Caitlin Fitzsimmons Online editor

Caitlin covers social media, marketing and technology and is BRW's social media editor. She has worked as a journalist in Sydney, London and San Francisco, writing for titles including The Guardian and The Australian Financial Review.

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Financial institutions failing to deliver what wealthy customers want on social media

Published 02 October 2013 10:45, Updated 03 October 2013 07:38

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Financial institutions failing to deliver what wealthy customers want on social media

Wealthy clients want more information from their financial service providers – and they want it faster.

Wealthy Australians want financial institutions to deliver better information through social media, according to LinkedIn research.

A survey of the lucrative customer segment known as “mass affluents” found posts on social media were a powerful call to action but most financial institutions were falling short.

The mass affluent demographic is defined as people with $100,000 to $1 million in assets besides the family home.

In Australia, 83 per cent of this customer segment is already using social media networks.

Of the mass affluents using social media, 54 per cent engage with financial institutions, 42 per cent engage with content shared by financial institutions on social media, and 36 per cent turn to social media for financial education or research.

The research found they don’t just want financial institutions to have a social media presence, they want real information in the form of market commentary, product information and account changes.

For a bank or credit card company, their customers are most likely to want a social media presence to enhance customer service. For asset managers, their customers appreciate timely updates.

One in three expects a bank to have a social media presence, one in five expects it of asset managers and one in six expects it of credit card providers.

This suggests the financial institutions are missing out on building relationships with a valuable customer segment, particularly since the research also shows the outcomes are tangible and not just about brand building.

The study found when mass affluents engage with financial institutions on a trusted social media platform, the outcomes are more than just education and validation but translate to actual action.

Globally, two out of three social media users are driven to open or close an account or purchase a product, regardless of whether they are using the networks to stay up to date on trends or to gather information to make a financial decision.

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