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2014
Individual Investors
Social Media Behavior Report
We all know about the increasing number of
individual investors using social media to
engage with their advisors: more than a one-
third[1] of financial advisors now use social
media for business purposes.
But do you know what kind of social media
presence and behaviors are actually
important to investors? Simply creating an
online profile is not enough to generate value.
In this study, we survey individual investors to
learn what they want to view on their advisors’
social media feeds and what kind of social
media behaviors will affect investors’ decisions
to choose advisors.
We hope this study will provide clear guidelines
to financial advisors who are on social media
but are still not clear about how to use and
leverage it.
[1] Source: FTI Consulting: Financial Advisors’ Use of Social Media Moves from Early Adoption to Mainstream!
• Nearly half of investors want to connect with their advisors on social
media but cannot find them or conclude their advisors are not on social
media
• Investors age 44 or younger are more likely to connect with their
advisors on social media compared to those over 45
• Emerging Affluent investors[2] use social media more than mainstream
and high net worth investors
• Investors who connect with their advisors on social media tend to be
satisfied with the level of access to their advisors
• Female investors are 11.5% more likely to connect with their advisors on
social media than male investors
• Investors do not care about their advisors’ personal life details on social
media
• The MOST important social media interaction with advisors, according
to investors, is sharing trending investments or personal finance news
• An advisor’s number of social media followers is the LEAST important
feature for investors when choosing advisors through social media
• An advisor’s availability to answer questions is the MOST important
feature for investors when choosing advisors through social media
KEY FINDINGS
[2] Emerging Affluent investors: Total value of investment between $100,000 - $999,999!
87%	
  of	
  investors	
  surveyed	
  
are	
  using	
  social	
  media
Among investors who are not use social
media, 46%	
  of them would be more
likely to use if they could communicate
in real-time with a financial advisor.
Meanwhile, 54% of them would not or
are not sure.
Q: Are you using social media?
Note: Social media platforms are part of our survey delivery channels, so this may generate some bias
Yes
87%
No
13%
Only	
  25.5%	
  of	
  investors	
  connect	
  with	
  their	
  advisors	
  
through	
  social	
  media
Q: Do you connect with your
advisor on social media in any
form?
Note: All investors here are using social media and have advisors
Yes,%
25.50%
No,%
74.50%
Nearly	
  half	
  of	
  investors	
  want	
  to	
  connect	
  with	
  their	
  
advisors	
  on	
  social	
  media	
  but	
  cannot	
  find	
  them	
  or	
  figure	
  they	
  are	
  
not	
  on	
  social	
  media
Q: Why do you NOT connect with your
advisor(s) on social media?
49%
However, 38% of investors don’t find it
meaningful or relevant to connect with advisors on
social media.
Note: All investors here are using social media and have advisors
Others
13%
I,don’t,find,it,
relevant,or,
meaningful
38%
My,advisor,is,
not,using,
social,media
22%
I,cannot,find,
my,advisor,
on,social,
media
27%
Other	
  reasons	
   Q: Why do you NOT connect with your
advisor(s) on social media?
(45-­‐54	
  female)	
  
I	
  feel	
  contact	
  through	
  
email	
  or	
  phone	
  is	
  safer	
  
Don't	
  use	
  social	
  media	
  for	
  
my	
  inves?ng	
  
(55-­‐64	
  female	
  )
I	
  don’t	
  use	
  social	
  
media	
  for	
  money	
  or	
  
business	
  decision
(55-­‐64	
  male	
  )
He	
  hasn't	
  reached	
  out	
  to	
  
me	
  and	
  it	
  hasn't	
  occurred	
  
to	
  me	
  to	
  reach	
  out	
  to	
  him	
  
on	
  social	
  media	
  
(65-­‐older	
  female	
  )
I	
  let	
  my	
  advisor	
  manage	
  
with	
  a	
  long	
  term	
  focus	
  -­‐	
  I	
  
email	
  when	
  need	
  to	
  but	
  
otherwise	
  don't	
  connect.	
  
(45-­‐54	
  female	
  )
I	
  call	
  him	
  directly	
  
(35-­‐44	
  male	
  )
Note: All investors here are using social media and have advisors
80.91%
93.48%
19%
6.52%
Yes No
Female	
  investors	
  use	
  social	
  media	
  
more	
  than	
  male	
  investors	
  
Q: Are you using social media?
Q: Do you connect with your
advisor on social media in any
form?
YES
32.3% 20.8%
Note: All investors here are using social media and have advisors
Female!investors!are!more!likely!than!men!to!connect!
with!their!advisors!on!social!media!–!11.5%*more*ac.ve*
Very%
Dissa*sfied
Dissa*sfied
 Somewhat%
Dissa*sfied
Somewhat%
Sa*sfied
Sa*sfied
 Very%Sa*sfied
Investors	
  connec?ng	
  with	
  advisors	
  on	
  social	
  media	
  tend	
  to	
  be	
  
