Social media is playing a greater role in the personal finance decisions of the wealthy
Social media has long been a ‘go to’ resource for purchase queries or holiday intel, and now it’s becoming a source of information for those considering their finances, too. Well, those with a wedge of cash in the bank at least.
According to a survey by Cogent Research LLC, seven out of 10 wealthy investors have either changed their relationship with their investment provider or made actual investments based on something they’d read on social media.
According to the survey, which questioned 4,000 investors with more than $100,000 in assets, 34% specifically use sites such as Facebook, LinkedIn and Twitter for personal finance guidance, and 36% said social media has resulted in them contacting their advisors with queries.
Of course, if 34% are using social media in this way, 66% are not, so the numbers are still small. However, they do nonetheless indicate the sweeping effect social is having across all sectors and demographics. How long until this trend trickles down to web users with more modest incomes looking for financial guidance? Advisors and banks need to be prepared to capitalize on this forthcoming and potentially lucrative new market.