A report entitled, Made in Heaven or Marriage from Hell, reveals the key factors behind the financial sector’s lack of engagement with social media.

The report by Cicero highlights a fear of brand damage; compliance issues; and lack of expertise, time and resources as serious concerns for the financial industry with social media.

One third of respondents were concerned because social media was difficult to measure whereas one in five worried about compliance issues with social media. A further 10% thought their organisation lacked expertise, 38% identified a lack of time and resources as a problem and more than half were worried by potential brand damage.

Social media is widely viewed as an effective tool to resuscitate the financial sector in the eyes of the public. However, two –thirds of professionals from the industry admit that social media has not been used effectively throughout financial services.

In contrast other industries, such as retail, have benefited as a result of employing social media as means of engagement with their consumers. Firms such as Marks & Spencer, British Airways and ASOS are now enjoying positive B2C relations from adopting social media at an early stage.

The in-depth report conducted interviews with senior business leaders from across the industry and is the first analysis of its kind that focuses on financial services. Respondents came from a number of areas within businesses such as, corporate communications, compliance professionals and government relations, including CEOs.

Overall 57% of respondents are interested in utilising the medium for external communications going forward.