use of mobile technology, tablets, online tools and social media … · 2014-09-04 · demographics...

© 2014 Spectrem Group. All Rights Reserved 1

2013 Mass Affluent Investor

Use Of Mobile Technology, Tablets, Online Tools and Social Media The Ethnic Segmentation Series

The Ethnic Segmentation Series

Using Social Media and

Mobile Technology in

Financial Decisions

• Personal Wealth

• Investing

• National Concerns

• Personal Concerns

• Retirement




Table of Contents

• Introduction

• Social Media Use

• Social Media and Financial Decisions

• Technology Preferences of the Investor

• Technology and Financial Communications

• Implications

• List of Exhibits



Use Of Mobile Technology, Tablets, Online Tools and Social Media The Ethnic Segmentation SeriesThe Ethnic Segmentation Series

Introduction




Introduction

The ability to effectively communicate with investors is changing rapidly. As investors

begin to increasingly rely upon social media and mobile technology for most of their day-

to-day information needs, it is critical for financial providers and advisors to meet their

information and service needs through the channels and platforms preferred by the

investors. This report focuses on investor preferences segmented by ethnic background.

This analysis will identify specific concerns of investors based upon their ethnicity as well

as their likelihood to use specific channels.

Almost all investors are currently using social media. Social media, however, is not

currently being used for financial information or for financial transactions. This is due to

the fact that compliance concerns have limited the ability and the likelihood of financial

firms to use social media. As the compliance concerns become clarified, expect to see

an increased usage of this channel for multiple financial issues. Facebook, LinkedIn,

Twitter and other social media platforms are slowly beginning to be used by financial

firms and by financial advisors. Additionally, increased amounts of information are

becoming available from financial institutions. Financial firms and advisors need to

develop strategies to effectively use these forums.

Mobile technology is also changing the way investors access information. As investors

of all ethnicities become increasingly comfortable with access to account information via

their smartphones and tablets, financial providers and advisors must adapt to the new

“immediate” approach to information. Additionally, developing relationships via video-

chat will become an important skill set. The likelihood to adopt various communication

and information approaches do vary based upon ethnicity. Financial advisors must be

willing to adapt their approaches based upon the different fundamental belief systems.

This report will highlight the usage of social media by platform and identify how investors

with different ethnic backgrounds use various types of social media. Additionally, the

report will focus on the usage of mobile technology based on ethnic background.

Ultimately, the usage of mobile technology by ethnic segment will be discussed and

highlighted.




Key Findings

• Facebook is the most commonly used social media platform with two-thirds of African-

Americans using Facebook and more than half using LinkedIn. In most cases, the

ethnic segments use all social media platforms more than the general affluent

population.

• A quarter of Hispanics check Facebook at least one a day while Asians are likely to

check their Facebook accounts even more frequently.

• LinkedIn accounts are not checked as frequently as Facebook with more than half of

investors checking LinkedIn less than once each week.

• While roughly a quarter of investors only use Facebook for observation, thirty-five

percent of Asian investors use Facebook for observation only. In contrast, thirty-eight

percent of African American investors describe themselves as active Facebook

participants, regularly sharing and commenting on the platform.

• A quarter of Asian investors do not use social media. For those Asian investors, the

primary reason they do not use social media (66 percent) is because of concerns

regarding privacy. In contrast, only 15 percent of African Americans do not use social

media. Of that small percentage, 43 percent cite concerns over privacy.

• Social media is not used for financial decision making at the current time due to

compliance concerns that have plagued the financial services industry. Ethnic

investors, however, are more interested than the general affluent population in texting

their financial advisor.

• While few investors currently use social media to research or find financial information,

LinkedIn is the platform they are most likely to use to search for a financial advisor.

• While investors still prefer receiving financial information via the written word, more

than a third have watched videos on financial websites. Almost half of Asian investors

have watched videos on financial websites.




Key Findings Continued

• Ethnic segments are more likely to own smartphones than the general affluent

population with 80 percent of African Americans owning smartphones and 84 percent

of wealthy Hispanics owning smartphones.

• Roughly two-thirds of investors of all ethnicities own a tablet.

• More than half of investors use their smartphone to video-chat at least annually.

Video-chat via tablets are used somewhat less frequently.

• Roughly half of investors are open to video-chatting with their financial advisor via

various technologies, with the personal computer being the most popular

communication tool. African Americans, followed by Hispanics, are the most

interested in communicating with their advisors via video-chat.

• Skype is the most common platform used for video-chat.

