Spectrem’s quarterly series of reports on ethnic investors help advisors and financial providers find out more about their investor clients based on their ethnic background.
Using Social Media and Mobile Technology in Financial Decisions, the second report in the Ethnic Segmentation Series, shows how investors of different ethnic upbringings use social media and the latest in mobile technology.
The use of the social media site Facebook among ethnic investors is widespread. Exactly two-thirds of all African-American investors are on Facebook, a percentage that is higher than the usage of the general population of investors (57 percent). Sixty-two percent of Hispanics are on Facebook, while only 55 percent of Asian investors use the most popular social media site.
On almost all social media sites (Twitter, LinkedIn, YouTube, Instagram), usage is higher among African-Americans and Hispanics than among the general population. Asians are usually a bit below the general population in social media usage.
African-American investors also report the greatest intent to increase their social media usage. For instance, 22 percent of African-American investors said they plan to increase their visits to LinkedIn (the general population reported only 13 percent planned to make more use of LinkedIn.)
Twitter usage is unique because it allows users to “follow’’ other Twitter users, and that includes financial commentators and their own financial advisors. While only 20 percent of the general population of investors follow financial commentators on Twitter, 33 percent of Asians do so, as do 27 percent of Hispanics and 24 percent of African-Americans.
Advisors should note that among the ethnic investors who do not use social media, concern over privacy is the overwhelming reason. Sixty-six percent of Asians and 60 percent of Hispanics who do not use social media cite privacy concerns as one of the reasons.
Communicating with financial advisors through social media is difficult due to federal regulations on financial professionals. But 19 percent of African-American investors, 15 percent of Hispanics and 14 percent of Asians say they have used texting to communicate with their advisors, as mobile technology makes all forms of communication easier.
Ethnic investors report a great interest in the use of video in accessing financial information. While 35 percent of the general population of investors report viewing financial videos online, 47 percent of Asians do it, 44 percent of Hispanics watch finance-related videos and 36 percent of African-Americans visit financial websites to watch information video.
Ethnic investors are also more likely than the general population to own smartphones. Eighty-four percent of Hispanics, 80 percent of African-Americans and 72 percent of Asian investors own smartphones, while only 68 percent of the general population of investors do so.
To read more on the Ethnic Segmentation study, click here