MADISON, Wis. (6/6/14)--Credit unions and other financial institutions are feeling more and more comfortable tying social media into their business strategies now that regulation and compliance issues have softened, according to data released by American Century Investments (eMarketer June 3).
Though still the top concern, over the last few years the percentage of financial professionals who worry about the use of social media in their business has fallen nine points to 36%.
Privacy breaches, meanwhile, have remained steady with professionals reporting being concerned with data security at 21%, the same as in 2010.
The level of concern over use, time and technology restrictions each climbed higher in 2014 from 2010 levels as well.
"As concerns about compliance and regulatory issues have dropped, and others have remained at relatively low levels, the financial industry's opinion about social media has become more positive," eMarketer said. "In 2014, more than one-third of U.S. financial professionals said that social media was valuable for their business, compared with around one-quarter who said so in 2010."
The majority of respondents also said they believed social media was an emerging trend and that it would have significant benefits for their businesses in the future. Only 44% believed that in 2010.
This has led financial services companies to allocate more money to their social media campaigns. Marketing executives from financial institutions said they expect their budgets for social media to grow by 7.4% in the next year and 15.7% in the next five years, according to numbers from a poll administered by Duke University's Fuqua School of Business in May.
Currently, those polled said that their institution spends 5.9% of their marketing budget on social media.