sa3sfied	
  with	
  the	
  level	
  of	
  access	
  to	
  their	
  advisors	
  through	
  
that	
  plaForms	
  (63.6%)
Q: Are you satisfied with the level of access to your advisor through
social media?
MEAN
0%
18.2% 18.2%
22.7%
27.3%
13.6%
under&25
 25*34
 34*44
 45*54
 55*65
 65&or&
older
Yes
 No
Investors	
  age	
  44	
  or	
  younger	
  are	
  more	
  likely	
  to	
  
connect	
  with	
  their	
  advisors	
  on	
  social	
  media	
  compared	
  
to	
  those	
  over	
  45
Millennial investors (born after 1980 ) have
the highest social media usage rate (96.6%)
 
%
Q: Do you connect with your advisor on social
media in any form?
Note: All investors here are using social media and have advisors
0%50% 30.8% 40% 4.5% 25%
Mainstream
 Emerging-Affluent
 High-Net4Worth
Yes
 No
Emerging	
  affluent	
  investors	
  are	
  more	
  likely	
  to	
  
connect	
  with	
  their	
  advisors	
  on	
  social	
  media	
  compared	
  to	
  
others
Q: Do you connect with your advisor on social
media in any form?
20% 28% 26%
Mainstream Less than $100,000
Emerging Affluent $100,000 - $999,999
High Net-Worth More than $999,999
Definition Total value of investment
Note: All investors here are using social media and have advisors
Emerging Affluent also have the
highest social media usage rates!
!Q: Are you using social media?!
High%Net)Worth

Emerging%Affluent
Mainstream
Yes$
88.60%&
90.22%&
77.78%&
Investors	
  don’t	
  care	
  about	
  their	
  advisor’s	
  personal	
  
life	
  details	
  on	
  social	
  media	
    
78% of investors who connect with their
advisors on social media stated that their
advisors’ personal life detail on social media
are not at all important.
We asked this question because sometimes
advisors cannot distinguish between having
personal interactions and sharing their
personal life on social media. Examples of
personal interactions include sharing opinions,
showing emotion and personality, and/or
taking interest in another person’s well-being.
However, this do not mean one needs to share
details of their personal life, such as travel
photos and new baby. In truth, investors don’t
care about those things at all.
Therefore, we suggest you separate your
personal social accounts from your business
accounts. Tips here.
 
Q. How would you like to communicate with your
advisor on social media? Rate their importance
Note: Results from above are all from investors who are connected with their advisors on social media.
78%
Not$at$all$
important
Slightly$
important
Moderately$
important
Very$important
 Extremely$
important
Highlights$from$his/her$personal$life
The	
  most	
  important	
  interac?ons	
  that	
  maNer	
  
to	
  investors	
  on	
  social	
  media
 
	
  
	
  	
  
	
  
	
  
	
  
Trending	
  investment	
  or	
  personal	
  financial	
  news/topics	
  advisor	
  has	
  shared	
  
Educa?onal	
  ar?cles	
  &	
  research	
  advisor	
  has	
  shared	
  
Instant	
  access	
  to	
  research,	
  white	
  papers,	
  videos	
  he/she	
  recommends
Updates	
  on	
  my	
  investments
Ar?cles	
  and	
  research	
  the	
  advisor	
  has	
  wriHen
Types	
  of	
  investments	
  used	
  for	
  current	
  clients
Real-­‐?me	
  answers	
  to	
  my	
  ques?ons
A	
  private	
  “room”	
  online	
  to	
  discuss	
  topics	
  with	
  other	
  clients	
  or	
  peers
Types	
  of	
  investments	
  he/she	
  is	
  considering	
  or	
  monitoring
Note: Results from above are all from investors who are connected with their advisors on social media.
Note: detail in following pages
1.	
  
2.	
  
3.	
  
Rank
4.	
  
5.	
  
6.	
  
7.	
  
8.	
  
9.	
  