• Thirty-nine percent of investors are comfortable using their smartphone for their

boarding passes on airplanes, with African-Americans and Hispanics more likely to do

so than others.

• African-Americans are less likely than other ethnic segments or general investors to

conduct or research financial matters online. Asians are more likely to research

financial products and services online than other ethnicities or the general affluent

population. Asians check their balances online in a similar manner to the overall

affluent population, however, they are more likely to use this feature than Hispanics or

African Americans.




Methodology

This report analyzes the social media and mobile technology usage of different ethnic

segments within the United States. The report includes investors with more than

$100,000 of net worth, not including primary residence (NIPR). Respondents qualified

based on the aggregate total of the household's indicated net worth.

The 2014 Ethnic Segmentation Series reports are fielded each month with the rotation of

questions changing on a quarterly basis. Each quarter, a different set of questions

focused on a specific set of topics will be fielded. For the second quarter the questions

dealt primarily with Use of Social Media and Mobile Technology. The surveys were

completed by the person primarily responsible for making the day-to-day financial

decisions within the household.

Spectrem conducted this survey through an online panel that is generally representative

of the Affluent Investor throughout the United States.

Data for this report comes from a survey of 140 African-Americans, 117 Hispanics and

179 Asians, conducted between March 2014 and May 2014. For comparison purposes,

an overall total of those respondents with over $100,000, regardless of ethnicity, was

included. These totals exclude those individuals who were included in the ethnic

analysis. This total is made up of 2,812 respondents.




Demographics

Affluent Hispanic, African-American and Asian investors are younger than the overall

group of affluent investors surveyed within the United States. As far as occupations are

concerned, African-Americans and Hispanics were most likely to be Managers, while

Asians show the highest percentage of Professionals (accountants, attorneys,

consultants, doctors or dentists). The percentage of Professionals within the affluent

ethnic segments is higher than that of the overall affluent market.

All Other African-American Hispanic Asian

4% 6% 6% 13%8% 14% 19%17%22%

40% 33% 17%31%

31% 31%32%

35%10% 11% 20%

35 and under 36-44 45-54 55-64 65 and above

Manager

Educator

Professional

InformationTechnology

Business Owner

19%

12%

11%

7%

6%

Manager


Professional

Healthcare

Senior CorporateExecutive

16%

13%

10%

8%

7%

Professional

Manager


Educator

Accountant

19%

16%

10%

8%

7%

Top Occupations by Ethnicity

African-American Hispanic Asian

Age

59 53 52 53Average Age




Demographics

Wealthy African-American households, followed closely by Hispanic households, are the

least likely to be retired, with three-quarters indicating they are still working. Asians are

the most likely to be retired, with just over a quarter stating they are fully retired and

another 7 percent indicating they are semi-retired. In general all three segments are

much less likely to be retired than wealthy households overall. Keep in mind, however,

that the average age of the wealthy ethnic segments is younger than the overall affluent

population.

75%

19%6%

66%

26%

7%

74%

21%4%

Working

Retired

Semi-Retired

African-American

Hispanic Asian

Retirement Status

51%39%

10%

All Other




When it comes to the use of professional financial advisors, ethnicity does seem to have

an impact. Asians are the most likely to consider themselves to be “Self-Directed”, or

make the majority of their own investment decisions without the help of an advisor.

Hispanics, on the other hand, are the most likely to be using an advisor in some capacity,

with just under two-thirds showing some type of advisor use. All of the ethnic segments

are less likely to be Advisor Dependent than the general affluent population.

Advisor-Dependency

Demographics

All Other

African-American

Hispanic

Asian

35%

39%

37%

46%

33%

39%

43%

31%

19%

13%

13%

15%

12%

9%

8%

8%

Self-Directed Event-Driven Advisor-Assisted Advisor-Dependent

Investors rely on an

investment

professional or

advisor to make

most or all

investment

decisions

Investors regularly

consult with an

investment advisor

regarding most

investment needs,

but make most of

the final decisions

Investors make

most of their own

decisions but use

an investment

advisor for

specialized needs

such as retirement

planning, asset

allocation advice or

selecting

alternatives

Investors make

their own

investment

decisions without

the assistance of

an investment

advisor




Social Media Usage




Facebook

LinkedIn

Twitter

Google Plus

Pinterest

YouTube

Instagram

Vine

Snapchat

I do not use any of the above

57%

45%

14%

9%

9%

28%

6%

1%

1%

25%

66%

56%

24%

17%

11%

41%

12%

3%

1%

15%

62%

46%

26%

9%

10%

38%

16%

2%

3%

21%

55%

42%

15%

17%

7%

33%

4%

1%

3%

25%


Which of the Following Types of Social Media Platforms do You

Presently Use?

