Social Media in Wealth Management

The Evolving Role of Social Tools for Superior Customer Experience
by Isabella Fonseca,  Sreekrishna Sankar, January 18, 2012
Industry Trends
Global, Asia-Pacific, EMEA, North America


Although the adoption of social media among wealth management firms is at early stages, financial services firms have recognised its relevance as a customer interaction channel. Investing in client communication tools has become a priority, and social media is a channel they can no longer ignore. In this context, making the right social media technology choices has become paramount.

The crisis of 2008 and the economic recession following it affected the perception investors have about wealth managers and financial services providers, leading to lower levels of trust. Therefore firms have to be more proactive and dynamic with their customer interactions, with social media being one of the key new age media channels.

In a new report, Social Media in Wealth Management, Celent explores the rate of adoption of various types of social media in financial services, with a focus on the key issues and roadblocks, including compliance concerns and regulatory constraints. Celent explores how firms are using social media to reach out to their customers: for marketing, support, or loyalty among retail brokers, wealth managers, and financial planners. The report analyzes the technology offerings in the market that enable financial services firms to efficiently execute their social media strategy while complying with regulatory requirements and internal monitoring and compliance policies.

“The use of social media among wealth managers provides an opportunity to increase client communication, add touchpoints, and increase client stickiness. Furthermore, social media tools give wealth managers new modes for prospecting and measuring influence,” says Isabella Fonseca, Research Director at Celent and coauthor of the report. “However, wealth managers who have not taken the initial steps in developing a social media strategy run the risk of losing their relevance in a world where even the most thoroughly vetted and sophisticated advice can drown in a sea of peer-generated content.”

“Social media technology sales are initiated by a firm’s marketing departments in most cases, while the compliance departments participate to ensure regulatory compliance,” says Sreekrishna Sankar, Celent analyst and coauthor of the report. “The current crop of solutions is provided mainly by generic vendors that focus on compliance issues and enable archiving and audits for wealth managers and retail brokerages. But we are seeing the emergence of specific solutions focused on social media requirements for wealth management firms.”

In this report, Celent extrapolates the future roadmap for social media adoption, from the unanimous adoption of policies to the emergence of effective social media analytics and effective ROI calculation by 2013.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
Tel: +1 212 345 1366

Europe (London)
Chris Williams
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
Tel.: +81 3 3500 3023

Table of Contents


Executive Summary





Defining Social Media



Drivers of Social Media Growth


Regulation and Compliance



Regulations in Other Parts of the World


Market Overview



Social Media Best Practices


Social Media Around the World



Raymond James



Morgan Stanley Smith Barney



Broker-Dealer Examples





Technology Trends and Offerings






Monitoring and Analytics



Social Metrics and Benchmarking Offerings



Administration Management


Looking Forward


Leveraging Celent’s Expertise



Support for Financial Institutions



Support for Vendors


Related Celent Research


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