Join Jay Palter and I on Between Sessions. Jay came up with a great name to represent the discussions and topics that come up so often at events and meetings in “between sessions” of this agendas.
At the core Between Sessions is an exploration of the digital business model in financial services. We consider the technology, marketing, compliance and more in investigating how our industry is evolving in this new digital era.
Today’s Rundown and YouTube Surprise
Affluent & High Net Worth Investor Use of Social Media
We kicked off discussing a #infographic discovered by way of last week. It studies the use of social media by mass affluent and high net worth investors. In our view – a couple insights from this.
YouTube Tops the List
- YouTube tops the list of most used social channels for interacting with or research financial advisors by those investors. Blane’s theory is it is the one social network you can do a deep dive into an individual or firm’s content, opinions and overall brand without connecting and being visible to them.
- That theory reinforces two of Jay’s tenets about social media – is that sales has been extended from the sales force and traditional sales content to anyone representing you and your brand online – i.e. – you likely never know when your making the first impression. It also supports the need to be fully aware of your reputation online. Look at yourself and what your audience sees so you know what they are consuming .
- In looking at obstacles to using social media – compliance is a weakening argument for not getting into the channel as the rules are less a mystery from a regulatory perspective. That sounds more like an excuse now.
- The biggest barrier to entry was reported as time – meaning advisors don’t have enough of it to allocate for digital communications and marketing. Our take – make time – this is a shift in how business is done and that also means changing your rhythm and itinerary for your working weeks.
What is Fintech?
Next we shifted to one of our favorite voices on the evolution of financial services –. Chris regularly focuses on the challenges of legacy organizations to join the 21st century and meet consumer demands for mobility and digital services in banking. Recently he had a discussion around Fintech (short for financial technology – but as you’ll see from his article – not necessarily meaning what we think).
“What is fintech” points out:
– distinction between emergent (disruptive) and traditional (facilitating)
– emergent/disruptive fintech actually creates new markets, rather than simply help existing markets do better
You can explore Fintech on Twitter via the hashtag #fintech.
Unbanking of America
This also segues into some thoughts on complete disruption of our common protocols for banking, lending, investing and more. See http://techcrunch.com/2014/06/29/startups-and-the-un-banking-of-america/ via Rebecca Lynn.
Lynn’s “unbanking of America” article gives some examples:
– for example, crowdfunding doesn’t just mean there’s another lender, it means there is a new model for lending (peer-to-peer) without the balance sheet risk of traditional lending
– and what about a digital tech giant, like Amazon or Google or Facebook; when they start selling financial products, are they just a new finserv vendor or a completely new category?