Asset Management Firm Use of Social Media Still Limited

A new survey of asset management firms finds that 52% don’t use social media, despite a recognition by 84% that social media will have a lasting impact on the financial services sector.

A news release from New York consulting firm kasina about its survey of 48 asset management firms says 39% of firms are on LinkedIn, while between 20% to 25% are on Facebook, Twitter, or YouTube.

The firm asserts that social media gives customers a chance to engage in a dialogue about a company and its offerings.

“In an industry like asset management, where trust is vital, customers are seeking sounding boards, forums, friends, and experts online to validate, challenge, or question,” says Lee Kowarski, kasina principal, and sponsor of the study. “Asset managers who can progressively take advantage of this movement instead of fight it will have a competitive leg up when it comes to customer loyalty and, ultimately, cash flows.”

The kasina report, which also includes the firm’s own secondary research, contends that asset management firms staying off social media are giving up opportunities to:

  • Connect with customers where they are,
  • Research customer needs and preferences,
  • Deliver improved customer service,
  • Manage their brand, and
  • Enhance their reputation of expertise.

A key stumbling block, however: 73% of respondents feel that compliance concerns inhibit their ability to pursue social media, kasina finds.

More information on purchasing a copy of the kasina report is available here.