Financial services companies are promoting social media literacy among their advisors and representatives, according to a study by LIMRA.

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

Having a social media presence makes sense for financial services firms, as the industry continues to try to reach consumers in new and different ways, and as the ubiquity of consumers of all ages using social channels for both products and information continues to grow.

According to the report, the level of support companies offer to staff for how to use social media tends to vary from institution to institution, depending on the level of existing social media sophistication among the financial professionals at a given company.

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

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

As with many industries still working to figure out the precise role that social media should play in an overall strategy, financial services institutions are finding that social media is not an end in itself, but does have potential benefits if used correctly, and with realistic expectations.

“Companies and financial professionals successful with social media know it is not a magic bullet,” said Norah Denley, senior research analyst of Distribution and Technology Research at LIMRA in a statement on the report. “They realize it’s a powerful tool to establish and nurture relationships, part of their broader marketing efforts, and that over time it can help contribute to success.”

Instant Insights /

Social media training picks up at financial services firms

More From HR Executive

Related Stories

Recommended For You