairs. But now, many financial professionals stand out on social media as thought leaders, too!
Unsurprisingly, these professionals readily leverage social media to refine their messaging, expand reach, and augment their professional practices. From Twitter streams to LinkedIn profiles, social media provides financial professionals a dynamic and cost-effective platform for business development, client engagement, and industry thought leadership. Robust usage statistics substantiate this trend.
According to the Putnam Investments’ Social Advisor Study, approximately 85% of financial professionals use social media for business purposes, a 10% rise compared to the past year. LinkedIn ranks as the most-used social platform by financial professionals, with 73% reporting using the platform for professional purposes.
However, financial professionals are not only limiting themselves to LinkedIn. According to a study by Spectrem Group, Facebook (53%) and Twitter (50%) are also prevalent platforms among financial professionals. This statistic illustrates how financial professionals understand the importance and advantage of having a multi-platform presence to connect with a diverse clientele.
“Thoroughly understanding the thinking behind financial professionals using social media necessitates looking at the benefits that social media platforms provide. They consider three critical aspects- client engagement, brand promotion, and networking when using social media,” says Teresa Leno, Founder and CEO of Fresh Finance.
Leno elaborates further on how financial professionals benefit from using social media:
- Client Engagement: Social media platforms allow financial professionals to communicate with clients by sharing relevant updates or economic news. Remember financial education, too; social media platforms facilitate financial awareness, making the advisor stand out as a caring and well-informed professional who wants to educate others to make better financial decisions.
- Brand Promotion: Social media platforms help raise brand awareness and present a well-rounded image for financial professionals. Sharing content, like blog posts, market updates, or financial tips, can highlight their services and help establish them as thought leaders.
- Networking: With a vast array of industry professionals on social media, financial professionals can use these platforms for networking opportunities, finding potential clients, or connecting with industry peers for business growth opportunities.
While social media provides numerous benefits, it also poses challenges for financial professionals. Keeping up with multiple social media platforms can be time-consuming. These platforms also have different ways of presenting content and differing audience expectations, demanding a tailored approach for each site.
“Financial professionals have a wide array of content to select and post to social media within Fresh Finance. Since our platform is for enterprises, their home office marketing and compliance departments have already reviewed and approved these articles for them. This helps cut down on selecting and submitting articles for review, which is a huge time-saving task,” adds Leno.
Social media usage among financial professionals is expected to rise even further in the coming years, primarily when considering the prospect of tapping into the next generation inheriting wealth.
A Content Science Review fact sheet revealed nearly 90% of millennials use social media, and in the U.S., they hold a vast amount of spending power— an estimated $2.5 trillion. Therefore, having an active social media presence can assist financial professionals in acquiring millennial clients, who will help drive future AUM growth.
The statistics reveal social media’s influential role in the finance industry landscape. While it presents its challenges, the benefits for business development, client engagement, and industry networking are too substantial to ignore. As such, financial professionals must embrace social media platforms as a tool to help position their practice for growth.
Teresa Leno worked as a financial advisor and experienced firsthand the importance of financial education to help clients make more informed decisions before a crisis. Through her experience, Fresh Finance was started as a financial content marketing solution to help advisors validate their expertise through sharing content.
