CorpComms Magazine

Many large financial services firms neglect social media as a route to engage with their business customers but are ill-advised to do so, according to a new report by Forrester Research.

Their reluctance may be attributed to concerns over regulatory risks or to a lack of resources dedicated to social marketing to an institutional audience.

However, the report's author Michael Greene, interactive marketing analyst at Forrester, claims that regulatory concerns are beginning to fade and financial services firms should consider social media to connect with professional clients because many of them have already embraced social tools.

Three quarters of financial professionals already use social media at least once a month for business purposes, according to the report, while 83 per cent of online adults use social tools for consumer purposes.

The report found that financial professionals are likely to engage in passive social activities, such as reading blogs or joining social networks. They also use social media to educate themselves on financial products and market trends and to build deeper relationships with peers and customers.

Just five per cent of financial professionals cite community size as a reason to join a social network. Instead, they look for niche communities where there is relevance and high quality discussions.

Greene recommends financial services firms should listen to and observe existing communities in an effort to refine their social media strategy for engaging with professionals.

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