Social Media and its Impact on Wealth Management

The evolution of social media has changed the way we behave, interact and the way we do business. Even financial institutions have started to increase their involvement in the digital media space despite the complex governance and regulations that they face. Bank of America, Chase, Wells Fargo and American Express are just a few of the companies that have made the “Top 10 Apps – Finance” list in the iTunes Store.
Unique solutions are constantly being developed across all industries, including Wealth Management, to provide highly relevant content to their communities (client segments) which will allow them to build relationships and have more continuous dialogue with their clients, potential clients and the industry.  Citibank and LinkedIn have partnered to create the Connect Professional Women Network, Merrill Lynch has launched its own Flipboard channel, and UBS has a variety of apps that provide information from financial research to price & earnings information.

Companies are listening to the conversations that take place in social media and monitoring how their communities react to and engage with the content they produce. Through this process, they are able to learn more about the needs within a segment and if a sub-segment is required.  For example, a company might see that their Twitter followers respond well to retirement savings content.  It might also listen to existing conversations in the social space and discover that family planning is highly relevant. With this new information, the firm can segment these two groups that are in different life stages, income brackets, and have different interests, and produce content that specifically meets each of their needs.

This information will also enable the firm to create content and platform strategies to most effectively reach and engage with the various client segments. These strategies will allow them to effectively target their audiences and maximize the impact of their messages. For example, this company can distribute retirement content through Twitter and identify other platforms where family planning is commonly discussed.  They can host videos for both audiences on YouTube, but use different content and platforms to drive the different segments to watch. The firm could also create budgeting app to assist those with family planning needs. In order to have a positive impact in social media, we need to listen to our communities. We need to understand who they are and what they want, so that we can deliver highly relevant content and programs. So, develop a social media strategy and always analyze, adapt, and improve it. If you don’t, you’ll find that your competitors will.

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