Social Media Usage

Overall, the ethnic segments use social media at a greater than or similar rate as other

affluent households. African-Americans are the biggest users of social media among

the three segments, while Asians are somewhat less likely to be using these social

media platforms. Twenty-five percent of wealthy Asian investors (the same percentage

as in the general affluent population) indicate they do not use any social media platforms,

compared to 21 percent of Hispanics and only 15 percent of African-Americans.




Less than once per week

Multiple times during the week but notdaily

Once per day

Two to five times per day

Five to 10 times per day

More than 10 times per day

20%

21%

22%

26%

6%

5%

27%

16%

14%

28%

10%

5%

18%

25%

26%

13%

11%

7%

20%

21%

22%

26%

6%

5%


How Often Do You Check Facebook?

Social Media Use

Although African-American investors are the most likely to be Facebook users at 66

percent, they are not the most frequent users of Facebook. In fact, they check their

Facebook accounts less than once per week (27 percent). The Hispanics, of whom 62

percent use Facebook, are the most likely to be on their Facebook accounts five or more

times per day. Asians have similar usage.




Over half of all of the 45 percent of affluent investors using LinkedIn check their

accounts less than once per week. Unlike Facebook, African-Americans are the most

likely to be more active on this platform, with 29 percent checking their account at least

once per day, compared to only 21 percent of Hispanics and 23 percent of Asians. Fifty-

six percent of African-Americans use LinkedIn compared to only 42 percent of Asians

and 46 percent of Hispanics.



Once per day




53%

30%

11%

5%

1%

0%

51%

21%

21%

5%

3%

0%

52%

28%

11%

6%

2%

2%

53%

24%

14%

7%

1%

1%


How Often Do You Check Linkedin?

Social Media Use






Once per day




53%

30%

11%

5%

1%

0%

51%

21%

21%

5%

3%

0%

52%

28%

11%

6%

2%

2%

53%

24%

14%

7%

1%

1%


How Often Do You Check Twitter?

Social Media Use

Only fourteen percent of affluent investors are using Twitter. African-Americans, who

have a Twitter usage rate of 24 percent, are the most likely to be active Twitter users,

with just under three-in-ten (29 percent) checking their Twitter accounts at least once per

day. The Hispanics, 26 percent of whom use Twitter, are the least likely to be checking

their accounts this frequently, and most likely to be checking it multiple times during the

week, but not daily or more.




I use for observation only. I don'tshare or communicate with it

I occasionally share information withothers

I am an active participant andobserve, share, comment and

communicate with others

24%

56%

20%

22%

41%

38%

24%

56%

21%

35%

49%

16%


Which of the Following Would Best Describe Your Usage of Facebook?

Social Media Use

The largest percentage of all affluent investors classify themselves as occasional sharers

on Facebook. Over a third of African-Americans, however, indicate they are active

participants, sharing, commenting and communicating with others on Facebook. This is

a significantly larger percentage than both the overall affluent investor group and the

other segments.








46%

46%

8%

41%

51%

8%

50%

43%

7%

43%

51%

5%


Which of the Following Would Best Describe Your Usage of LinkedIn?

Social Media Use

Just over half of Asians and African-Americans occasionally share information via their

LinkedIn accounts, while Asians are more likely to be passive observers only. Less than

10 percent of affluent investors identify themselves as active participants on LinkedIn.








47%

39%

13%

30%

48%

21%

33%

43%

23%

33%

52%

15%


Which of the Following Would Best Describe Your Usage of Twitter?

Social Media Use

All three ethnic segments show a greater percentage of investors that occasionally share

information or are active participants via their Twitter accounts than the overall investor

group. Hispanics are the most likely to classify themselves as active participants on

Twitter, with just under a quarter stating they observe, share, comment and communicate

with others through this platform.




Family or Friends

Athletes

Movie Stars

Political Commentators

News Commentators

Financial Commentators

My Financial Advisor

Other

68%

31%

18%

36%

43%

20%

4%

23%

79%

33%

30%

48%

45%

24%

9%

12%

77%

23%

30%

47%

37%

27%

0%

13%

70%

30%

33%

22%

30%

33%

7%

7%


Social Media Use

When asked who they were most likely to follow on Twitter, the majority of all investors

answered family or friends. Almost half of African-Americans and Hispanics follow

political commentators and a third of Asians follow financial commentators. Almost ten

percent of African-Americans follow their financial advisor on Twitter.

