Financial Social Media: Hype of Help?

As the world eagerly awaits the Facebook IPO, one has to wonder if we have reached the epitome of the social media craze… or should that be phenomenon?

Clearly, social media has changed the course of human interaction and has forever altered the way many industries communicate with their customers and clients, most notably those engaged in the business of providing consumer products. How about financial social media programs? Have they helped generate new clients and additional commissions?

Financial social media has been relatively slow to take off vis-à -vis other industries. This is most likely the result of the regulations that govern solicitations and interactions between an institutional and its clients. However, some firms have used financial social media programs as a way to promote their organizations or company’s mission and messages. It might not be essential for a firm to be present on all social media platforms; however, managers should adopt some as a means of customer interaction and acquisition. Let’s take a look at a few that might be relevant in a financial social media program:

*Blogs: Having a blog is like having a more personalized website. This can provide your audience with thought leadership and expert insight on matters relevant to the financial industry. Financial companies and organizations might consider having a CEO blog, company blog and/or internal blog.

*LinkedIn: Financial companies and organizations should encourage their employees to have LinkedIn profiles and follow the company or organization. It is important for employees to have up-to-date profiles and to be relevant contributors.

*Twitter: Having multiple accounts for financial social media via Twitter can be extremely beneficial. Consider having one main company or organizatio
Twitter account and then one that is designed specifically to handle any customer service questions. When setting up this customer service account remember that your audience will be most receptive to using the account if they feel like there is an actual person handling and responding to their questions. You may also consider having numerous Twitter accounts for the different sector or practice areas.

The three aforementioned social media vehicles are perhaps the most useful for firms considering undertaking a financial social media program; however there are others to consider, which might be as a effective:

*Facebook: This is the one social media platform, where having one account is likely the best route for financial companies and organizations. However, if it is a large financial company with many different sectors and practice areas, you could consider having a separate Facebook page for each of those. This helps get the most relevant information to your audience. For example, a national bank might have different Facebook pages for each sector of their bank.

*YouTube: Multiple YouTube channels can be used a variety of ways. Perhaps you have a YouTube channel that specifically has demonstration videos or how-to videos, and another YouTube channel that provides commentary from experts from your company or organization. You might also have a YouTube channel that encourages subscribers to upload their own videos for a contest or other promotion.

Finally, given the ever-changing rules that govern the financial services industry, it is a good idea to work closely with your firm’s compliance department as you undertake a financial social media program.
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