 
Other items investors told Finect that they do not want to view on their
advisor’s social media timeline include:
• “Promotion/sale pitch”
• “Personal discussion /chats/personal crap”
Note: Some investors stated that personal info on an advisor’s Facebook profiles is
acceptable but not on his/her professional social media accounts
The	
  least	
  important	
  interac?ons	
  with	
  advisors	
  on	
  
social	
  media	
  
Highlights	
  from	
  his/her	
  personal	
  life.	
  Example:	
  travel	
  photos
Share	
  Interes?ng	
  topics	
  not	
  related	
  to	
  finance.	
  Ex:	
  amusing	
  YouTube	
  
videos
Online	
  events	
  with	
  my	
  advisor	
  and	
  other	
  clients
Business	
  informa?on	
  such	
  as	
  fee	
  structure,	
  offices,	
  special	
  exper?se
Note: Results from above are all from investors who are connected with their advisors on social media.
Note: detail in following pages
Rank
Point:	
  
Not	
  at	
  all	
  important	
  =	
  -­‐2
Slightly	
  important	
  =	
  -­‐1
Moderately	
  important	
  =	
  0
Very	
  important	
  =	
  1
Extremely	
  important	
  =	
  2	
  
Q:	
  How	
  would	
  you	
  like	
  to	
  communicate	
  with	
  your	
  advisor	
  
on	
  social	
  media?	
  Rate	
  their	
  importance	
  
Note: Results from above are all from investors who are connected with their advisors on social media.
Point
Statistical significance
according to one-way
ANOVA block design
Statistical significance
according to one-way
ANOVA block design
!35$ !30$ !25$ !20$ !15$ !10$ !5$ 0$ 5$ 10$ 15$ 20$
Highlights(from(his/her(personal(life.(Example:(travel(photos
Interes9ng(topics(not(related(to(finance.(Example:(Sharing(amusing(
YouTube(videos
Online(events(with(my(advisor(and(other(clients
Business(informa9on(such(as(fee(structure,(offices,(special(exper9se
Types(of(investments(he(is(considering(or(monitoring
A(private(“room”(online(to(discuss(topics(with(other(clients(or(peers
RealL9me(answers(to(my(ques9ons
Types(of(investments(used(for(current(clients
Ar9cles(and(research(the(advisor(has(wriNen
Updates(on(my(investments
Instant(access(to(research,(white(papers,(videos(he/she(recommends
Educa9onal(ar9cles(and(research(the(advisor(has(shared(with(others
Trending(investment(or(personal(financial(news/topics
 TOP	
  5	
  social	
  media	
  features	
  investors	
  prefer	
  when	
  
choosing	
  advisors
1.	
   The	
  advisor’s	
  availability	
  
to	
  answer	
  ques?ons
Qs
A
2.	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  The	
  quality	
  of	
  financial	
  
resources	
  advisors	
  shares	
  
online
3.	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  The	
  level	
  of	
  knowledge	
  in	
  the	
  
advisor’s	
  ar?cles/blogs/posts
The	
  tone/manner	
  in	
  which	
  
they	
  engage
4.	
   The	
  advisor’s	
  online	
  profile	
  informa?on	
  such	
  
as	
  professional	
  licenses,	
  educa?on	
  and	
  
experience
5.	
  
Note: detail in following pages
 Least	
  important	
  social	
  media	
  features	
  when	
  
choosing	
  an	
  advisor
The	
  number	
  of	
  
advisor’s	
  followers
The	
  frequency	
  of	
  advisor’s	
  
own	
  arHcles/blogs/posts
How	
  fast	
  advisor	
  responds/
replies	
  via	
  social	
  media
Note: While these features are the least important to investors, one should not conclude investors place no importance on them.
“Quality	
  >	
  Quan3ty.”
Note: detail in following pages
Q:	
  How	
  important	
  are	
  the	
  following	
  social	
  media	
  features	
  
when	
  choosing	
  an	
  advisor?
Point:	
  
Not	
  at	
  all	
  important	
  =	
  -­‐2
Slightly	
  important	
  =	
  -­‐1
Moderately	
  important	
  =	
  0
Very	
  important	
  =	
  1
Extremely	
  important	
  =	
  2	
  
Point
Statistical significance
according to one-way
ANOVA block design
!150% !100% !50% 0% 50% 100% 150%
The$number$of$his/her$followers
The$frequency$of$his/her$own$ar6cles/blogs/posts
How$fast$they$respond/reply$via$social$media
The$advisor’s$online$profile$informa6on$such$as$
professional$licenses,$educa6on$and$experience
The$tone/manner$in$which$they$engage
The$level$of$knowledge$in$the$advisor’s$ar6cles/blogs/
posts
The$quality$of$financial$resources$he/she$shares$online
The$advisor’s$availability$to$answer$ques6ons
1. Investment performance:
 