Who do You Follow on Twitter?




For those that don’t use social media, the most common reason among all three

ethnicities is that they are worried about the privacy of their information on these

platforms. Hispanics, Asians and African-Americans are all less likely than the overall

group of investors to look at these programs as a waste of time or to see no value in

them.

I worry about the privacy of myinformation

I've never been taught or understandthe features of these programs

I look at these programs as a wasteof time

I see no value in the purposes ofthese programs

I find these programs are hard tolearn

None of the above

49%

12%

50%

53%

2%

9%

43%

5%

33%

38%

5%

29%

60%

0%

44%

40%

4%

12%

66%

14%

20%

30%

0%

18%


What Are Your Primary Reasons For Not Using Social Media?

Social Media Use




Wealthy African-American investors are the most likely to increase their usage of all the

social media platforms in the future, with the exception of Pinterest, of which Asians are

the most likely to adopt in the future. For all platforms except Pinterest, all three ethnic

segments are more likely than the overall average group to increase their usage of these

social media outlets in the future.

Facebook

LinkedIn

Twitter

GooglePlus

Pinterest

YouTube

None of the above

10%

13%

5%

3%

3%

4%

73%

18%

22%

14%

7%

2%

9%

56%

12%

18%

11%

5%

4%

11%

60%

15%

14%

7%

4%

2%

7%

66%


Do You Plan to Increase Your Usage of Any of the

Following in the Future?

Social Media Use




Social Media and Financial Decisions




Facebook

LinkedIn

Twitter

Text Messages

Snapchat

Other

None of the above

1%

2%

1%

12%

0%

21%

69%

3%

4%

3%

19%

1%

13%

68%

6%

5%

3%

15%

0%

20%

61%

5%

3%

3%

14%

0%

24%

58%



Advisory firms have been slow to adopt social media as a means of communication for

financial information. This is primarily due to a fear of complex compliance issues.

Texting is just starting to become acceptable if advisors have the proper “back-up” to

retain their text messages. This is why some of the adoption levels remain low when

using social media for financial decisions. African-Americans, Hispanics and Asians are

all more likely to have communicated with their financial advisor through text messages

than the overall investor group. They are slightly more likely to have reached out to their

advisor via social media platforms as well. Asians are the most likely to have

communicated with their advisor through at least one of these methods.

Have You Ever Communicated With Your Financial

Advisor Via the Following?




16%

84%

Would You Like to Communicate With Your Financial

Advisor Via Texting?


Approximately one-fourth of Hispanics and African-Americans would like to communicate

with their financial advisor via text, a larger percentage than the overall wealth segment.

Asians have less interest than Hispanics or African-Americans and show similar

preferences to the overall affluent investors group in this case.

14%

86%

24%

76%

25%

75%

Yes

No

African-

American

Hispanic Asian

All Other




Which Type of Social Media Are You Most Likely to Use For

Researching Information?


Because there is limited information regarding financial issues currently available via

social media, investors have not been using social media for financial information. The

largest percentage of wealthy Hispanics and African-Americans would turn to LinkedIn

for researching information via social media, while Asians are more likely to use

Facebook. Four percent of African-Americans also indicate they might use YouTube as a

source for researching financial information through social media.

Facebook

LinkedIn

Twitter

GooglePlus

YouTube

None of these

2%

3%

1%

1%

1%

92%

3%

5%

2%

2%

4%

84%

1%

10%

3%

1%

2%

82%

9%

7%

2%

0%

2%

80%





Which Type of Social Media Are You Most Likely to Use For Finding a

Financial or Investment Advisor?


LinkedIn is the social media platform that affluent African-American, Hispanic and Asian

investors are most likely to use to find a financial or investment advisor. Hispanics are

the investors most likely to be using this platform in their advisor search. Six percent of

Asians also indicate they might use Facebook to assist them in finding a financial or

investment advisor.

Facebook

LinkedIn

Twitter

GooglePlus

YouTube

None of these

2%

6%

0%

1%

1%

91%

3%

9%

2%

2%

3%

81%

2%

10%

4%

1%

1%

81%

6%

8%

2%

1%

1%

80%





36%

64%


Hispanics and Asians are substantially more likely to have watched videos on financial

websites than their African-American or “all other” investor group counterparts. Almost

half of wealthy Asians have watched videos on financial websites, as well as 44 percent

of Hispanics, compared to only 35 percent of all other investors.

Do You Ever Watch Videos on Financial Websites?

