Social media is becoming a common communication vehicle in the financial services industry. A recent report by LIMRA shows that 83 percent of all financial professionals are using social media compared to just two years ago when only 72 percent of young advisors were using social1. Additionally, about two-thirds are currently receiving support.
Financial professionals find social media helps them to market themselves, research prospects and build relationships. Eighty-eight percent of those aggressively looking for new clients are using social media, compared to 62 percent of those less actively seeking new clients. The most popular platform for both groups of financial professionals is LinkedIn.
While social media has opened new opportunities for financial professionals to connect with their clients and prospective clients, there have been some challenges integrating it. Compliance requirements present challenges for those who want to use it effectively because there are often limits as to what financial professionals can say on social media, or delays waiting for compliance to approve posts.
Over the past couple of years, social media has evolved for financial professionals from being something new to try out to now seeing its value and trying to find their niche use for it. Advisors are looking for a nuanced approach that allows them to use social media as a part of their business practice for marketing, information and communication. At the same time, they want support to help them seamlessly integrate social into their practice.
These findings are from a survey of 650 financial professionals under the age of 65 in March 2016. Nearly half of the responses are from financial professionals aged 40 and younger. For more information on this topic, LIMRA members can read Evolving Social Media: Financial Professionals’ Use of Technology.
1 Young Advisor Snapshot, LIMRA (2015)