January 12 (New York) – Novarica (www.novarica.com), a research and advisory firm focused on markets, operations, and technology in insurance and wealth management, has issued a new report identifying best practices for wealth management firms to follow in order to maximize the benefits of Social Networking. Top findings from the report include:
- Appropriate use of social networking tools is most beneficial when combined with online trading capabilities, resulting in increased client trading through better distribution of trading ideas and concepts, thereby increasing firm revenues. Without trading capabilities, social networking simply adds costs in terms of managing the new channels.
- Outside the self-service online brokerage industry, few wealth management firms are successfully deploying social networking tools, thereby missing opportunities to increase client loyalty and capture the elusive Generation Y investor, the future of wealth management.
- Firms need to incorporate social networking at their own sites and on their own servers to ensure appropriate compliance; having advisors doing their own thing on Twitter and Facebook is a recipe for a compliance disaster.
“Social networking is a powerful dynamic sweeping communications and peoples’ daily interactions through technology. By combining social networking tools with online self-service capabilities, wealth management firms can build powerful integrated offerings that improve trading volume and client loyalty while creating a methodology for firms to capture the still-elusive Gen Y investor,” comments study author Robert J. Ellis, a principal and head of wealth management at Novarica.
The 15-page report includes tables outlining current social networking of leading institutions and is available from Novarica at http://www.novarica.com/report_social_networking_wm.shtml. Mr. Ellis will also be hosting a webinar discussing the report on January 27 at 2 PM Eastern. Interested attendees may register online at https://www1.gotomeeting.com/register/141451256
