subject: Financial Services Social Media: Much Ado About Nothing? [print this page] While the rest of the world has just about gone crazy over social media, financial services media may not be joining the fun anytime soon, according to the results of a recent poll by FundFire, which covers the industry.
According to FundFire, their readers have grown more skeptical of how much social media actually benefits advisors or indeed, whether it benefits them at all. They note that fewer readers deem financial services social media a huge boost to advisors business development and client management efforts compared to June 2, 2011, when FundFire last polled readers on social medias impact. More readers now believe financial services social media has no real impact on advisors success. According to FundFire, Securities and Exchange Commission and Financial Industry Regulatory Authority regulators far better grasp of social media topics and what they want from firms also has done little to ease FundFire readers concerns that using financial services social media is risky, comparing the two polls shows.
Of course, we are only in the nascent stages of its development, particularly from the standpoint of Financial Services Social Media programs. This is mostly the result of the fact that the financial services industry is one of the most heavily regulated industries on the planet. However a few firms are venturing forth in the world of financial services social media and they include Morgan Stanley, Wells Fargo and Raymond James.
No one can deny the impact of social media, particularly in the way it has been utilized by consumer goods companies. These companies have discovered the joys of brand building and bonding with their customers in a relatively cost-efficient way when compared with traditional media. The question remains as to whether or not these tactics can be translated into the realm of financial services social media. Maybe yes, maybe no What will be required is additional guidance from the regulatory agencies the SEC and FINRA on the applicable uses of financial services social media.
Will it be worth the hassle? Not sure the record keeping nightmare alone may be a deterrent to the widespread adoption of financial services social media.
