During the past 24 months the wealth management industry has seen unprecedented changes in how they have embraced social media as a viable form of marketing and communications. In spite of the high hurdles set by the SEC and FINRA, the wealth industry has emerged showing significant signs of acceptance with the new media.
The procedures for compliance have somewhat standardized, tools have been adopted and more large wirehouse firms and wealth management organizations are moving forward with social media. Here are a few of the industry best practices sharing their story.
Scottrade
Scottrade is using all levels of social media for new business and client service. Their website features a full mobile app section with choices of iPhone, Android, BlackBerry and Mobile trading. https://www.scottrade.com/
In addition, they have harnessed their Facebook page to engage their prospect base with timely, informational content on changing investment/financial planning concepts. They are one of the first firms to use their Facebook page as a legitimate customer service channel. https://www.facebook.com/Scottrade
Their Twitter account features streaming summaries of topical articles and news stories. In addition, they are one of the first companies to utilize Twitter as a customer service channel, answering direct questions via Tweets. https://twitter.com/scottrade
High Tower Advisors
High Tower Advisors took a different approach to explaining how their firm differentiates from brokers with a cheeky video clip that went viral and has over 29,000 viewers.
Balentine
Balentine takes a different approach with their Facebook fans. It shares the more personal side of the company and its employees with clients and prospects, giving them an opportunity to see the firm from a different perspective. http://www.facebook.com/pages/Balentine-The-Art-Science-of-Investing/109250285760841
Their blog is dedicated to focusing on the thought leadership development of the firm by providing their readers designed specifically for their investment interests.
Putnam Investments
Robert Reynolds the CEO of Putnam takes a front stage on their Twitter homepage. By hosting the Twitter page, Mr. Reynolds becomes accessible to the clients and prospects of the firm through a dialog of Tweets. http://twitter.com/PutnamToday/favorites
Many firms are bringing their top executives into the social media engagement simply because that is what their audience wants. No longer is it acceptable for executive management to sit in their ivory towers and learn about their customers through the market research report that reaches their desk. Clients and prospects want to see, hear from and engage with the firm’s management team in order to place their trust with them.
In just a few years the number of firms that have entered the social media space has grown exponentially. Marketing and client engagement has moved from a one-way conversation to a dynamic engagement of prospects, clients and others. However, just as the “Build it and they will come” mentality failed for early adopters of social media, today it is even truer as competition increases on the internet. The success of social media is not in the quantity of fans, followers and contacts you build, but the quality of the engagement that you inspire in your target audience.
There are some clear winning strategies that are also emerging from the industry as we seek to find the right solutions to marketing, client service and new business development in this rapidly evolving culture. Almost 90% of Financial Advisors using social media are working primarily on LinkedIn. By leveraging this incredible business networking tool, Financial Advisors are finding its best value in prospecting, maintaining a book of business and networking on LinkedIn. The tool has made managing a pipeline of prospects more efficient and has opened up geographic boundaries for new business development that have held them back in the past.
Regulatory Requirements
Regulatory concerns still occupy a concern within the industry; however, the SEC has been clear that they view social media much as they do other forms of electronic publication and personal communication. There are rules for what can be done and what cannot be done and they have evolved into a clear set of standards for the industry.
Stationary content such as Facebook pages, LinkedIn profiles and other static content must be reviewed and approved by compliance prior to publishing. Dialog and engagement on Twitter and Facebook is not subject to prior approval but must follow the same strict guidelines as face to face communication has been subject to for years. No investment advice and no testimonials are allowed and all client recommendations should be made offline using the process that you follow for face to face recommendations. Utilizing archiving software to store and document your activity is a standard procedure, just as archiving e-mails is required for client communication.
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