Discovering Opportunity in an Evolving World

For wealth managers, the rapid acceleration of digital adoption during the coronavirus pandemic has dramatically changed the way we engage with each other and our clients. More than ever, social media and digital marketing strategies are critical to building and nurturing relationships.

At SIFMA’s 2022 Social Media & Digital Marketing Seminar, leading names in private wealth management gathered for in-depth discussions with financial advisors, marketing experts, and legal and compliance professionals on innovative opportunities to grow a financial advisory business with social media and digital marketing. 

Three key takeaways arose from our far-ranging discussions:  

1. Custom content is always the best strategy – make sure it includes video 
2. The way investors consume information continues to change 
3. Social media is a powerful tool to protect the investor

Custom content is always the best strategy – make sure it includes video

Financial advisors with maturing social media and digital marketing strategies are increasingly creating custom content to drive meaningful engagements with current and prospective clients. “Creating culture has been paramount,” said Merrill Lynch’s Cheryl Smith.

“Just like everyone else, we were present on social media,” said Michelle Marquez of Marquez Private Wealth Management, an affiliate of Raymond James. “But were we intentional? No, we were not. We were posting all your dull and boring topics.” Now, Michelle’s team creates purposeful, customized content rather than sharing stock posts. Before posting, a cross-generational team reviews the drafts. “We’re trying now to have a better understanding of who we’re engaging and who’s liking and sharing these posts,” she added.  

While advisors tend to be most active on LinkedIn, Twitter usage is growing rapidly. The other biggest trend coming out of the pandemic? The explosion in the use of video for communication and the investment by financial advisors in its creation.

Hearsay Systems told Seminar participants that video delivers outsized impact. Users tend to remember 95% of the marketing message from video compared with 10% if they read text. When it comes to making a decision about a product of service, 9 out of 10 consumers say video helps them with their choice. Confirming this trend, Kevin Darlington shared Broadridge’s recent FA marketing survey which found that video is a top future investment (interestingly, the top five investment areas skew strongly digital and are: social media, in-person events, websites, creating video content and advertising in digital media).

Perhaps the most challenging aspect of a social media and digital marketing strategy is to get comfortable promoting yourself, said April Young, branch manager for Wedbush Securities and partner with Delizio Young Financial Group. Delivering an honest and authentic personal brand to a public audience can make us feel vulnerable and requires courage. The good news is that advisors are not alone: many firms are investing in marketing/communications resources to help advisors leverage social and find value. “The big takeaway is for financial advisors to remember they have specialists to help get started or take efforts to the next level,” said Natalie Svider of Wedbush Securities. Katie Pfledderer of Charles Schwab noted that coaching conversations start with developing an understanding of an advisor’s business objectives for the year and then finding ways to use social media to achieve them.

Looking for inspiration? Explore these real-life social and digital profiles for our financial advisor panelists: 

• Beth Norman, AWM, CFP 
• Mike Dickman, CFP 
• Michelle Marquez 
• Cheryl Smith, CFP, CEPA 
• April Young 

The way investors consume information continues to change

There is an ongoing democratization of information flows for retail investors, argues Eric Savitz of Barron’s, which is increasing retail participation in the markets. It should come as no surprise that increasing information flows are driving shorter attention spans.

In early 2021, at the height of meme stock mania, retail investors in the United States generated about as much equity trading volume as mutual funds and hedge funds combined.  A recent Deutsche Bank survey found that almost half of U.S. retail investors were completely new to the markets in the past year. Roughly six million Americans downloaded a trading app in January 2021 alone.

Access to information is absolutely a good thing, Eric says, but we must encourage retail investors to plan for the long-term. (As our industry well knows, those investors who work with a financial advisor always come out on top.)

The last two years have indeed seen an increase in the use of collaboration tools and web conferencing, both internally and externally facing. The industry has done tremendous work to promote better communication with client and the public more generally. Mike Dickman, a Certified Financial Planner with Charles Schwab, described his client’s eager participation in Webex video briefings (with no fighting for parking in San Francisco, to boot).

Related, we’ve been forced to rethink long-held biases and preferences about the way we collaborate at work, said Mike White, Chief Marketing Officer and Director of Strategic Planning for Raymond James. Workstyles vary by generation, said John Gruszczyk of Microsoft Teams, and it’s exciting to consider the ways in which our day-to-day work lives might change. A top question he receives is “will email go away?” John assured us it will not, but there is certainly a trend toward real-time collaboration tools. The adoption cycle typically starts with meetings and chat functions, and then grows into calls, collaboration tools and automation.

Social media is a powerful tool to protect the investor

We’ve all seen it: social posts promising #guaranteedprofit.

In September 2021, FINRA published 11 FAQs on advertising regulations, including video content, hyperlinks and video conferencing platforms. Amy Sochard, Vice President of Advertising Regulation, said that FINRA may have many pages of rules but their basic premise is the same: to protect investors from misleading or unfair communications.

“It is my view,” said Owen Donley, Chief Counsel, Office of Investor Education and Advocacy at the U.S. Securities and Exchange Commission, “that utilizing educational content both helps you build a better brand and trust and also serves the twin goal of protecting the capital markets.”

Social media is being used to facilitate fraud but it also has an amazing ability to teach, getting money out of the hands of fraudsters and into a regulated space. Not only does this help investors, it also helps capital go where it is supposed to go and thereby facilitates capital formation. Creating organic, custom and compliant content can be a challenge; create a trusted brand that illustrates your core values by weaving in educational content from trusted sources including your own firm. You’ll fill your channels with meaningful, engaging and in-demand content that helps investors make better, more informed decisions.

COVID has changed not only how we do business but also how we comply with regulations. Compliance and legal professionals are key allies in the effort to protect the investor. They have become true partners in developing solutions that meet both the communication needs of the firm and its regulatory responsibilities. Melanie Taylor, SVP eComm Compliance at LPL Financial, referenced a recent survey of SIFMA’s Technology & Regulation Committee that sought to find out what is keeping these individuals up at night – and what we can do about it.

Owen summed up the day’s conversations for us with one simple question: “What values are you going to push out?”

Our sincerest thanks to this year’s speakers, participants, and sponsors – Hearsay Systems, Smarsh and Yext. On the camera and off, in person or through the screen, it is always our pleasure to gather this remarkable group of professionals. To keep up to date with us and the latest news and trends in wealth management, sign-up for SIFMA SmartBrief: Wealth Management Edition.

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Melissa MacGregor is Managing Director and Associate General Counsel for SIFMA. She advises the advocacy and policy activities of the SIFMA General Counsels Committee and the Technology and Regulation Committee, along with several specialized working groups.

John Maurello is Managing Director, Private Client Services for SIFMA. He is an advisor to the Private Client Services Committee, which consists of business leaders representing all private client distribution models. He also advises 14 roundtables supporting Private Client, Regional and Small Firms.