Social Media and Financial Services: The Time is Now November 5, 2008

Agenda State of Financial Services & Social Media Case Studies Recommendations Q&A/Panel Discussion

State of Financial Services & Social Media

Case Studies

Recommendations

Q&A/Panel Discussion

Quiz Time!

What is Social Media?

What is Social Media?

Survey Says… Do you know if your company has any initiatives planned regarding social media?

Survey Says… Do you think that this is an area your firm should be considering?

Survey Says… Do you see social media as an important component to your marketing strategy?

Survey Says… What areas of social media is your firm/department considering?

Why bother? We have a large initiative to grow our Gen Y demographics. We must change our strategies as the habits of future customers evolve. It is the next big thing in financial services. It will only become more prevalent, especially as the younger crowd begins to mature and start working with the financial services industry. Because all the kids are doing it!

Adoption of Social Media by Age Group Source: Forrester Research

State of the Industry Reviewed 70 sites across brokerage, banking, cards, annuities, and mutual funds 22% had some form of social media Brokerage firms most active Banking/Cards focus on small business Annuities & Funds show little adoption Notable exceptions (AXA, TIAA, T Rowe, Thrasher) Third party sites competitive threat to FS firms

Reviewed 70 sites across brokerage, banking, cards, annuities, and mutual funds

22% had some form of social media

Brokerage firms most active

Banking/Cards focus on small business

Annuities & Funds show little adoption

Notable exceptions (AXA, TIAA, T Rowe, Thrasher)

Third party sites competitive threat to FS firms

Use of Social Media

Brokerage

Banking/Cards

Annuities X

Mutual Funds

Third Party Sites

Case Studies

AXA MyRetirementShop.com

AXA MyRetirementShop Blog

AXA What it did right: Knew target audience Conducted research on retirees and web habits Why it failed: Incongruous with target audience (55+ group not creators) Didn’t proactively post Compete with AARP Significant barriers to participation

What it did right:

Knew target audience

Conducted research on retirees and web habits

Why it failed:

Incongruous with target audience (55+ group not creators)

Didn’t proactively post

Compete with AARP

Significant barriers to participation

Thrasher Funds

Thrasher Funds What it did right: Seems to have right idea about tapping into GenX Includes many social media & multi elements Why it misses the mark: Has many aspects of SM, but poorly executed Blog posts are not updated frequently Tries to be too many things – social commentator, fashion commentator, and market commentator

What it did right:

Seems to have right idea about tapping into GenX

Includes many social media & multi elements

Why it misses the mark:

Has many aspects of SM, but poorly executed

Blog posts are not updated frequently

Tries to be too many things – social commentator, fashion commentator, and market commentator

Zecco

Zecco Community Tools Member Profiles Member Search Groups

Zecco Community Tools Performance Scanner

Zecco Community Tools Forums Blogs

Zecco on YouTube

Zecco: All atwitter

Zecco What it does right: Open membership Built a base Establishes credibility Community advocates Utilizes many social media tools Zecco Zirens! Minor Shortcomings Full list of blogs difficult to locate Member activity ranking not described in detail

What it does right:

Open membership

Built a base

Establishes credibility

Community advocates

Utilizes many social media tools

Zecco Zirens!

Minor Shortcomings

Full list of blogs difficult to locate

Member activity ranking not described in detail

What’s a financial firm to do?

High Level Recommendations Begin by listening Don’t neglect your customer website Know your audience Don’t be afraid to start small Pre-test Monitor your brand “ Field of Dreams” strategy won’t work

Begin by listening

Don’t neglect your customer website

Know your audience

Don’t be afraid to start small

Pre-test

Monitor your brand

“ Field of Dreams” strategy won’t work

Final Thoughts Should you be here? Yes! Good news is train hasn’t left the station but the cars are beginning to fill up. If you don’t, your competition is going to be doing it. To do this successfully, you will have to figure out how to work with compliance. Your competition in 5 years might be from left field.

Should you be here? Yes!

Good news is train hasn’t left the station but the cars are beginning to fill up.

If you don’t, your competition is going to be doing it.

To do this successfully, you will have to figure out how to work with compliance.

Your competition in 5 years might be from left field.

Thank you. Michael Ellison Executive Vice President [email_address] (212) 832-2002 ext. 106 www.linkedin.com/in/michaelellison www.corporateinsight.com www.cinsightblog.com