The New Truth

Social Media: Too big for wealth managers to ignore?

Wealth management is underestimating flow of information and influence of social media while wealth clients are beginning to embrace social media.

Social media is too big for wealth managers to ignore.

Wealth managers need to step outside their comfort zones and employ social media in ways that might run contrary to their traditional client-side behaviors. Changes in wealth management client expectations require real-time responsiveness from wealth managers. Through social media, the industry faces a rare opportunity to up their game by building stronger one-on-one client relationships in the very crowded wealth management marketplace.

The lines between ‘real world’ and ‘virtual world’ are blurring. Social media adoption is affecting everything we do as individuals, from staying in touch with friends to impacting how we do business in general. Clearly, social media is driving sustained and irreversible disruption in how consumers stay informed, how they make decisions and how they interact with businesses. Wealth managers, as in other industries, must quickly adapt or face obsolescence.

Now is the time to act. We are witnessing shifts in demographics, wealth and location that, in turn, are changing the nature and the scope of the industry. For wealth managers, the opportunities – and the risks – are real and immediate, requiring the industry to rethink how it can provide clients with services they can’t already get online.

Wealth managers must embrace these changes. This requires stepping outside their comfort zones and employing social media in ways that might run contrary to their traditional client-side behaviors. Changes in client expectations require real-time responsiveness from wealth managers. Through social media, the industry faces a rare opportunity to up their game by building stronger one-on-one client relationships in the very crowded wealth management marketplace.

In the pages that follow, we take you on the wealth management journey, focusing on present-day and future applications of social media, including the evolution of the client relationship, how to manage social media disruption, social risks and regulations, and the steps wealth managers should be taking right now.

As inconvenient as the adoption of social media might seem to wealth managers today, the future of the industry could very well be at stake.

© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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Mitigating the social media shift

Social media analytics providing wealth managers with customer insight and sentiment.

 
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Social risk and regulations

Social media outreach and standards will fall under wealth management regulations.

 
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Next steps

The 8 steps for wealth managers to be effective in social media.

 
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Conclusions

With technology driven paradigm shift, wealth managers needs new angles like social media.

 
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