Wealth managers who ignore social media could lose relevance: Celent

By Paul Wilson

ProWEB Wire (Industry News)

Wealth managers who are not developing a social media strategy run the risk of losing relevance, according to a new report from Celent.

The study found that the importance of social media is quickly approaching that of traditional media channels among wealth managers.

"The use of social media among wealth managers provides an opportunity to increase client communication, add touch points, and increase client stickiness,” said study coauthor Isabella Fonseca.

The implementation of successful social media campaigns will also require a close partnership between the marketing departments and compliance departments at large RIAs, the study found.

Researchers cited regulatory clarity as the most important factor in promoting increased social media usage.

In addition, wealth managers will need to contact younger prospective customers through mobile social networks, which can also be used to rebuild trust among jaded investors, the study said.