Thought Leadership in the Wealth Management Industry

Social networks are growing at unprecedented speeds and showing no sign of slowing down. Wealth management firms must address both the opportunities and regulatory issues that surround this high potential source of new business before they step forward.

Nielsen’s online data shows that about half of the U.S. population visited a social network and that number grows every quarter. It is estimated that over 65% of all wealth management advisors are participating in Social Media forums as a way to stay connected to their target audience. As  wealth managers struggle to develop a strategy for defining their presence  in this interactive dialog on the Internet, a comprehensive approach should be taken to make sure that the process is effective, relevant, and in compliance.

Since the social media environment provides several compliance challenges for wealth advisors, many have started to build the important task of becoming Thought Leaders by using their current website to expand their content reach to their target audiences. As their social media policy is developed and extended to include other activities, this process can be extended into other social networking strategies for future growth.

In the past, the only methodology for building a Thought Leadership position with your target audience came from personal engagements, publishing articles and trying to appear on television or radio. Each of these strategies employed a long and arduous process of providing enticements to media outlets in hopes of having your material recognized and published.

Today with the mainstreaming of social media and technology platforms, there are an unlimited number of content sharing avenues that require little or no dependence on media representatives for publishing valuable content for your target audience. Essentially anyone, can create quality content, build a community of their target audience and begin to build a reputation as a valuable partner and Thought Leader to their target audience. The key is to determine what is most relevant and timely to your target audience.

Rethinking Your Value Proposition

As the wealth management field becomes even more competitive, firms will need to answer critical questions in determining their unique value proposition and how to deliver the client experience both digitally and in-person. 


Opportunities to increase revenue in the current economic climate are limited to those wealth managers who understand their clients and determine their relevancy and importance to the client priorities.


Product Leadership


Although a comprehensive and integrated product line offered expanded share of wallet in the past, in today's economic climate a product centric approach to clients fails to address the most significant priorities for many clients. Several years of economic turmoil and unstable equity markets have changed the mindset of clients and requires wealth managers to adapt to those changes.  Today's clients are distrustful, worried, risk-averse and trying to find value in the advisers they hire.  Changing product lines only add to the confusion and
doubt inherent in the client experience.


Redefined Relationship Management 


While most wealth management firms have tried to communicate their commitment to relationship management , many have failed to define that experience according to client's changing values.   Client's
have preferences on issues of communication, product selection, information and credentials and those firms who frequently understand these key issues are the winners in acquiring and maintaining a strong client base.


As technology increases, products proliferate and the economy continues in turmoil, staying close to the changing concerns of the client base are key. The good news is that technology has made keeping the pulse on today's wealth clients even easier with online and offline tools for client feedback.