Financial services businesses are becoming increasingly aware of the benefits of using social media. In fact, 60% of financial advisors now get in touch with their clients through social media every day.
As the popularity of social media grows, so the need for confidentiality, compliance and professionalism also come more clearly to the fore. However, with care and planning, financial service providers can use social media to raise their profile and boost their profits.
How Social Media Can Help Financial Services Companies
Social media gives financial services companies a platform on which to showcase their excellence. They can also reach out to customers and learn more about what they want and need.
Those businesses who are making an effort to be more social are seeing dividends, with 54% of advisors who connect daily on social media saying that they’ve found new clients through it. On LinkedIn alone, 32% of financial service providers who used the site regularly saw an increase in assets from new clients of over $1 million.
Social media helps businesses keep in touch with customers and be more responsive to their needs, thus building a stronger customer base.
Helping Customers Make Good Financial Decisions
The reputation of a financial services company rests on their ability to effectively manage their clients’ assets, and give them the most appropriate advice.
For customers looking for financial services, it can be hard to know which company to choose – and many of them are using social media to help them make that decision. Almost two in three mass affluent customers take action having found financial products and services through social media.
In addition, as many as 70% of customers who use social media for finance and investing choose to start or change a relationship with an investment provider as a result of social media.
Financial services companies can use informative content, direct conversations, testimonials or reviews and media such as videos to show their knowledge and trustworthiness, and encourage customers to choose them.
Getting In Touch With Customers’ Needs
Customers are on social media, and frequently use it to talk about what they’re looking for. From conversations to the pages they choose to like, there is a wealth of information out there that companies in the financial sector can use to get a clearer idea of what their customers are looking for.
In fact, financial marketers are now seeing the benefits of digital marketing, with up to 91% believing that making use of data and carefully targeting customers is an effective way to reach their audience.
Social media makes it easier than ever for financial services companies to listen to their customers and let them know that the financial services they want are right there waiting for them.
The Importance of Staying Compliant
Staying compliant with FINRA (Financial Industry Regularity Authority) guidelines is an absolute must for financial industry businesses on social media.
FINRA views electronic communications on a par with traditional paper documents, and those communications are subject to the same rules. In fact, back in 2013 FINRA reported that electronic communications generated the highest amount of fines.
Businesses can stay compliant by drawing up a compliance policy and ensuring that all social media activity meets that. The policy should include guidelines on what is acceptable, a clear chain of command for getting content approved, and a plan for keeping records of all social media content.
Building a library of pre-approved content for sharing can reduce stress and make sure everything that gets sent is compliant.
Businesses will find that so long as they take steps to keep their social media FINRA compliant, it will give them access to good leads and a platform for showing customers why their business is the best choice.