Consumers increasingly using social media to find an IFA

Whilst there has been a marked increase in the number of IFAs using social networking websites, many don’t believe that their clients do.

A survey of IFA attitudes to the sites found over 95% of IFAs do not ask clients about their use of the Internet as part of their fact finding activities, and so have no idea which of their clients use social networking websites and who might be open to web based communications.

In a recent study, the fastest growing demographic on Facebook was shown to be females aged 55-65, followed by males aged 45-54. This contradicts many IFAs' assertion that social networking websites such as Facebook are just for the younger generation and would have no place in their marketing strategy.

IFA Life believes consumers' use of social networking sites has important implications for IFAs, as financial advisers can build their brand in online communities. Consumers also now use social networking sites as a resource to find IFAs.

Philip Calvert, IFA Life founder, said:
"After Google and traditional search engines, consumers turn next to social networking sites and online forums to search for IFAs. Whereas a search on Google will return a variety of websites that people can visit, a search on a social networking site will result in real people responding with personal recommendations and reviews - often within seconds."

"Consumers are talking amongst themselves on social networking websites about product and service providers of all descriptions. This includes IFAs, so the financial advice profession needs to work extra hard on being seen as credible, helpful, trustworthy and professional online. This means that IFAs now need to think far beyond simply having a ‘brochure website' to get found online."

According to Philip Calvert, 30% of IFAs now having a Facebook account, compared to less than 10% twelve months ago.

However, Calvert cautioned both IFAs and Providers using social media not to run before they can walk, as personal and brand reputations can be damaged through poor online communication skills.