A new study from Canada Life Group suggests that 12% use social media to carry out research when choosing a financial provider or purchasing financial products.
Providers and advisers who are not making the most of social media should take note that a third of those surveyed said they were more likely to buy financial products if they were able to research a provider or adviser on social networking sites.
61% said that they use the internet to research financial providers, products and price more than they did five years ago. This is because more information is available (68%), information is easier to obtain (66%) and they are more financially aware than they used to be (53%), possibly as a result of the recession.
| Which social media sites do you use to research financial products or providers? | |
81% | |
40% | |
| Internet Forums | 30% |
| YouTube | 15% |
14% | |
| Google+ | 10% |
| None of the above | 6% |
| MySpace | 1% |
| Other | 1% |
12% currently use social media sites to carry out financial research, with those aged 21-30 most likely to do so (16%). Facebook proved to be the most popular (81%) social media platform on which to carry out financial research, followed by Twitter (40%) and internet forums (30%). Of those who do not currently use social media for this kind of research, 22% say they were not aware that social media contained information about financial products.
Of those who do use social media to conduct research into financial products and providers, a relatively small proportion are motivated by price, with 40% doing so to find the latest offers and best deals. Instead, consumers use social media when carrying out financial research for a variety of purposes, such as reading provider/product reviews and recommendations (51%), and researching product information (49%) and provider options (47%).
| Which of the following statements apply? | Financial Advisers | Providers of financial products |
| I would save money when purchasing products/advice if they actively used social media | 34% | 35% |
| I am more likely to buy from them/pay for their services if I can use social media to research them | 33% | 32% |
| I think more advisers/providers should use social media | 32% | 34% |
| I would have more interest in their brand if they offered unique or interesting content on social media | 32% | 31% |
| It would save me time if they actively used social media | 30% | 28% |
| I would trust them more if they actively used social media | 29% | 29% |
| It would make the process of buying products/financial advice much easier if they used social media | 28% | 25% |
| I would be more likely to buy from them/pay for their services if I can contact them via social media | 26% | 29% |
Social media has many perceived benefits when it comes to purchasing financial products or advice – over a third believe they would save money if a financial adviser (34%) or provider (35%) actively used social media. A similar proportion are more likely to buy from financial advisers (33%) or providers of financial products (32%) if they can use social media to research them, while 34% believe more financial providers should use social media (32% for financial advisers). Unique or interesting content on social media would make 31% more interested in financial providers’ brand, while 29% are more likely to trust financial advisers/providers who actively use social media.
Paul Avis, marketing director at Canada Life Group, said: “As government statistics estimate over 36 million adults in the UK currently use social media, the opportunities social networking provides for financial providers and advisers are endless. From our research, over one in 10 consumers already use social networks to carry out financial research, and this proportion is bound to increase as social media plays an increasingly prevalent role in society.
“Financial advisers and providers who are not already making the most of social media should take note that consumers are growing more aware of their options, with most researching financial services more now than they did five years ago. Using social media sites to communicate with customers is a modern and effective way of conveying the importance of financial products that help to safeguard consumers’ finances, and can only represent a positive sign for the industry.”