• “I would like to have access to all the
performance data of the accounts they control,
up to date and complete.” (35-44 male) 
• “The most important thing is for the advisor to
disclose his/her own portfolio results and/or
credit score (FICO).” (35-44 male)
• “Proof! Ability of their picks to outperform the
market. Individuals are better than an advisor
can outperform the market - net fees. So just
show us.” (25-34 male)
• “Validating their performance and client
results.” (25-34 male)
• “I'd like to see a posting of the ROI performance
of their advice on a rolling quarterly basis. They
could create a model investment program and
make it public. Talk about transparency and
believability! Better yet, post their personal
portfolio of investments showing the return.” (65
or older male)
• “Track record.” (45-54 male)
• “Previous financial acumen w/ clients.” (45-54
male)
Addi?onal	
  behavior	
  or	
  feature	
  that	
  affect	
  investor’s	
  decision	
  when	
  
choosing	
  an	
  advisor	
  (both	
  online	
  &	
  offline)
2. Recommendation:
 
• “I prefer to be recommended by someone I trust to
an adviser.” (25-34 male)
• “If others are forwarding or liking their social
media posts.” (45-54 female)
• “Recommendation from friend or
colleague.” (35-44 male)
• “Prior relationship with someone I trust.” (65 or
older female)
• “Endorsements from others.” (35-44 male)
• “Offline reputation - I'd need a referral or
recommendation from a person I know in real
life.” (35-44 male)
Note: Testimonial and endorsement on social media might violate compliance regulations
3. Customer experience:  
• “Excellent Customer Experience.” (35-44 female)
• “Patience, all due diligence on them is very
important.” (45-54 female)
4. Reputation:
• “Respect / following by other industry authorities
(Warren Buffet types, VCs, etc.).” (45-54 male)
 
• “Who follows him or her on social media.” (25- 34
male)
  
• “Appearance. I would choose someone who looks
successful, up to date on trends, and attractive over
someone who is not.” (25-35 female)
• “Online reviews.” (25- 34 male)
• “I want someone who shares beyond the obvious, and
does not always follow the herd.” (45-54 male)
Addi?onal	
  behavior	
  or	
  feature	
  that	
  affect	
  investor’s	
  decision	
  when	
  
choosing	
  an	
  advisor	
  (both	
  online	
  &	
  offline)
5. Services:
 
• “Fee disclosure on products.” (35-44 male)
 
6. Content that shows knowledge level:
 
• “Other subjects that he writes/blogs/shares.”
(35-44 female)
 
• “Relevant and substantive content.” (55-64 male)
7. Credibility:
 
• “FINRA status.” (55-64 female)
• “Years of experience.” (25-34 male)
• “Credentials and validation.” (45-54 male)
• “Education credentials.” (25-34 female)
• “Higher Education.” (45-54 male)
• “How is the advisor authenticated as an advisor?
Identity theft risk is kind of high there.” (35-44
female)
8. Other communication approaches:
 
• “Moderate availability to use Face Time and/or
Skype to interact during financial meetings to target
goals and discuss strategy and structure.”
(25-34 male)
• “Sharing relevant information - e.g. info and advice
that goes into further detail on your investments,
often nice if shared in video format because it's
easier to digest.” (35-44 female)
 
9. Privacy:
 
• “Privacy is key so prefer not to have too much made
public by my advisor.” (45-54 female)
• “Whether I'd want them seeing my personal profile.
(on social media)” (25-34 male)
• “I prefer that I can't be identified as a client of the
advisors. (on social media)” (25-34 male)
 
Addi?onal	
  behavior	
  or	
  feature	
  that	
  affect	
  an	
  investor’s	
  decision	
  when	
  
choosing	
  an	
  advisor	
  (both	
  online	
  &	
  offline)
10. Don’t believe is necessary on social media:
• “None. I feel like financial advisors should be more
concerned w/ managing clients' money, instead of
soliciting/marketing on social media.” (35-44 male)
• “I don't think social media would cause me to choose
an advisor. I'd need a lot more information,
particularly about past returns & their overall
process.” (25-34 male)
• “I wouldn't choose one through social media. I chose
mine through research and don't care that they are not
online much - we connect via email.” (45-54 female)
• “I would not choose an advisor through social media.
I might use social media to identify potential
advisors.” (45-54 male)
• “I am unlikely to choose an advisor through social
media. I would like to become an advisor, but early in
my journey.” (45-54 male)
Addi?onal	
  behavior	
  or	
  feature	
  that	
  affect	
  investor’s	
  decision	
  when	
  
choosing	
  an	
  advisor	
  (both	
  online	
  &	
  offline)
I	
  would	
  not	
  choose	
  an	
  
advisor	
  through	
  social	
  
media.	
  I	
  might	
  use	
  social	
  
media	
  to	
  iden3fy	
  
poten3al	
  advisors.	
  
