Investment Managers, hoping to increase the effectiveness of their website or online marketing efforts, via online financial communities or sharing of financial advise had better re-evaluate their approach. New research shows they have an uphill battle and are going nowhere fast.
Research published by the Cisco Internet Business Solutions Group (IBSG) in February 2010 has some interesting findings that can be leveraged to help guide the website and online marketing efforts of Investment Managers. We’ll take a look at 3 key findings and what the results can tell us.
Finding #1: Sources of Financial Information not likely to include Investment Manager’s websites or social media
The over 1,000 consumers who were surveyed have many established sources of financial information available to them. If an Investment Manager is establishing yet another avenue for financial information and education, the value provided to consumer and Investment Manager alike will be questionable.
Finding #2: Financial Communities Built Around an Investment Manager have little chance of success
At this point in time, it appears that few of the surveyed individuals have any interest in utilizing an online financial community, and those that do, wish to utilize one on their retail banking website. Interestingly, social networks also have very little applicability in building out a financial community.
Finding #3: Active Financial Advisors are needed to establish trust in a Financial Community
Not surprisingly, professional Financial Advisors are required within an online community, in order to instill a sense of trust with clients and prospects alike. Few Investment Managers have their own captive Financial Advisor staff; as a result, there is little chance of an investment manager being able to achieve the scale needed to launch a online financial community on their own.
Investment Managers who are looking to invest in their websites and online marketing efforts will not likely experience a positive cost/benefit if they attempt to build and maintain an online community. The dollars and effort should be spent elsewhere where there is an unmet need in the marketplace.