47%53%

35%

65%

44%

56%

Yes

No

African-

American

Hispanic Asian

All Other




Which Would You Prefer For Getting Financial Information?


The vast majority of all investors chose written articles as their source of choice for

getting financial information. African-Americans are slightly more likely than Asians or

Hispanics to prefer to get their financial information in video format (15 percent vs. 9

percent and 11 percent, respectively). Only slightly more than 10 percent of all investors

prefer neither method for obtaining their information.

All Other

African-American

Hispanic

Asian

5%

15%

11%

9%

83%

73%

77%

78%

13%

12%

12%

12%

Videos Articles Neither




Technology Preferences of the Investor




African-Americans, Hispanics and Asians are all more likely than the overall affluent

investor group to own a smartphone, with Hispanics being the most likely. Of the three

groups, Asians are the least likely to own a smartphone and tablet, yet the most likely to be

accessing websites via their PC/Mac. Almost three-quarters of Asians, however, own a

smartphone compared to 68 percent of other affluent households. Eighty-four percent of

Hispanics and eighty percent of African-Americans have smartphones.

Smartphone that allowsyou access to the Internet

and allows you todownload apps

Tablets or e-readers suchas an iPad or a Kindle

Websites via the Internetwith your PC/Mac

I use none of the above

68%

65%

83%

4%

80%

67%

73%

6%

84%

67%

77%

3%

72%

60%

84%

3%


Which of the Following Technologies do You Currently Use?





All segments of ethnic investors are more likely than the overall affluent investor group to

have the ability to video-chat through one or more methods, with at least eight-in-ten

indicating they have this ability. Hispanics are more likely to have the capability via their

smartphones, while African-Americans are the most likely to video-chat via their tablets or

e-readers.

Do You Currently Have the Ability to Video-Chat With Another Person

Through the Following Devices?


Smartphones

Tablets or e-readers such as an iPad orKindle

Personal computer

None of the above

48%

42%

59%

21%

58%

54%

57%

15%

71%

49%

59%

12%

53%

44%

63%

16%





When it comes to using their video-chat capability, Asians are the most likely to use this

feature. Only 16 percent of wealthy Asian investors have never used video-chat on their

smartphones, compared to 35 percent of African-Americans and 30 percent of the overall

affluent population. Asians use this function the most frequently, with just under half video-

chatting on at least a monthly basis.

Which of the Following Best Describes How Often You Use This Video-

Chat Feature With Your Smartphone?


Daily

Weekly

Monthly

Multiple times during the year

Annually

Never

5%

12%

14%

27%

12%

30%

12%

12%

9%

19%

13%

35%

12%

16%

20%

19%

11%

22%

7%

16%

23%

32%

7%

16%





At least four-in-ten affluent African-American, Hispanic and Asian investors are video-

chatting via their tablet or e-reader at least monthly.


Chat Feature With Your Tablet or E-Reader?


Daily

Weekly

Monthly


Annually

Never

4%

18%

15%

27%

11%

26%

10%

23%

17%

23%

7%

21%

11%

13%

21%

27%

7%

21%

7%

24%

21%

21%

8%

20%





Once again, ethnic investors are more likely than the overall group of wealthy investors to

video-chat via their computer. The Asian and Hispanic segments are the most frequent

video-chatters. African-Americans video-chat less frequently on their personal computers

than the other ethnic segments.


Chat Feature With Your Personal Computer?


Daily

Weekly

Monthly


Annually

Never

4%

14%

13%

26%

15%

29%

11%

11%

15%

29%

13%

21%

13%

15%

18%

25%

6%

22%

11%

21%

17%

28%

7%

17%





Hispanic and African-American investors are more willing to use their smartphones, tablets

and computers to have a conversation or meet with their financial advisors than other

wealthy investors. Asians are less enthusiastic about meeting with their financial advisor

via video-chat than other ethnicities. While half of Asian investors would be willing to use

their tablets or personal computers to have a conversation with their advisor, only a third

would consider meeting via smartphone.

Would You Consider Using Any of the Following to Have a

Conversation or Meeting With a Financial Advisor?


Smartphones

Tablets or e-readers such as an iPad orKindle

Personal computer

45%

49%

56%

51%

70%

79%

60%

61%

69%

34%

49%

50%





Investors are more likely to use Skype to video-chat, however more than half might use

Facetime as well. Hispanics are more likely than Asians or African-Americans to use

Facetime and other video-chat capabilities.

Which of the Following Would or Have You Used to Video-Chat?


