- More than nine in ten (93%) wealth managers and financial advisors feel that social media noise around stocks makes it harder to give professional advice to clients
- Almost all (95%) say they are influenced by social media activity around stocks, study finds
London, July 4 2024 – New global research* from Ortec Finance, the leading global provider of risk and return management solutions for professional investors, shows that 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.
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 (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.
Tessa Kuijl, Managing Director Global Wealth Solutions at Ortec Finance said: “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.
Ortec Finance provides wealth managers and financial advisors with scalable solutions that enable them to manage clients more efficiently and deliver more value to those clients. Its OPAL Planning tool supports banks, advisors and wealth management firms to translate client’s financial goals into an optimal investment strategy – providing forward-looking insights into whether clients are on-track regarding their investment objectives. Together with a fully integrated cash flow planning tool for a holistic view of the client situation, the OPAL Planning tool addresses both income and investment risk. Find out more: https://www.ortecfinance.com/en/insights/product/opal
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Notes to editors:
*Independent research company PureProfile interviewed 100 wealth managers and financial advisors located in the UK, Canada, Italy, the Netherlands, Germany and Switzerland whose organizations collectively manage around £1.207 trillion worth of assets for clients. The survey was conducted during April 2024.
For more information, contact:
Phil Anderson, Perception A.
phil@perceptiona.com / +44 7767 491 519