Social Media in Wealth Management

by Sameer Joshi or 30-Jun-2016

Social media is now such a ubiquitous channel - with most investors logging on at least daily - that wealth managers can no longer afford to ignore it. Thus far, many wealth managers’ social media activities have been limited to promoting brand or thought leadership, but the channel can be used for so much more. Social media offers opportunities for relationship managers to reach out to new prospects and strengthen relationships with pre-existing clients.


Social media can add value across the client value chain


Widen the target audience: social media will help to target the next generation of wealth

The value of social media efforts cannot be discussed without highlighting the opportunities among the younger generation - as wealth beings to filter down to millennials from their parents, advisors may struggle to connect and respond to their service needs in the way these younger clients expect. Being active on social media can help to bridge the gap and reach out to the younger generation in an environment they feel comfortable in.


Publisher's latest report Social Media in Wealth Management, analyzes how wealth management companies and relationship managers can benefit from using social media. Provides context on how common social media usage is across different demographic segments. Examines how wealth management companies can use social media to promote their brand and promote thought leadership and investment products, and analyzes the most popular platforms for each purpose. The report also analyzes the use of social media in client servicing and analyses the most popular platforms for each purpose and provides an international overview of the recent regulatory developments on social media.


Key Findings


- While the majority of consumers are now active on social media on a daily basis, the frequency of social media use decreases with age: 94.2% of investors aged 18-24 use social media at least daily, while just 44.1% of those aged 65+ log in daily.

- Company policy and the feeling that social media is too public are the most often cited reasons for wealth managers not being active on social media channels.

- The most popular activity companies undertake on social media is brand promotion, at 72.6% of respondents, followed by the promotion of new investment opportunities, thought leadership, and services.

- Client servicing is not yet among the activities wealth management companies regularly practice via social media. Only 31.7% of firms respond to client queries via social media - a very low percentage given the amount of time customers spend on social media.

- For relationship managers contacting prospects, the leading use of social media is the opportunity to build their personal brand followed by the opportunities to research and contact prospects.