Financial services companies are promoting social media literacyamong their advisors and representatives, according to a study byLIMRA.

The study polled 36 financial services companies to understandthe ways they used social media. The research found that six in 10companies offer programs to assist their financial professionals ineffectively using social media for business purposes andestablishing best practices for usage.

Having a social media presence makes sense for financialservices firms, as the industry continues to try to reach consumersin new and different ways, and as the ubiquity of consumers of allages using social channels for both products and informationcontinues to grow.

According to the report, the level of support companies offer tostaff for how to use social media tends to vary from institution toinstitution, depending on the level of existing social mediasophistication among the financial professionals at a givencompany.

The report identified three factors critical to social mediasuccess: executive buy-in, internal training and awareness.

One large problem financial services companies face inattempting to leverage social media is that while effective socialmedia content is created quickly and released in a timely fashion,regulations governing the financial services industry often demandthat many people to sign off on content before it gets released tothe public. Thus the speed of review processes, reticence torelease content or a lack of content to post can prevent financialservices companies from being effective in the social sphere.

As with many industries still working to figure out the preciserole that social media should play in an overall strategy,financial services institutions are finding that social media isnot an end in itself, but does have potential benefits if usedcorrectly, and with realistic expectations.

“Companies and financial professionals successful with socialmedia know it is not a magic bullet,” said Norah Denley, seniorresearch analyst of Distribution and Technology Research at LIMRAin a statement on the report. “They realize it’s a powerful tool toestablish and nurture relationships, part of their broadermarketing efforts, and that over time it can help contribute tosuccess.”