Christopher Charlesworth, CEO and Co-founder of HiveWire, Joins National Crowdfunding Association of Canada’s Advisory Board
March 24th, 2017
In 2014, we delivered a groundbreaking report providing insight into the role social media plays in financial decision-making. The eye-opening findings were based on our survey of how approximately 300 Institutional Investors and Institutional Asset Managers use LinkedIn for investment decisions. Late last year we decided to validate our findings and gain an even deeper understanding into the use of social media and types of information Institutional Investors find valuable. We did so by partnering with Greenwich Associates to conduct a research study among a broader audience beyond the LinkedIn platform.
For the purposes of this study, Institutional Investors were defined as those employed by institutions across four sectors (Corporate Pensions, Insurance, Public Pensions, Endowments and Foundations) with occupations relevant to investing. Institutional Investor respondents were also decision makers or influenced decisions about their institution’s investments.
This report highlights responses from Institutional Investors in North America, Asia Pacific, and Europe, providing a glimpse into how they educate themselves on industry trends, industry news and investment products and services, and what impacts their investment decisions. Though we noticed some significant regional differences, the following findings are consistent across geographies:
While this research delivers new insights, the key findings jibe with the conclusion we drew from our LinkedIn-specific research: investors are actively seeking investment-related information via social media. Insightful information spurs them to take action, whether that be sharing information, making an investment decision, or deciding to work with a certain firm. Asset Managers that satisfy this demand can secure and enhance relationships with institutional investors, and influence investment decisions in their favor.
Institutional Investors consult a mix of digital and social media in the course of their daily work. Their visits to news sites, niche publications/ sites, blogs, discussion forums, and financial firms’ websites or blogs are largely holding steady and in some cases climbing (35% increase). Similarly, they are consistently turning to major social media channels, including LinkedIn, for information about financial topics – and have increased their usage by 40%.
Worth noting is that Institutional Investors in Asia Pacific are consistently higher users of all forms of social media sources than their
counterparts in North America and Europe. This may be attributable to several factors including:
Though all of these research findings are notable, what Institutional Investors do after consuming financial-related information on social media is most interesting. Once these investors find the information for they are seeking, they respond by taking action. The top actions they take are to:
The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding stakeholders across the country. NCFA Canada provides education, research, leadership, support and networking opportunities to over 950+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada. Learn more About Us or visit www.ncfacanada.org.