A recent 2015 study confirms that up to 80% of institutional investors use social media in their regular work flow, and 30% say it directly influenced an investment decision.
Institutional investors are increasingly using social media as a key source of information, in addition to the traditional financial news media in order to make investment decisions.
According to a new study by Greenwich Associates titled Institutional Investing in the Digital Age: How Social Media Informs and Shapes the Investing Process, about 80% of institutional investors are using social media in their daily work life and about 30% of them have admitted to offering recommendation and taking decisions based on information obtained through social media.
- 48% of social investors said that some information from social media had promoted them to conduct further research on a topic or industry.
- 37% shared information from social media websites with their seniors at their companies.
- 34% made decisions to work with a company or a client based on the information they found through social media.
- 33% said that information provided to them through social media often led to major discussions with their investment consultant.
The author of the study, Can Connell, the Head of Market Structure and Technology at Greenwich Associates:
“These results show that social media is influencing decisions that can result in the allocations of billions of investment dollars around the world.”
Some of the other major findings of the report:
- 52% people preferred LinkedIn over other social media platforms for professional use and 85% of them admitted to using it weekly.
- Asia leads in the number of institutional investors using the different social media platforms for professional use.
- Even though Facebook and YouTube are the top platforms for personal use, they are being increasingly used as a basis of group discussions and for video distribution.
- While Twitter offered information to institutions on market events, LinkedIn were more useful as they are more targeted with their profession.
For read the full report by Greenwich Associates, click here.