Facetime

Skype

Other video-chat capabilities

51%

78%

18%

54%

74%

15%

61%

69%

21%

51%

77%

17%





The largest percentage of all investors use their smartphone for less than five hours per

week, outside of texting/email or telephone calls. African-Americans are the most likely to

be using their smartphone for the greatest number of hours weekly, with more than three-in-

ten using it for 16 hours or more.

Approximately, How Many Hours Per Week Are You Using Your

Smartphone for Activities Other Than Telephone Calls and

Texting/Email?


Less than 5 hours

6-15 hours

16-25 hours

25-50 hours

More than 51 hours

60%

26%

8%

4%

1%

46%

22%

21%

8%

2%

51%

28%

12%

5%

4%

55%

27%

12%

5%

1%





When asked if they would prefer to use a browser on their smartphone that takes them

directly to the website, or an app that is designed for the smartphone, Hispanics were the

most likely to have no preference, while African-Americans and Asians prefer to have an

app that is designed for their smartphone. Overall, more investors prefer an app than a

mobile browser, however, a similar percentage have no preference.

Do You Prefer to Use a Browser on Your Smartphone That Takes You

Directly to the Website or an App Designed For Your Smartphone to

Obtain Information From a Website?


Prefer mobile browser

Prefer app

Have no preference

28%

36%

36%

27%

39%

34%

21%

33%

46%

28%

36%

36%





For those that prefer to use a mobile browser over an app, the main reason for this

preference was that they did not want to feel limited by an app, and instead wanted to have

access to the entire website. Thirty-percent of African-Americans also feel that they find a

browser easier to navigate than an app and 25 percent of Asians indicate they do not like to

download apps.

What is Your Primary Reason For Preferring a Mobile Browser

Rather Than an App?


I prefer to be able to access the entirewebsite and not be limited by the app

I find using a browser easier to navigate

I prefer to use the internet accessinformation rather than use the 3G or 4G

services to access information

I do not like to download apps

Other

58%

18%

8%

15%

2%

53%

30%

3%

10%

3%

67%

19%

0%

14%

0%

64%

7%

2%

25%

2%





Thirty-nine percent of all affluent investors will use their smartphone as a boarding pass

on an airline. Almost half of Hispanics use their smartphone as a boarding pass on

airplanes. African-Americans are the most likely to be using their smartphones to pay for

daily incidentals, such as coffee. They are also considerably more likely than their

Hispanic and Asian counterparts to use their smartphones to pay at restaurants and to

pay parking meters and purchase transit tickets.

Please Indicate if You Use Your Smartphone For Any of the Following:


All Other African-

Americans

Hispanic Asians

As a boarding

pass on airlines39% 41% 48% 38%

To pay for daily

incidentals such

as coffee or

pastries

12% 16% 14% 11%

To pay at

restaurants4% 10% 2% 5%

To pay at grocery

stores2% 6% 2% 2%

To pay a parking

meter4% 15% 6% 7%

To purchase

transit tickets6% 13% 4% 9%

None of the above 55% 45% 48% 54%




All Other Hispanic

How Safe Are The Following Payment Methods?

(Unsafe= 0, Very safe= 100)


African-Americans were substantially more likely to feel that using their smartphones is a

safe method of payment, with the average rating it as a 54.76 out of a 100. They were

more likely, however, to consider credit cards as a safe payment method. Hispanics,

however, are the least likely to feel that credit cards are safe, only ranking 66.06 out of

100 on average.

66.06

72.55

72.59

Using a credit

card for

payments

54.76

45.82

45.92

Using a

smartphone for

payments

African-American Asian

48.69

73.90

0 = Very unsafe

0 = Very unsafe

100 = Very safe

100 = Very safe




Affluent African-American investors were the most active users of tablets and e-readers,

with more than 30 percent using it for 16 hours or more per week. The least active

investors were the Asians, with just under half (45 percent) using their tablets less than 5

hours per week.

Approximately, How Many Hours Per Week Are You Using Your

Tablet or E-reader?


Less than 5 hours

6-15 hours

16-25 hours

25-50 hours

More than 51 hours

41%

37%

14%

6%

1%

28%

39%

18%

12%

3%

36%

37%

15%

9%

3%

45%

29%

20%

6%

1%





Ethnic investors are more active on their PC/Macs than their general affluent investor

counterparts. Just over a third of both African-Americans and Asians are using their

PC/Mac between 25 and 50 hours per week.

Approximately, How Many Hours Per Week Are You Using

Your PC/Mac?


