No
one can argue over the impact of the internet on our personal and
business lives. It’s also getting very hard to argue that social media
has begun to have a sizable impact on our day to day lives that likely
isn’t going away. In a bad economy, people have spent more time on the
internet looking for information regarding how to best manage their
money and deal with the current situation. Within that, social media has
played a significant role in personalizing and the internet for us.
Within financial services social media, the technology allowed people to
share fiscal information that they feel is profitable and understand
the advice and theories of their friends, family, and associates.
Financial services social media has allowed people to better understand
the stock market, real estate, and other segments of the industry.
Perhaps the most important feature is that it rapidly allows neophytes
to quickly improve their knowledge. Of course, the danger comes when
people feel too confident too quickly and try to capitalize on knowledge
they don’t have. Social media also allows better and more engaging
interaction with professionals within the financial services sector.
Problems
arise in other ways than just some people making trades before they’re
ready. Individuals and corporations have often manipulated social media
by sharing knowingly false information. When that information goes
viral, it can take on a life of its own. This can be seen by how quickly
information spreads. Both true and false information can quickly move
across the internet. It can be too late before its proven false. Some
people may have made trades and the company may know, but be unable to
comment on the information, let alone correct it. If the news on the
company is negative (but false) the trades against the company may lower
its value significantly. That is a huge risk and has made companies
wary about social media. So obviously, both clients and companies face
dangers if financial services social media is misused.
The
importance of using financial services information in the United States
is getting greater as our economy continues to be in a recession and
stagnate and people find themselves without a plan to move forward. With
the real estate market remaining poor, people’s use of the technology
has higher stakes than in the past. But with such a new technology,
Financial Services Social Media has much more risk just because the
vulnerabilities are still being worked out. Obviously though, both
reputable individuals and companies have an interest in self-policing
and making sure that the information is reliable. The problem is that so
much of the economy is a zero-sum game. If one person makes money, it’s
usually at the expense of someone else. As long as that is the case,
and in capitalism it almost always is, then some people will always have
an interest in manipulating financial services social media. And as
long as some companies are thinking short-term and willing to make short
cuts, then they may do the same. But as long as people and companies
properly vet the information they’re going to act on, then financial
services social media won’t be fraught with danger and will be a
beneficial technology.
