February 7, 2011
Financial services are using social media to reach prospects. Mutual fund firms as a whole have lagged behind other industries when it comes to the adoption of Twitter for marketing purposes. This is for a number of reasons. Primarily, compliance concerns have affected adoption – mutual fund firms are not allowed to tweet anything that could be misleading or unsuitable for the intended audience. Additionally, many have trouble relaying serious information over a channel that is largely designed for casual or fun communications.
However, recent data collected by Corporate Insight, a consulting services company, reveal that mutual funds are slowly beginning to incorporate social media into their broader marketing mix, the Wall Street Journal reports. Nearly half (46 percent) of the asset management firms polled by the company are now communicating via social channels. While that lags behind other financial sectors, such as the credit card industry (measured at a 76 percent usage rate), mutual fund firms have show a significant uptake since 2008.