So far, financial advisors might be aptly described as "window shoppers" rather than active users when it comes to employing social media in their businesses. But that may be changing as a growing number of advisors say they've used it to attract new business, according to the recent SEI Quick Poll.
Nearly 80 percent of advisors surveyed said they have some business presence on social media and 56 percent indicated they were only "tiptoeing into it," while nearly one in five respondents said they've secured a new client as a result of their social media activity.
The SEI survey, completed by 185 advisors, found that while most advisors use social media in some way, they also realize they have more to learn. Twenty-four percent of respondents said they were "mildly active" using social media and 19 percent said they still have no social media presence. However, 94 percent said they plan to increase their use of social media in the coming year.
The survey also indicated that some advisors may have reservations holding them back from embracing social media. Thirty-seven percent of advisors said that "coming up with frequent and relevant content" is their biggest challenge or concern in employing social media in their work. Roughly 30 percent noted broker-dealer concerns and 15 percent cited the future regulatory environment as factors in their social media reticence.
The survey is part of SEI's Monthly Practice Management webinar series for financial advisors. SEI provides investment processing, fund processing, and investment management business outsourcing solutions for corporations, financial institutions, financial advisors, and ultra-high-net-worth families.