(45-­‐54	
  	
  male)
I	
  would	
  base	
  the	
  decision	
  
off	
  a	
  referral	
  and	
  my	
  
interview.	
  Social	
  Media	
  
would	
  be	
  a	
  way	
  to	
  gain	
  a	
  
picture	
  of	
  the	
  individual.
(35-­‐44	
  male)
Addi?onal	
  behavior	
  or	
  feature	
  that	
  affect	
  investor’s	
  decision	
  when	
  
choosing	
  an	
  advisor	
  (both	
  online	
  &	
  offline)
 
Other information from investors:
 
• “LinkedIn’s company website and blog are all
useful but not sufficient for money
decision.” (55-64 male)
• “Twitter & Linked are important. Facebook is
not.” (45-54 male)
 
• “I would base the decision off a referral and
my interview. Social Media would be a way
to gain a picture of the individual.” (35-44
male)
ABOUT OUR RESPONDENTS
Survey duration (3 months):
Total respondents:
232
Completed rate:
80%
Gender:Total value of investment:
71%
29%
25% 25%
50%
Mainstream
Emerging Affluent
High Net-Worth
Currently investment products:
75#
149#
126#
77#
26#
27#
27#
87#
44#
136#
13#
Bonds!
Stocks!
Mutual Funds!
ETFs!
Commodities!
Hedge funds/alternative!
Futures and options!
Real estate!
College savings!
Retirement savings/accounts!
Impact/other thematic investing!
ABOUT OUR RESPONDENTS
Geographic:
Using social media:
Age range:
Individual
investors
invest in US
Author: Yi-Hsuan Chen, Passionate Marketer in the Financial
Industry and the Marketing Manager of Finect. She received the
Advanced Business Certificate (ABC) in Marketing Intelligence
during her MBA in the University of Connecticut.
Contact: Sherry.chen@finect.com
< 25! 25-34! 35-44! 45-54! 55-64! > 64 !
Yes,
87%
No,
13%
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and simple way
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Individual Investors Social Media Behavior Report

