Are You Friends with Your Financial Advisor?

Would you want your financial advisor to friend you on Facebook? People may think of that as a connection better reserved for LinkedIn–where most social media users maintain their professional relationships—and I used to agree. However, I came across on article on that may have changed my opinion…

Many professionals, including myself, use social media as a way to share their thoughts and opinions with others, discuss new platforms, services and trends and more. However, where is the line drawn between professional and personal?

The WSJ article highlighted the growing trend of financial advisors who connect with clients on personal social platforms, like Facebook, in addition to characteristically “professional” platforms like LinkedIn. These FI’s feel they can serve their clients better and create a stronger bond by knowing more about their personal life. For example, your FI might find out that you want to build or purchase a new home and modify their investment plans for you as a result. They may also realize mutual interests that you share.

Another benefit to financial advisors who connect with clients on personal social media platforms is the ability to draw in younger clients. The old ways of cultivating relationships (golf outings, lunches, etc.) don’t necessarily work with Gen X or Y, but having conversations on Facebook or Twitter may help forge that connection.

While many people may feel wary of letting their FI view their family photo albums or personal status updates on Facebook, there could be some benefits, and it remains to be seen whether this will be a successful way to retain current clients and attract new clients.

However, with all of that said, would you want to be friends with your financial advisor?

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