Advances in technology, especially with social media, have changed the way businesses around the world operate today. The same is true in regards to social media in financial services. Large institutions like Fidelity, Wells Fargo, Merrill Lynch and several others are utilizing social media for their financial advisors in an attempt to connect with potential and current clients easier. Some institutions have taken their efforts to high levels when it comes to investing in financial social networking sites, which is important for seizing market share today.
Why Large Financial Institutions Are Investing in Social Media
A recent survey conducted by eMoney indicates almost 98% of financial advisors believe extensive client communication and marketing helps them grow their business. On the same survey, about 86% of financial advisors said they need help with their marketing efforts.
Putting together a marketing campaign isn’t cheap, which is why many of the large financial institutions are turning to social media. The outreach is much more extensive when using financial social networking sites, rather than traditional marketing efforts. The large financial institutions also recognize the value and convenience of social media platforms. Not only does investing in social media allow advisors to do their jobs more efficiently, but it is also a great way to help bring in new business.
How These Institutions Are Supporting Advisors
Looking at Merrill Lynch specifically, this company has invested in creating websites specifically with a built-in LinkedIn platform. These websites allow advisors to create their own personalized websites and give them ability to create and share articles, presentations and other thought-provoking content.
One of the challenges for these companies is ensuring the advisors meet the standards for social media compliance for financial institutions. Merrill Lynch has estimated roughly half of their advisors utilize their implemented LinkedIn platform, which is completely compliant. As the number of advisors using the platform grows, an increased importance must be placed on compliance.
Present and Future Expectations For Financial Advisors
Merrill Lynch doesn’t necessarily set expectations or standards for its advisors, but it is suggested they interact with current and prospective clients on LinkedIn for at least a few minutes a few days each week. Wells Fargo has estimated more than 3,000 advisors could be actively using its social media program over the next few months.
As the trend of using social media in financial services continues to become more widely accepted, financial advisors will have to adapt to the changing industry. In fact an eMoney executive suggests advisors need to interact with clients more online and become more inclined to work digitally in both the planning and marketing aspects of their jobs.
SocialFinServ understands all the complexities of using social media in the financial advising industry, especially when it comes to social media compliance for financial institutions. Our all-in-one solution can be utilized by both small and large financial institutions to help their advisors become more diligent and efficient with interacting and working with clients. If you’ve been looking for a solution to help get your advisors on board with leveraging social media to gain market share, now is the time to contact us.