  • 2. We all know about the increasing number of individual investors using social media to engage with their advisors: more than a one- third[1] of financial advisors now use social media for business purposes. But do you know what kind of social media presence and behaviors are actually important to investors? Simply creating an online profile is not enough to generate value. In this study, we survey individual investors to learn what they want to view on their advisors’ social media feeds and what kind of social media behaviors will affect investors’ decisions to choose advisors. We hope this study will provide clear guidelines to financial advisors who are on social media but are still not clear about how to use and leverage it. [1] Source: FTI Consulting: Financial Advisors’ Use of Social Media Moves from Early Adoption to Mainstream!
  • 3. • Nearly half of investors want to connect with their advisors on social media but cannot find them or conclude their advisors are not on social media • Investors age 44 or younger are more likely to connect with their advisors on social media compared to those over 45 • Emerging Affluent investors[2] use social media more than mainstream and high net worth investors • Investors who connect with their advisors on social media tend to be satisfied with the level of access to their advisors • Female investors are 11.5% more likely to connect with their advisors on social media than male investors • Investors do not care about their advisors’ personal life details on social media • The MOST important social media interaction with advisors, according to investors, is sharing trending investments or personal finance news • An advisor’s number of social media followers is the LEAST important feature for investors when choosing advisors through social media • An advisor’s availability to answer questions is the MOST important feature for investors when choosing advisors through social media KEY FINDINGS [2] Emerging Affluent investors: Total value of investment between $100,000 - $999,999!
  • 4. 87%  of  investors  surveyed   are  using  social  media Among investors who are not use social media, 46%  of them would be more likely to use if they could communicate in real-time with a financial advisor. Meanwhile, 54% of them would not or are not sure. Q: Are you using social media? Note: Social media platforms are part of our survey delivery channels, so this may generate some bias Yes 87% No 13%
  • 5. Only  25.5%  of  investors  connect  with  their  advisors   through  social  media Q: Do you connect with your advisor on social media in any form? Note: All investors here are using social media and have advisors Yes,% 25.50% No,% 74.50%
  • 6. Nearly  half  of  investors  want  to  connect  with  their   advisors  on  social  media  but  cannot  find  them  or  figure  they  are   not  on  social  media Q: Why do you NOT connect with your advisor(s) on social media? 49% However, 38% of investors don’t find it meaningful or relevant to connect with advisors on social media. Note: All investors here are using social media and have advisors Others 13% I,don’t,find,it, relevant,or, meaningful 38% My,advisor,is, not,using, social,media 22% I,cannot,find, my,advisor, on,social, media 27%
  • 7. Other  reasons   Q: Why do you NOT connect with your advisor(s) on social media? (45-­‐54  female)   I  feel  contact  through   email  or  phone  is  safer   Don't  use  social  media  for   my  inves?ng   (55-­‐64  female  ) I  don’t  use  social   media  for  money  or   business  decision (55-­‐64  male  ) He  hasn't  reached  out  to   me  and  it  hasn't  occurred   to  me  to  reach  out  to  him   on  social  media   (65-­‐older  female  ) I  let  my  advisor  manage   with  a  long  term  focus  -­‐  I   email  when  need  to  but   otherwise  don't  connect.   (45-­‐54  female  ) I  call  him  directly   (35-­‐44  male  ) Note: All investors here are using social media and have advisors
  • 8. 80.91% 93.48% 19% 6.52% Yes No Female  investors  use  social  media   more  than  male  investors   Q: Are you using social media?
  • 9. Q: Do you connect with your advisor on social media in any form? YES 32.3% 20.8% Note: All investors here are using social media and have advisors Female!investors!are!more!likely!than!men!to!connect! with!their!advisors!on!social!media!–!11.5%*more*ac.ve*
  • 10. Very% Dissa*sfied Dissa*sfied Somewhat% Dissa*sfied Somewhat% Sa*sfied Sa*sfied Very%Sa*sfied Investors  connec?ng  with  advisors  on  social  media  tend  to  be   sa3sfied  with  the  level  of  access  to  their  advisors  through   that  plaForms  (63.6%) Q: Are you satisfied with the level of access to your advisor through social media? MEAN 0% 18.2% 18.2% 22.7% 27.3% 13.6%
  • 11. under&25 25*34 34*44 45*54 55*65 65&or& older Yes No Investors  age  44  or  younger  are  more  likely  to   connect  with  their  advisors  on  social  media  compared   to  those  over  45 Millennial investors (born after 1980 ) have the highest social media usage rate (96.6%)   % Q: Do you connect with your advisor on social media in any form? Note: All investors here are using social media and have advisors 0%50% 30.8% 40% 4.5% 25%
  • 12. Mainstream Emerging-Affluent High-Net4Worth Yes No Emerging  affluent  investors  are  more  likely  to   connect  with  their  advisors  on  social  media  compared  to   others Q: Do you connect with your advisor on social media in any form? 20% 28% 26% Mainstream Less than $100,000 Emerging Affluent $100,000 - $999,999 High Net-Worth More than $999,999 Definition Total value of investment Note: All investors here are using social media and have advisors Emerging Affluent also have the highest social media usage rates! !Q: Are you using social media?! High%Net)Worth Emerging%Affluent Mainstream Yes$ 88.60%& 90.22%& 77.78%&
