As a quick follow-up to my post about how to convince your executive team to reconsider social media, there’s a good piece in today’s FT about the trends emerging in social media as it relates to financial services – and particularly the fund managament world.
Emma Boyde concludes her piece by saying that:
even if asset managers are doubtful over the use of social media as a trading tool, its value in the public relations space cannot be ignored.
Some of the key points in the article:
- Reputation is one of the most valuable asset a company possesses but controlling it amid the rise of social media is a growing challenge.
- When it comes to financial promotions, the Financial Services Authority regards new media as no different to any other medium. It defines new media as “social networking websites such as Facebook and Twitter, forums, blogs and iPhone applications.”
- In 2008, Corporate Insight, an independent financial services research group, found that none of the mutual fund companies it tracks were using Twitter. By 2010, half of them were doing so.
- Similarly, in 2008, no financial services company that Corporate Insight tracked had a Twitter profile to address comments from Twitter users about their firm. By 2010, several leading firms, including asset managers such as Vanguard and Fidelity, were offering customer service and answers questions from Twitter via their company profiles.