Financial advisors could stand to benefit from having a more of a presence on social media, especially if they are looking to work with younger consumers, according to research from LIMRA.
Findings from the 2019 Insurance Barometer Study showed that roughly 85 million Americans use social media to learn more about financial advisors. Six in 10 of these consumers say they use social media sites to find information on financial services products and services or were looking for reviews on financial professionals.
In order of importance, consumers rate Facebook as the most important social media platform to get information. LinkedIn came in second and Yelp was closely behind.
Not only should the financial advisors have a presence on social media, they must be active to effectively engage with consumers, especially those under 50, the research showed.
Topping the list of information consumers said they find valuable when engaging on social media are: An explanation of how to save money (39 percent), comments from other people (38 percent), a statistic that makes them look at a specific situation differently (33 percent), a definition or explanation of an industry term, and a quote from someone who has lived through a unique or specific experience (28 percent).
The study also revealed that more than a quarter of Americans (27 percent), prefer to work with an agent or advisor when buying life insurance. It said one in five Americans (17 percent) indicated that they are looking for a financial advisor.
Millennials and Generation X consumers are most likely to be among those who are looking for an advisor. The research showed that more than half (51 percent) of millennials and 32 percent of Gen Xers say they are more likely to be using social media to research financial professionals.