Ortec Finance: Social media a negative impact on many wealth managers

Ortec Finance: Social media a negative impact on many wealth managers

4 juli 2024

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Algemeen (31) dilemma vraag kwestie probleem

Social media has a negative impact on many financial advisers and wealth managers themselves and hampers their ability to give sound professional advice to clients.

‘Wealth managers and financial advisors are influenced by social media activity around the stock market and stocks and it is making it harder for them to give professional advice to clients,’ Ortec Finance concludes today form own research. ‘Almost all, 95%, questioned in the study with wealth managers and financial advisors whose organizations collectively manage approximately £ 1.207 trillion said they are influenced by social media activity around the stock market and stocks. Of these, more than eight in ten, or 82%, say they are becoming more influenced by it, and more than one in ten, 13%, are very influenced by it. Just 4% say they aren’t particularly influenced by social media activity around the stock market and stocks and only 1% say they aren’t at all influenced by it.

More than nine in ten, 93%, wealth managers and financial advisors believe that social media noise around the stock market and specific stocks makes it harder for them to give professional advice to clients because of how clients react to this noise or the impact it has on advisors and wealth managers.’

‘Despite the many benefits that social media brings, our research shows that the noise around it is a hindrance to many financial advisors and wealth managers. With particularly the younger generation increasingly turning to social media as their source of information for everything from politics to DIY, they’re also using it as a source of financial advice. However, our research shows that social media is having a negative impact on many financial advisers and wealth managers themselves as well as hampering their ability to give sound professional advice to clients.’

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