Less than 5 hours

6-15 hours

16-25 hours

25-50 hours

More than 51 hours

11%

32%

26%

26%

5%

12%

25%

22%

35%

6%

10%

32%

29%

28%

1%

12%

26%

26%

34%

3%





African-Americans and Hispanics are less likely to be performing transactions or

researching investment information than other affluent investors. with the exception that

Hispanics are more active in researching information on financial products and services.

Asians are more active than other ethnic segments in conducting financial transactions

and researching financial information.

Which of the Following Activities do You Regularly Conduct Online?


All

Other

African-

Americans

Hispanic Asians

Follow the news 92% 83% 88% 83%

Research information

on financial products

and services

51% 45% 55% 60%

Correspond with a

financial professional29% 24% 24% 21%

Conduct financial

business such as

buying and selling

investments

39% 27% 28% 43%

Check account

information such as

current balance

87% 83% 82% 87%

Obtain market updates 64% 44% 50% 59%

None of the above 2% 4% 3% 1%




All investors are interested in having access to their personal account information through

websites, smartphones and tablets. About half of African-Americans would be interested in

advice from financial experts. Forty-four percent of Hispanics would like comprehensive

service/product offering information available to them. Almost half of African-American and

Hispanic investors would be interested in an online rating of financial advisors.

How Interested Would You be in the Following Topics Through a

Website, Smartphone or Tablet Computer?


Comprehensive service/product offeringinformation

Articles/research on financial topics and products

Advice from financial experts

Online rating of financial advisors

Case studies about other clients

Access to personal account information

32%

52%

39%

28%

19%

73%

39%

53%

49%

43%

30%

73%

44%

56%

44%

41%

32%

68%

36%

52%

36%

30%

25%

68%





Investors would like the ability to view their investment balances in one place despite having

investments with multiple vendors, with African-Americans being the most interested in this

capability. Four-in-ten Asians are interested in the ability to benchmark against investment

returns. All of the ethnic groups are more interested in videos and webcasts than the

general affluent investor group.

How Interested Would You be in the Following Topics Through a

Website, Smartphone or Tablet Computer?


Ability to look at balances in one place frommultiple providers

Videos about products offerings

Benchmarking against investment returns

Stock market ticker tape

Webinars and podcasts about financial topics

Videos about experts talking on financial topics

61%

17%

39%

36%

25%

23%

67%

32%

39%

30%

38%

30%

59%

26%

39%

37%

39%

32%

58%

24%

42%

38%

32%

33%





Technology and Financial Communications




When asked how often they communicate by voice with their financial advisor or provider,

almost half of wealthy Asians stated never and another 32 percent stated less frequently

than monthly. Hispanics appear to be communicating with their advisors by voice the most

frequently, with just over a quarter speaking to them at least monthly.

Frequency of Communicating by Voice With my Financial

Advisor or Provider?


Daily

Weekly

Monthly

Less Frequently

Never

1%

5%

17%

38%

39%

2%

8%

14%

37%

39%

4%

4%

18%

39%

37%

2%

3%

16%

32%

47%





While most investors, regardless of ethnicity, have not communicated with their advisor via

text, all of the ethnic segments have communicated with their advisor via text more than the

general affluent population. Keep in mind, however, that most advisors currently do not

communicate via text due to compliance concerns.

Frequency of Communicating by Text With my Financial



Daily

Weekly

Monthly

Less Frequently

Never

1%

2%

5%

15%

78%

2%

5%

6%

20%

67%

3%

4%

7%

21%

65%

1%

1%

5%

18%

75%





Email is the most common form of communication with advisors among ethnic investors.

Just over a third of investors indicate they have never emailed their financial advisor. Over

20 percent of investors communicate with their financial advisor via email on at least a

monthly basis.

Frequency of Communicating by Email With my Financial



Daily

Weekly

Monthly

Less Frequently

Never

1%

5%

18%

41%

35%

3%

5%

16%

38%

38%

4%

4%

18%

42%

32%

1%

3%

17%

43%

36%





Implications




Implications

The increased usage of mobile technology and social media have the following implications

for financial advisors and providers targeting wealthy investors from specific ethnic groups:

• Asian investors, while comfortable with both mobile technology and social media

platforms, have greater concerns regarding privacy. This causes them to share less

on social media platforms and to be slightly more hesitant to share information online or

via video-chat. They are also, however, more likely to research financial issues and

topics online. Advisory firms focusing on wealthy Asian investors may want to emphasize

the security of their financial platforms and to highlight the confidentiality of their

information as well as the confidential nature of the advisory relationship. Advisors

should be very prepared when discussing issues with these investors and be aware of the

information already available online. These investors are the most likely to considers

themselves to be “Self-Directed”. Advisors will provide “value-added” information if they

are able to anticipate the questions and issues an investor might form when doing their

own research. They are the most likely to watch videos on financial websites. Therefore,

advisors hoping to attract these investors should have an active video strategy.

