Guidelines for Succeeding in Social Media Marketing for the Financial Sector

The financial services industry is extremely fast-paced. The average annual growth rate for the sector is 31% because to the fact that businesses are realising the benefits of having an online presence.

However, it’s not straightforward to do online marketing for money matters across many different platforms. Rules and restrictions abound.

It is essential to keep up with the news while investing, as the markets may be influenced by everything from political tensions to Trump’s tweets.

As the head of a financial services marketing business, it is my responsibility to keep abreast of the ever-changing social media guidelines and regulations.

Now you know the secrets to success in social media for the financial services industry.

Adhere to the Rules

You can’t make it in the financial services industry on social media without following the rules.

There is a lot of competition in the financial services industry on social media.

Both MiFID II and CySEC are committed to protecting investors, and MiFID II mandates the secure storage of sensitive customer data. Since a lot of information is shared on social media, the archiving requirements of MiFID II and FCA are particularly important.

Marketing materials must also be “fair, unambiguous, and not misleading” under MiFID II. The General Data Protection Regulation (GDPR) mandates that customers provide their affirmative authorization before their data is used in any way different than what was first intended.

Realize the Impact of User-Interaction

Sixty-five percent of respondents to a KPMG survey said they would never consider working in finance because of the monotony of the field. Consumers mistakenly believe this myth and thus associate financial services firms with dull content.

Your social media campaign should be able to dispel this stereotype.

Audience participation is facilitated via interactive content such as Ask Me Anything (AMA) sessions on LinkedIn, question sticker posts on Instagram, and Twitter polls. According to marketers, interactive content is 93% more likely to keep a reader’s attention than static information is. Financial services may be made more interesting with the use of interactive material, especially when paired with visual representations of the products being offered.

Methods for Effective Use of Social Media in the Financial Sector

Improve brand recognition with less emphasis on hard sell language. Public relations (PR), events (e.g., seminars), and new product launches (NPD) all fall under this category. You won’t have to do any humblebragging if you document your achievements using video and still images.
Highlighting your company’s dedication to its employees, the local community, and other people is an excellent way to humanise your business.

Take Advantage of Recommendations and Social Proof

Mistrust is a major problem in the financial services industry, along with regulation and compliance. Brands in the financial services industry have a hard time gaining customers’ confidence. As a result, you should prioritise social media efforts that foster credibility and connection with your target demographic.

The rise of social proof may be traced to the increasing credibility of user evaluations over official product descriptions provided by manufacturers. The majority of internet shoppers (about 70%) read reviews before committing to a purchase.

An excellent illustration of the effectiveness of social proof is RobinHoodApp, an online trade enterprise. Before even launching, the firm had had amassed 1 million referrals. More others joined up after seeing how many others had already done so.

Endorsements are huge business, as 49% of social media users rely on influencer recommendations to help them make a purchase choice. As a matter of fact, by 2020, influencer marketing will be a $10 billion business. Be wary of squandering time and resources by not providing your audience with genuine influencers.

Micro-influencers have a higher credibility with consumers than do macro-influencers. Micro-influencers are seen as more important by their audiences and receive seven times as much engagement as macro-influencers.

The low cost of using micro-influencers is another advantage. On Instagram, 97% of branded posts by micro influencers cost less than $500, whereas those by mega influencers often cost $75,000. Microinfluencers are so effective that even major financial companies like American Express use them. By including food, a topic that most people care about, the business was able to boost its reach and engagement through the use of micro influencer marketing.

Methods for Effective Use of Social Media in the Financial Sector

Connect with genuine influencers that can articulate your brand’s values in the same language as your target audience.
To boost product engagement and generate FOMO among social media users, leverage social proof.
Your content doesn’t have to be only about business and sales. Consider not only the immediate advantages your product provides, but also the broader problems it solves or lifestyles it facilitates.

Contests should be run

Having contests is a fantastic method to gain new fans. But how do you enjoy these kind of gatherings while navigating a highly regulated industry? Losses may be avoided, and legal compliance can be maintained, with some forethought and preparation.

The MiFID II regulations require that you preserve records of all contest submissions and correspondence.

In addition, if your rewards are over a specific threshold, you may be required to submit additional paperwork in your jurisdiction.

When hosting a contest on a social media platform, such as Facebook or Twitter, it is imperative that you adhere to all applicable laws and standards.

Facebook is a major platform for contests, so it’s important to study up on the site’s regulations. Particularly notable are the contest’s…

Clearly stating that Facebook is not the sponsor of the contest you are hosting.
Not allowing for any type of customer appreciation. Consideration can be in the form of a person’s name and email address in some regions. You need to be familiar with the legislation of the country or countries you plan to hold your competitions in.
There should be no ambiguity about who is organising the contest, how long it will run for, who will choose the winners, or what the awards are.
Warnings about potential dangers should be prominently shown, the prize should be described, and content limitations should be taken into account at all times.