Fund Management & Social Media: Paving the Unfinished Path – Part 1

For a quarter of 2010, I have been using this blog to discuss the issues of the day in the financial services world, and while I have covered everything from XBRL to the Census, one topic that I have yet to explain is why I have been participating in this medium of “blogging” and “social media.”

I have found that my answer can best be explained from both the number and type of questions I have heard from colleagues, especially fund industry veterans:

“Using Social Media for Funds? Isn’t that kid’s stuff?”
“What’s the value?”
“Isn’t that a FINRA nightmare?”
“What’s the cost to initiate?”
“Who else is doing it?”
“Where does one begin?”
“Who can I turn to for expertise?”

All of these questions have the underlying makings of simply not having enough information, rather than a conclusion based on expert analysis, and in my experience, this means that there is the potential for something big to happen.

As someone that has more than two decades in the marketing world, I look at it this way. Social media hit the mainstream with social networking sites, which were created as a fun way for young people to create their own community, bolster existing relationships and begin new ones. When explained like that, doesn’t it sound like the type of market research that corporations have spent a fortune on throughout the years? But wait…there’s more! How about the fact that social media, when applied properly, can provide measurable, real-time feedback as to consumer needs and preferences?

Eureka!

The reasons for hesitancy in the corporate world are simple, but perhaps misstated. While new news on social media comes out every day, the items that get the most traction are those that are cloaked in controversy and conflict. Privacy, stalking, identity theft, etc., and while these issues are worthy of being taken seriously, the percentage of people that have gone their entire cyber-lifetime without having to deal with anything like this is vast.

Social media is very much in the “wild west” stages of its evolutionary process, meaning that there is an “anything goes” approach for those involved, with very few rules until a proven model(s) is discovered, and that is when the sheriffs will be deputized to enforce law and order. Already though, social media exploration has become littered with the carcasses of “marketing bison” that have just “followed the herd” in exploring this new frontier because that is what they have always done. However, in this case, basing their exploration philosophy on precedent has caused them to miss the watering hole completely and are now withering under the sweltering sun.

In other words, for those in the financial services industry that believe as I do in the potential of social media, the time is now to find the right trailblazer that can guide you down the path. It just so happens that I have found that trailblazer in an old friend and Investment Management Consultant Paul Stamler and a new organization called Make Me Social.

In Part 2 of this blog, I will describe what I feel are the necessary components for choosing the right people in this field and why that has led me to this endorsement.

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Tony Anzivino hails from the greatly misunderstood state of New Jersey. He's worked in Financial Shareholder Communications world from the age of 12, starting with Janitorial duties at his Father's firm. He likes biking, hiking and ketchup.