• Hispanic investors are the most likely to use an advisor in some capacity and the

least likely to be Self-Directed. They are the most likely to check Facebook on a

regular basis and the ability of an advisor to communicate via this platform may be very

effective in prospecting for these clients. They are very comfortable using their

smartphones and tablets and advisory firms should use these tools to communicate with

these investors. Less likely to research financial information, advisors may be able to

assist these investors with an educational approach to investing.

• African-American investors project a persona of a more “outgoing” investor.

Active on social media sites, they are also more likely than others to be “active” users on

Facebook and other social media. This means they are willing to “share” information.

They are also the greatest users of smartphones and tablets. Advisors and financial firms

need to use these tools to promote information and, to the extent possible, provide

advice. These investors seem open to new approaches yet willing to listen to advice.

The ability for financial advisors and providers to appear as professional and proficient will

be attractive to these investors.

• All investors are just beginning to use social media and their mobile technology

for financial information. As the confidence with these tools and platforms continue to

increase, expect usage and reliance to also increase, regardless of an investor’s ethnicity.




List of Exhibits




List of Exhibits

• Introduction

• Key Findings

• Methodology

• Demographics

• Age, Top Occupations by Ethnicity

• Retirement Status

• Advisor-Dependency

• Social Media Usage

• Which of the Following Types of Social Media platforms do You Presently Use?

• How Often do You Check Facebook?

• How Often do You Check LinkedIn?

• How Often do You Check Twitter?

• Which of the Following Would Best Describe Your Usage of Facebook?

• Which of the Following Would Best Describe Your Usage of LinkedIn?

• Which of the Following Would Best Describe Your Usage of Twitter?

• Who do You Follow on Twitter?

• What Are Your Primary Reasons for Not Using Social Media?

• Do You Plan to Increase Your Usage of Any of the Following in the Future?

• Social Media and Financial Decisions

• Have You Ever Communicated With Your Financial Advisor Via the Following?

• Would You Like to Communicate With Your Financial Advisor Via Texting?

• Which Type of Social Media Are You Most Likely to Use for Researching

Information?

• Which Type of Social Media Are You Most Likely to Use For Finding a Financial

or Investment Advisor?

• Do You Ever Watch Videos on Financial Websites?

• Which Would You Prefer for Getting Financial Information?

• Technology Preferences of the Investor

• Which of the Following Technologies do You Currently Use?

• Do You Currently Have the Ability to Video-Chat With Another Person Through

the Following Devices?




List of Exhibits

• Which of the Following Best Describes How Often You Use This Video-Chat

Feature With Your Smartphone?

• Which of the Following Best Describes How Often You use This Video-Chat

Feature With Your Tablet or E-Reader?

• Which of the Following Best Describes How Often You use This Video-Chat

Feature With Your Personal Computer?

• Would You Consider Using Any of the Following to Have a Conversation or

Meeting With a Financial Advisor?

• Which of the Following Would or Have You Used to Video-Chat?

• Approximately, How Many Hours Per Week Are You Using Your Smartphone for

Activities Other Than Telephone Calls and Texting/Email?

• Do You Prefer to Use a Browser on Your Smartphone That Takes You Directly

to the Website or an App Designed for Your Smartphone to Obtain Information

From a Website?

• What is Your Primary Reason For Preferring a Mobile Browser Rather Than an

App?

• Please Indicate if You Use Your Smartphone For Any of the Following.

• How Safe Are the Following Payment Methods?

• Approximately, How Many Hours Per Week Are You Using Your Tablet or E-

Reader?

• Approximately, How Many hours Per Week Are You Using Your PC/Mac?

• Which of the Following Activities do You Regularly Conduct Online?

• How Interested would You be in the Following Topics Through a Website,

Smartphone, or Tablet Computer?

• How Interested Would You be in the Following Topics Through a Website,

Smartphone or Tablet Computer?

• Technology and Financial Communications

• Frequency of Communicating by Voice With my Financial Advisor or Provider?

• Frequency of Communicating by Text With my Financial Advisor or Provider?

• Frequency of Communicating by Email With my Financial Advisor or Provider?

• Implications

use of mobile technology, tablets, online tools and social media … · 2014-09-04 · demographics...

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