  • 13. Investors  don’t  care  about  their  advisor’s  personal   life  details  on  social  media     78% of investors who connect with their advisors on social media stated that their advisors’ personal life detail on social media are not at all important. We asked this question because sometimes advisors cannot distinguish between having personal interactions and sharing their personal life on social media. Examples of personal interactions include sharing opinions, showing emotion and personality, and/or taking interest in another person’s well-being. However, this do not mean one needs to share details of their personal life, such as travel photos and new baby. In truth, investors don’t care about those things at all. Therefore, we suggest you separate your personal social accounts from your business accounts. Tips here.   Q. How would you like to communicate with your advisor on social media? Rate their importance Note: Results from above are all from investors who are connected with their advisors on social media. 78% Not$at$all$ important Slightly$ important Moderately$ important Very$important Extremely$ important Highlights$from$his/her$personal$life
  • 14. The  most  important  interac?ons  that  maNer   to  investors  on  social  media               Trending  investment  or  personal  financial  news/topics  advisor  has  shared   Educa?onal  ar?cles  &  research  advisor  has  shared   Instant  access  to  research,  white  papers,  videos  he/she  recommends Updates  on  my  investments Ar?cles  and  research  the  advisor  has  wriHen Types  of  investments  used  for  current  clients Real-­‐?me  answers  to  my  ques?ons A  private  “room”  online  to  discuss  topics  with  other  clients  or  peers Types  of  investments  he/she  is  considering  or  monitoring Note: Results from above are all from investors who are connected with their advisors on social media. Note: detail in following pages 1.   2.   3.   Rank 4.   5.   6.   7.   8.   9.  
  • 15.   Other items investors told Finect that they do not want to view on their advisor’s social media timeline include: • “Promotion/sale pitch” • “Personal discussion /chats/personal crap” Note: Some investors stated that personal info on an advisor’s Facebook profiles is acceptable but not on his/her professional social media accounts The  least  important  interac?ons  with  advisors  on   social  media   Highlights  from  his/her  personal  life.  Example:  travel  photos Share  Interes?ng  topics  not  related  to  finance.  Ex:  amusing  YouTube   videos Online  events  with  my  advisor  and  other  clients Business  informa?on  such  as  fee  structure,  offices,  special  exper?se Note: Results from above are all from investors who are connected with their advisors on social media. Note: detail in following pages Rank
  • 16. Point:   Not  at  all  important  =  -­‐2 Slightly  important  =  -­‐1 Moderately  important  =  0 Very  important  =  1 Extremely  important  =  2   Q:  How  would  you  like  to  communicate  with  your  advisor   on  social  media?  Rate  their  importance   Note: Results from above are all from investors who are connected with their advisors on social media. Point Statistical significance according to one-way ANOVA block design Statistical significance according to one-way ANOVA block design !35$ !30$ !25$ !20$ !15$ !10$ !5$ 0$ 5$ 10$ 15$ 20$ Highlights(from(his/her(personal(life.(Example:(travel(photos Interes9ng(topics(not(related(to(finance.(Example:(Sharing(amusing( YouTube(videos Online(events(with(my(advisor(and(other(clients Business(informa9on(such(as(fee(structure,(offices,(special(exper9se Types(of(investments(he(is(considering(or(monitoring A(private(“room”(online(to(discuss(topics(with(other(clients(or(peers RealL9me(answers(to(my(ques9ons Types(of(investments(used(for(current(clients Ar9cles(and(research(the(advisor(has(wriNen Updates(on(my(investments Instant(access(to(research,(white(papers,(videos(he/she(recommends Educa9onal(ar9cles(and(research(the(advisor(has(shared(with(others Trending(investment(or(personal(financial(news/topics
  • 17.  TOP  5  social  media  features  investors  prefer  when   choosing  advisors 1.   The  advisor’s  availability   to  answer  ques?ons Qs A 2.                              The  quality  of  financial   resources  advisors  shares   online 3.                              The  level  of  knowledge  in  the   advisor’s  ar?cles/blogs/posts The  tone/manner  in  which   they  engage 4.   The  advisor’s  online  profile  informa?on  such   as  professional  licenses,  educa?on  and   experience 5.   Note: detail in following pages
  • 18.  Least  important  social  media  features  when   choosing  an  advisor The  number  of   advisor’s  followers The  frequency  of  advisor’s   own  arHcles/blogs/posts How  fast  advisor  responds/ replies  via  social  media Note: While these features are the least important to investors, one should not conclude investors place no importance on them. “Quality  >  Quan3ty.” Note: detail in following pages
  • 19. Q:  How  important  are  the  following  social  media  features   when  choosing  an  advisor? Point:   Not  at  all  important  =  -­‐2 Slightly  important  =  -­‐1 Moderately  important  =  0 Very  important  =  1 Extremely  important  =  2   Point Statistical significance according to one-way ANOVA block design !150% !100% !50% 0% 50% 100% 150% The$number$of$his/her$followers The$frequency$of$his/her$own$ar6cles/blogs/posts How$fast$they$respond/reply$via$social$media The$advisor’s$online$profile$informa6on$such$as$ professional$licenses,$educa6on$and$experience The$tone/manner$in$which$they$engage The$level$of$knowledge$in$the$advisor’s$ar6cles/blogs/ posts The$quality$of$financial$resources$he/she$shares$online The$advisor’s$availability$to$answer$ques6ons
  • 20. 1. Investment performance:   • “I would like to have access to all the performance data of the accounts they control, up to date and complete.” (35-44 male)  • “The most important thing is for the advisor to disclose his/her own portfolio results and/or credit score (FICO).” (35-44 male) • “Proof! Ability of their picks to outperform the market. Individuals are better than an advisor can outperform the market - net fees. So just show us.” (25-34 male) • “Validating their performance and client results.” (25-34 male) • “I'd like to see a posting of the ROI performance of their advice on a rolling quarterly basis. They could create a model investment program and make it public. Talk about transparency and believability! Better yet, post their personal portfolio of investments showing the return.” (65 or older male) • “Track record.” (45-54 male) • “Previous financial acumen w/ clients.” (45-54 male) Addi?onal  behavior  or  feature  that  affect  investor’s  decision  when   choosing  an  advisor  (both  online  &  offline)
