Jennifer Grazel

Trends  in  Finance  &  Social  for  2014  

T O R O N T O  

High Net Worth Individuals

Methodology Short online questionnaire with respondent recruited from a panel sample.

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ALL RESPONDENTS WERE IDENTIFIED AS

HNW INDIVIDUALS. This was defined as those

holding over $1.1million CAD in personal investable

assets*

TOTAL SAMPLE OF 151 RESPONDENTS

§ 57 with $1.1-5.5million in investable assets

§ 64 with $5.5-28million in investable assets

§ 30 with $28million+ in investable assets

Social media adoption among HNWI is well penetrated and usage is maturing

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Do you use the following social media sites/services?

BASE SIZE: 151 HNW individuals

NONE

62% 45% 42% 26% 19% 3% 15% OTHER

In contrast with other regions, social media adoption increases with investable assets among HNWI

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Do you use the following social media sites/services?

BASE SIZE: 57 Affluent; 64 Ultra Affluent; & 30 Über Affluent HNW individuals

Social media users (any network including LinkedIn) LinkedIn users

82% 83%

97%

46% 50%

33%

AFFLUENT $1.1-5.5million

ULTRA AFFLUENT $5.5-28million

ÜBER AFFLUENT $28million+

Activities undertaken on social media by network

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Top 8 most frequently mentioned activities undertaken on social media

LinkedIn occupies a unique space in the market, and is perhaps better positioned to talk to HNW individuals about financial information as it is already widely used by them for professional purposes…

ACTIVITIES TOTAL

Keep up with current friends/family 63% 15% 61% 28% 31% 11%

Post personal updates about my life 53% 22% 45% 20% 31% 2%

Read updates or posts from colleagues 58% 51% 39% 25% 34% 16%

Connect with current/past business colleagues 54% 60% 24% 23% 17% 6%

Connect with select circles of people on a particular issue or goal 48% 43% 24% 28% 31% 13%

Stay up-to-date with current news/events 44% 32% 22% 30% 31% 25%

Receive updates related to my job or industry 42% 47% 16% 23% 24% 10%

Obtain a review or recommendation (e.g. products, services, events, etc.) 42% 37% 26% 18% 28% 29%

51%

60%

43%

32%

47%

37%

#inFC14   7  

turn  to  social  media  to  inform  their  financial  decision  making    

in  Canada  

1 in 2 HNWI

47% of HNW individuals in Canada make use of social media for financial purposes …..

8 BASE SIZE: 94 Facebook; 40 Twitter; 63 YouTube; 68 LinkedIn; & 29 Google+ users

46% of HNWI’s already use LinkedIn for financial purposes

HNWIs are tapping into various forms of content to inform throughout the Financial Decision Journey

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More specifically, how do you use social media services to inform or educate yourself on financial topics and financial companies/institutions? Top 8 uses of social media for financial purposes (on any network) shown

BASE SIZE: 71 HNW individuals who use social media for financial information

37%

32%

32%

31%

35%

34%

28%

39%

Follow companies

Use as a source for news/content

Subscribe to financial related feeds/blogs

Follow a recognised industry expert/executive

Read reviews/recommendations

Search for a key top or info

Watch webcasts

Participate in online polls/surveys

DISCOVERY

CONSIDERATION

ENGAGE

VALIDATE FINANCIAL DECISIONS THRU THEIR SOCIAL GRAPH

30% of HNWI

Use of social media for financial purposes by network

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Most frequently mentioned uses of social media for financial information

BASE SIZE: 47 Facebook; 27 Twitter; 17 YouTube; 31 LinkedIn; & 19 Google+ users who access the network for financial purposes

USES FOR FINANCIAL INFORMATION ALL OTHER SOCIAL MEDIA SITES

Use as a source of news content 48% 48%

Follow companies 42% 33%

Search for key financial topics/information 45% 29%

Read reviews/recommendations 35% 19%

Participate in online polls/surveys 52% 33%

Receive updates from financial services companies and/or experts 37% 24%

Follow a recognised industry expert/executive 45% 14%

Over a quarter of HNWI deem social media to be a valuable resource/tool for discovering and informing making financial decisions

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To what extent do you agree or disagree with the following statements? Total Top2 box scores shown; ‘Strongly agree/agree’

BASE SIZE: 57 Affluent; 64 Ultra Affluent; & 30 Über Affluent HNW individuals

30% Social media offers me the ability to validate my

financial decisions

26% I find myself relying more and more on social media

to help inform financial decisions

26% I have greater trust in

financial companies who are more engaged on

social media

23% Social media has

made me much more confident in my ability

to make financial decisions on

my own

25% Social media has made

me much more confident in my ability to make financial decisions

on my own

To effectively engage with HNWI provide them with “bigger picture” information – macro content

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If a financial services provider were to use social media to provide you with information relating to personal finance, what types of information would you expect to receive from them? Top 8 types of financial information expected to be received from financial providers shown

BASE SIZE: 151 HNW individuals

42%

37%

37%

36%

35%

34%

32%

27%

Market and economic commentary

New product information

Company background

Finance events

Expert ratings, reviews, or testimonials

Best practices, how-to guides, checklists

Product performance updates

Thought leadership articles and stories

Over a half have taken action as a result of reading financial content on social media

