Even with regulatory watchdogs barking, social media platforms like LinkedIn, Facebook and Twitter are becoming popular among financial professionals, suggesting institutional efforts to govern use is behind user adoption.
According to a survey by Horizon Cash Management of hedge fund managers, financial services providers, managed futures funds professionals and brokers, 82% were at least somewhat familiar with social media, with 55% using sites professionally and personally.
LinkedIn was the most popular site among the business elite, cited by more than 80% of users; Facebook was second at 64%; followed by Twitter at 33%; YouTube at 29% and personal blogs at 22%.
Also, 60% of respondents say they use social media to collect business information or intelligence for professional use, and 75% of those who use it for personal use say they do so to keep in touch with friends or family. Of those currently using social media, 61% said they expect to expand their usage over the next year.
FINRA has offered guidance regarding the use and storage of social media communications, reflecting a growing concern among many professional that the informal nature of some social media sites can cross real boundaries into what constitutes advertisements, sales literature, endorsements, testimonials and public appearances.