High Net Worth Individuals in the UKSeeking Investment Inspiration on Social Media

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The investment world as we know it is being reshaped.

A big shift is underway when it comes to wealth management – it’s not just the mass affluent that are turning to social media channels to discover information and make investment decisions. In the UK, High Net Worth Individuals (HNWIs) are increasingly tapping into their social networks for guidance.

If you market to these individuals, this should spark your attention. After all, in the UK, the total number of HNWIs increased by over 13% between 2012 and 2013 to reach a total of 527,000, representing a total wealth of USD$1.9 trillion (equivalent to approximately £1.2 trillion GBP).1 Moreover, the number of ultra HNWIs in the UK is forecast to grow 18% between 2013 and 2023, from 10,149 to 12,015.2

Key Findings

This eBook shares insights we gleaned by surveying HNWI – that is, those holding over USD$1 million (equivalent to approximately £650 million GBP) in personal investable assets -- who use LinkedIn and other social media channels. We found that HNWIs in the UK increasingly rely on digital and social channels to inform their financial decision-making:

• 70% of HNWIs in the UK use social media

• 61% use social media networks for at least one financial purpose

• 70% access social media via mobile devices

• 71% access LinkedIn several times a week

• 42% of HNWIs under 45 years of age feel their wealth managershould be active on social media3

HNWIs in the UK are increasingly engaging with social media for financial

purposes – representing a significant opportunity for finance marketers to

build relationships. For financial advisors and firms serving these investors,

the opportunity is clear: build relationships with HNWIs on social media

by providing the helpful content they seek on the channels that are most

trusted for investment information. That said, to stay relevant, trusted,

and connected with this audience, it’s critical to understand their unique

behaviours and expectations.

Read on to better understand how financial advisors and services firms in

the UK can tap into this opportunity.

1Capgemini Financial Services Analysis, 2014 2Knight Frank Research, The Wealth Report, 20143Ledbury Research, Young Wealthy Segment Report, 2014

Using Social Media as a Critical Tool in the Decision-Making Process

HNWI WEALTH IN UK:

USD$1.9TR(equivalent to approximately

£1.2 trillion GBP)

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Even though the UK population of HNWIs is relatively small (527,000 in

20134), it grew by over 13% between 2012 and 2013. LinkedIn research

found that the uptake of social media – and LinkedIn in particular – for

investment-related information is growing rapidly among this group. This

is backed by Ledbury Research, which found that among HNWIs in the

UK, newspapers (including online versions), radio, and TV are becoming

less favoured sources of financial information. Instead, websites and

online forums are supplanting these traditional sources.5

In other words, social media in general and LinkedIn in particular are

emerging as key information resources for HNWIs in the UK. 70% are

engaged on social media and access this channel via mobile devices.

This conforms with research from the Ledbury UK Millionaire Omnibus,

which found 75% of HNWIs in the UK use at least one social media

platform.

Over 50% of HNWIs in the UK use LinkedIn, which is more than their use of

any other social media site and more than LinkedIn usage in the

U.S. In fact, 71% of HNWIs in the UK access LinkedIn several times a week.

Again, this is in line with findings from Ledbury Research, whose research

shows that on average, this population uses two social media platforms, with

LinkedIn the most used of the major platforms.

70% of HNWIs in the UK Engage in Social Media

4Capgemini World Wealth Report, 2014 5Ledbury Research, Client Landscape 2014 Report

Fact: Majority of HNWIs in the UK turn to social media and access it via mobile devices. Opportunity: Optimise your content on LinkedIn for mobile consumption.

Usage of social media - by country

Social media users LinkedIn users

100%50%0%

U.S.

UK

AU

CA

HK

U.A.E.

