As social media becomes an increasingly hot topic in the financial industry, there are 4 recurring hurdles that I constantly read and hear about. Given the reality that social media is here to stay; I want to offer thorough and actionable remedies to these social hiccups.
#4 I don’t think it’s an effective tool for reaching my audience: This may seem like legitimate concern; however, there are a few things to consider as social media continues to develop.
Young High-Net Worth (HNW) Individuals: A recent study from the Federal Reserve’s Board of Consumer Finances claims that “high net worth individuals under the age of 50 hold 28% of the US wealth across all asset classes”. It goes without question that these waves of young HNW individuals are accustomed and comfortable with new social technologies. A 2011 Spectrum Group Study also reveals that “younger investors are likely to view a financial advisor in a negative light if he/she does not have a social media presence”. Knowing this, it is important to anticipate a growth in young HNW individuals and a widespread transfer of wealth from baby boomers to the more tech savvy Gen X and Gen Y.
Investors Exchange Information Online: Apart from a way to exchange information, social media is increasingly influencing investors’ decisions. According to the Cisco IBSG report (2011), investors exchange information and guide each other on blogs and message boards. Furthermore, many young HNW individuals use social media channels to converse about investment decisions.
The percentage of baby boomers using social media is consistently growing: According to a study from the Pew Internet & American Life Project, the use of social networkers by people ages 50+ has grown over 40% in the past 7 years. This illustrates that the older generations are slowly (but surely) adopting and using social media. AARP also cites that in the United States, there is an estimated 270 million internet users and one third of them are from the baby boomer generation — which means you’re looking at more than 80 million baby boomers that are using social media.
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