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.”