SG

69%

39%

50%

49%

45%

73%

46%

40%

99%

98%

97%

85%

70%

75%

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Top Reasons for Using Social Media

While 91% of HNWIs in the UK are over the age of 45, 38% of them work

full-time and 23% are self-employed. These business professionals use

social media for the following reasons:

• Connect/reconnect with colleagues

• Read updates/posts and stay up-to-date with colleagues and friends

• Follow experts, influencers, companies and brands

• Receive timely updates relevant to their jobs/industry

61% of HNWI in the UK on social media use these networks for at least one

of these financial purposes:

• 53% keep up-to-date with current financial trends

• 48% gather preliminary information about financial productspolicies or institutions

• 33% re-evaluate a financial decision that has already been made

• 30% recommend a financial product, policy or service

HNWIs in the UK under 45 years of age are more at ease with financial

services firms that use social media. In fact, around 42% of them feel their

wealth manager should be active on social media.6

6Ledbury Research, Client Landscape 2014 Report

Fact: 61% of HNWIs in the UK use social media networks for at least one financial purpose. Opportunity: Establish a presence and provide the financial information HNWIs are seeking.

Do you use the following social media sites/services? - by age

% of HNWIs under 45 years of age – by country

U.S. UK AU CA HKU.A.E. SG

83%80%

59%

16%13%9%

5%

Social media users LinkedIn users

25-34 45-5435-44 55-64 65 and over

99%

49%

94%

54%

89%

53%

76%

51%

66%

36%

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Trusting LinkedIn for Financial Information

Of all the social media networks they turn to, HNWIs in the UK place the most trust in LinkedIn as a source for financial information.

Ledbury Research provides more insight into this finding, as they found that HNWIs in the UK primarily use LinkedIn to communicate

with professional contacts and build professional networks. Moreover, it found that one in four HNWIs follow financial and investment

industry thought leaders on LinkedIn.

Fact: Of all the social media networks they use, LinkedIn ranks highest in terms of a trusted source for HNWIs in the UK. Opportunity: Build brand reputation and cultivate interest on LinkedIn.

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LinkedIn is the most trusted source for financial information

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Fact: HNWIs turn to social media throughout the financial decision journey. Opportunity: Provide information at every stage.

Social media serves the following purposes throughout the HNWI

financial decision journey:

Seek advice or information to help make an investment decision

Gather information about investing, products, and companies

Share a personal experience with a financial product, service, or company

The influence of social media among the affluent audience is set to

increase. 29% believe social media is influential when forming

opinions about financial products/services, and 1 in 4 believe social

media will become more influential over the next 12 months.

This comes at a time when 73% of HNWIs in the UK report being

optimistic about the general investment environment over the next

12 months, according to Ledbury Research’s Client Landscape 2014

report. Compare that to the 44% who reported optimism in 2013, and

22% in 2012. This is a continuation of a trend, with the percentage more

than tripling since 2012.

HNWIs in the UK are showing that optimism by increasing the ratio of

their wealth allocated to riskier asset categories, such as alternative

investments and stocks and shares. According to Ledbury Research,

the percentage of stocks and shares in the average HNWI portfolio

has risen from 15% to nearly 18% in the last year, while alternative

investments comprise 4% of portfolios.

Shaping Opinions and Influencing Decisions

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Marketer Implications: Capitalise on the Trusted LinkedIn Platform

Social media is playing an increasingly critical role as HNWIs in the UK consider their investment options. While financial

advisors in the UK have been slow to adopt social media, they clearly have much to gain by allocating more of their focus and

online budget to engaging HNWIs in these channels.

With high mobile usage among HNWIs in the UK, content must be snackable and easy to consume. Use Sponsored Updates on LinkedIn to deliver content directly within the mobile feed.

Develop content for mobile.

Develop content that is relevant by stages in life and in the financial decision journey and utilise LinkedIn’s precise targeting to reach exactly the right audience. Keep in mind the content HNWIs seek on social networks: financial trends and preliminary information about financial products policies or institutions.

Ensure relevance through targeting.

One of the most desired types of content is preliminary information about financial products. Make sure you’re delivering the information HNWIs seek.

Highlight new products.

Specifically, firms can impact their top lines by doing the following:

Build relationships with the younger HNWIs.

42% of HNWIs under 45 years of age feel that their wealth manager should be active on social media. Ensure your brand is always front of mind by developing a content marketing strategy focusing on serving thought leadership, industry analysis and product updates on LinkedIn.

Ready to engage with HNWIs on LinkedIn?

Visit http://lnkd.in/contact