A study by Pershing Advisor Solutions claimed that although many financial firms have been reluctant for their advisors to embrace social media, executives who have utilised the new technology have seen âsignificantâ growth in their business.
Social media has been used to research new ventures, create greater business awareness and assist professionals in standing out from their competition, the research claimed.
Up to 20 per cent of the advisors questioned said they had increased revenue from their existing customer-base through use of social networking.
Mark Tibergien, chief executive officer of Pershing Advisor Solutions, said: "Social media is a juggernaut, and registered investment advisors (RIAs) can't afford to dismiss the opportunity it affords them to engage clients and enhance their visibility with prospects."
He added that despite the benefits of the new technology, financial advisors also need to be aware of the risks - âregulatory and otherwiseâ - of utilising the tools.
LinkedIn was found to be the most popular with more than half of the respondents that said they used social networking sites.
The study questioned almost 150 US-based RIAs on how they utilise social media technology in connection with their business.
By Jim Ottewill