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Which of the following actions, if any, have ever occurred as a result of you hearing or reading something on social media? Top 5 actions resulting from social media usage shown

BASE SIZE: 151 HNW individuals

20% Conducted additional research on a financial product/policy or account type

02

17% Purchased an investment product

05

19% Asked a financial professional for additional information about a financial product/policy or account type

03

17% None of the above

24% Learned about a financial company/institution I/my company was not previously aware of

01

17% Learned of a financial product/policy or account type I/my company was not previously aware of

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Putnam Investments Financial Advisors’ Use of Social Media (2013)

Profile of Financial Advisor who uses Social on a regular basis

16 Putnam Investments Survey of Financial Advisors’ Use of Social Media (2013).

Fee-based independent broker/dealer

Uses social media to build referral network, brand, and relationships

10+ years of experience

Typical assets from new social media client: <$500K

Book of business: <$150M

Typical client portfolio: <$1M

3 out of 4 use Social for business, with over 95% leveraging LinkedIn

17 *Response=305 advisors Putnam Investments Survey of Financial Advisors’ Use of Social Media (2013).

of financial advisors use at least one social network for business*

75%

21% 31% 29% 95% USED IN THE PAST YEAR FOR BUSINESS PURPOSES

Social media compliments current business practices offering scale and efficiencies

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Top uses differ by network

Putnam Investments Survey of Financial Advisors’ Use of Social Media (2013).

Iprove the effectiveness of referral network

Cultivate specific prospective clients once

they are identified

Enhance current client relationships

Of LinkedIn users use it to prospect for new

relationships

66% Of Facebook users use it to sustain relationships

69%

Half of respondents cited gaining new clients via social

19 Putnam Investments Survey of Financial Advisors’ Use of Social Media (2013) Conducted in partnership with FTI Consulting: Survey conducted by FTI Consulting Strategic Communications in July 2013 among 408 U.S. – based financial advisors. Data sources: FTI Consulting Strategic Communications financial advisor panel and Harris Interactive

NO YES 62% 38%

Corresponding gain in assets under management from new clients

2% 5% 5%

20% 20%

42%

More  than  $25MM  

$10MM  to  $25MM  

$5MM  to  $9.9MM  

$1MM  to  $4.9MM  

$0.5MM  to  $0.99MM  

Less  than  $0.5MM  

$1M+: 32%

$5M+: 12%

Has your use of LinkedIn helped you gain new clients?

Of advisors acquired new clients 49%

29% Of those, . Gained $1 million+ in new

assets

Top 3 Forms of Content Desired: Commentary/Market Insights, News and Content to Share with Clients

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What are the top three types of information or content you want to receive from asset managers via social media?

59%

58%

51%

37%

33%

14%

9%

9%

Commentary / market insight

Market news

Educational content to share with clients

New product information

Advisor practice ideas

Webinar notification

Portfolio

Other

*Based on 60% scale

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RELEVANT CONTENT BUILDS THE BRIDGE TO MEANINGFUL RELATIONSHIPS

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\ 482,514 3,369 1,972

Share 12K Send a message 6 More

engagement with content vs jobs x

Content is our core

Content is Our Core Definitive professional content publishing platform

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Mike Smith President and Chief Executive…

Mike Smith CEO, ANZ Bank

John Taft CEO at RBC Wealth Management

Peter Sands Group Chief Executive, Standard Chartered Bank

Sergio Ermotti Group Chief Executive Officer at…

Jamie Dimon Chairman & CEO at JPMorgan Chase

Mohammed El-Erian CEO of Pimco

Larry Fink Chairman and CEO, BlackRock

Mark Mobius Executive Chairman, Templeton…

Fred Tomczyk President and CEO, TD Ameritrade

75+ CEOs serve as Influencers

#inFC14

Client Case Studies

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#inFC14

Blackrock case study

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Blackrock

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FINANCIAL ADVISORS BLOG

HNWI FINANCIAL ADVISORS

HNWI

YOUTUBE LINKEDIN

BLOG FACEBOOK TWITTER

Steps To Publishing & Promoting On LinkedIn

REACH DESIRED AUDIENCE WITH SPONSORED UPDATES

3 PUBLISH CONTENT AS COMPANY UPDATES

2 BRAND’S COMPANY PAGE

1

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Influencers

LinkedIn Ecosystem

COMPANY PAGE FOLLOWERS

UPDATES TO FOLLOWERS

SPONSORED UPDATES

INFLUENCERS

Dimensions of Thought Leadership

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THOUGH LEADERSHIP

SOLUTIONS, CASE STUDIES, HOW-TO, EVALUATION TOOLS

PRODUCT, SERVICE, OFFERING COLLATERAL

BRAND ADVERTISING AND MESSAGING

THOUGH LEADERSHIP

SOLUTIONS, CASE STUDIES, HOW-TO, EVALUATION TOOLS

PRODUCT, SERVICE, OFFERING COLLATERAL

BRAND ADVERTISING AND MESSAGING

C O N T E N T M A R K E T I N G

What BlackRock has found…

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Audience wants, needs, hopes and desires should be “North Star”

Express your view – not me too!

Show me the data – power of visuals

Use the biggest name you got (judicially)

Seek new audiences with different content

Find an Advisor Ad Campaign

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Find An Advisor API Solution

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Find An Advisor API Solution

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