  • 21. 2. Recommendation:   • “I prefer to be recommended by someone I trust to an adviser.” (25-34 male) • “If others are forwarding or liking their social media posts.” (45-54 female) • “Recommendation from friend or colleague.” (35-44 male) • “Prior relationship with someone I trust.” (65 or older female) • “Endorsements from others.” (35-44 male) • “Offline reputation - I'd need a referral or recommendation from a person I know in real life.” (35-44 male) Note: Testimonial and endorsement on social media might violate compliance regulations 3. Customer experience:   • “Excellent Customer Experience.” (35-44 female) • “Patience, all due diligence on them is very important.” (45-54 female) 4. Reputation: • “Respect / following by other industry authorities (Warren Buffet types, VCs, etc.).” (45-54 male)   • “Who follows him or her on social media.” (25- 34 male)    • “Appearance. I would choose someone who looks successful, up to date on trends, and attractive over someone who is not.” (25-35 female) • “Online reviews.” (25- 34 male) • “I want someone who shares beyond the obvious, and does not always follow the herd.” (45-54 male) Addi?onal  behavior  or  feature  that  affect  investor’s  decision  when   choosing  an  advisor  (both  online  &  offline)
  • 22. 5. Services:   • “Fee disclosure on products.” (35-44 male)   6. Content that shows knowledge level:   • “Other subjects that he writes/blogs/shares.” (35-44 female)   • “Relevant and substantive content.” (55-64 male) 7. Credibility:   • “FINRA status.” (55-64 female) • “Years of experience.” (25-34 male) • “Credentials and validation.” (45-54 male) • “Education credentials.” (25-34 female) • “Higher Education.” (45-54 male) • “How is the advisor authenticated as an advisor? Identity theft risk is kind of high there.” (35-44 female) 8. Other communication approaches:   • “Moderate availability to use Face Time and/or Skype to interact during financial meetings to target goals and discuss strategy and structure.” (25-34 male) • “Sharing relevant information - e.g. info and advice that goes into further detail on your investments, often nice if shared in video format because it's easier to digest.” (35-44 female)   9. Privacy:   • “Privacy is key so prefer not to have too much made public by my advisor.” (45-54 female) • “Whether I'd want them seeing my personal profile. (on social media)” (25-34 male) • “I prefer that I can't be identified as a client of the advisors. (on social media)” (25-34 male)   Addi?onal  behavior  or  feature  that  affect  an  investor’s  decision  when   choosing  an  advisor  (both  online  &  offline)
  • 23. 10. Don’t believe is necessary on social media: • “None. I feel like financial advisors should be more concerned w/ managing clients' money, instead of soliciting/marketing on social media.” (35-44 male) • “I don't think social media would cause me to choose an advisor. I'd need a lot more information, particularly about past returns & their overall process.” (25-34 male) • “I wouldn't choose one through social media. I chose mine through research and don't care that they are not online much - we connect via email.” (45-54 female) • “I would not choose an advisor through social media. I might use social media to identify potential advisors.” (45-54 male) • “I am unlikely to choose an advisor through social media. I would like to become an advisor, but early in my journey.” (45-54 male) Addi?onal  behavior  or  feature  that  affect  investor’s  decision  when   choosing  an  advisor  (both  online  &  offline) I  would  not  choose  an   advisor  through  social   media.  I  might  use  social   media  to  iden3fy   poten3al  advisors.   (45-­‐54    male)
  • 24. I  would  base  the  decision   off  a  referral  and  my   interview.  Social  Media   would  be  a  way  to  gain  a   picture  of  the  individual. (35-­‐44  male) Addi?onal  behavior  or  feature  that  affect  investor’s  decision  when   choosing  an  advisor  (both  online  &  offline)   Other information from investors:   • “LinkedIn’s company website and blog are all useful but not sufficient for money decision.” (55-64 male) • “Twitter & Linked are important. Facebook is not.” (45-54 male)   • “I would base the decision off a referral and my interview. Social Media would be a way to gain a picture of the individual.” (35-44 male)
  • 25. ABOUT OUR RESPONDENTS Survey duration (3 months): Total respondents: 232 Completed rate: 80% Gender:Total value of investment: 71% 29% 25% 25% 50% Mainstream Emerging Affluent High Net-Worth Currently investment products: 75# 149# 126# 77# 26# 27# 27# 87# 44# 136# 13# Bonds! Stocks! Mutual Funds! ETFs! Commodities! Hedge funds/alternative! Futures and options! Real estate! College savings! Retirement savings/accounts! Impact/other thematic investing!
  • 26. ABOUT OUR RESPONDENTS Geographic: Using social media: Age range: Individual investors invest in US Author: Yi-Hsuan Chen, Passionate Marketer in the Financial Industry and the Marketing Manager of Finect. She received the Advanced Business Certificate (ABC) in Marketing Intelligence during her MBA in the University of Connecticut. Contact: Sherry.chen@finect.com < 25! 25-34! 35-44! 45-54! 55-64! > 64 ! Yes, 87% No, 13%
  • 27. ABOUT FOLLOW  US: We enable investors and investment professionals to connect in a safe and simple way It’s free. Get Started with Social Media Using Finect? Compliance Controls Monitoring, tracking, and archived reports for all social media activities including Twitter/Facebook/LinkedIn One-stop Social, Connect The Compliant Social Network for the Financial Services Industry Document Library Using one-stop social media to connect with investors, advisors, asset managers, listed companies and financial institutions Boost  online  reputa?on  by  posting research, investment insights, presentations, brochures, and/or prod to Library