Can Social Media help IFAs battle new competitors and the effects of the upcoming Retail Distribution Review?
In January 2013, the Retail Distribution Review (RDR) will take effect, banning independent financial advisers (IFAs) from receiving commissions from financial services companies, opening up a radical change to the industry. For the first time, IFAs will need to collect fees directly from their clients.
The rules could not come at a more competitive time in the industry.
It is likely that IFA’s will prefer to deal with wealthier clients to achieve higher consultancy fees, leaving the general public with and increasing knowledge gap and no obvious place to turn for independent financial advice.
So what can financial services companies do to engage directly with their customers? Social Media can help, and here's how.
9. 68%of the Facebook audience are between 18-44, compared to 45% of the general population UK Population Facebook Population Source UK: Office National Statistics Source Facebook : Social Bakers
10. And social users are actively using the social conversation to influence their purchase choices Has social influenced your buying decision? Source: econsultancy.com
11. And which buying decisions are most influenced? 43% Bought financial services as a result of a recommendation via social networking friends 26% Bought clothingas a result of a recommendation via social networking friends 25% Bought flights/car hire/ hotels as a result of a recommendation via social networking friends Source: Moneyfacts.co.uk “Social media used to choose financial services” March 2010
14. Social is where PR, marketing, product and customer service all collide, in public
15. Don’t treat social media like a marketing channel but a businesscommitment to conversation with customers
16. Real or not?This un-moderated activity is damaging the NatWest brand #FAIL
17. Lloyds TSB broadcast some advice well on YouTube but offer a game on Facebook rather than conversation #FAIL
18. Morgan Stanley invested hugely in an integrated online and social platform But forgot their customers were time poor and really wanted a mobile application #FAIL
19. SUCCESS IS A CONSISTENT USER EXPERIENCE WITH CHANNEL AGNOSTIC STORYTELLING
20. You need buy-in right from the top to bring together the experts from across the business
21. first direct use social transparency to prove their business model works
26. Wonga.com is a very simple offering, yet to be tested measuring long term risk.But...
27. “Think, where else do speed, convenience and transparency interest the consumer banking customer? So our vision is bigger than short-term loans.“ Errol Damelin, founder Wonga.com
28. Aggregators are using branding to forge strong customer relationships 3.2m Video Views 50k Twitter Followers 785k Facebook Likes Price comparison sites earn over £650m a year in commission Source: YouGov 2011
29. Judgement Four# It is time for the traditional providers to reclaim their market