TikTok is completely changing how many financial service companies interact with prospects and clients. It offers a unique opportunity to educate, engage, and encourage people to take action. TikTok is an ideal way to reach younger, digitally sophisticated people with financial service needs.

This guide explains how asset and wealth managers and other financial services firms can use TikTok effectively.

TikTok for Wealth and Asset Managers: The Fundamentals

‍TikTok isn’t just about dance challenges and viral videos. It is now a central resource for financial education and advice. In fact, the #FinTok hashtag has been remarkable, with a reported 275 percent increase in FinTok-related video views over the past year, according to TikTok For Business.

TikTok is not merely an entertainment platform. It has evolved into a vital tool for social media advertising, content marketing, and user-generated content strategies for companies in the financial sector and other industries.

Crafting Engaging Financial Content for TikTok

Central to successful TikTok financial marketing is content that educates in an engaging way. The platform’s users, typically younger people, are open to learning about personal finance and investing in a simple and relatable way. This translates into an excellent opportunity for wealth and asset managers and other financial companies to develop concise, engaging videos that break down complicated financial topics into easy-to-understand and act on bites.

For example, consider taking advantage of TikTok trends like New Year’s resolutions and developing a series of videos around the topic “New Year, New Investment Strategies.” It could benefit from January finance and saving searches. A similar approach could be used to leverage the trend of people seeking out information about college savings as they attend graduations in June.

Also, make it a point to respond to user comments (in a compliant way) and engage directly with your audience on TikTok to educate them and build lasting relationships.

Leverage Influencer Partnerships to Expand Brand Reach

One of the best tactics for financial firms new to the TikTok game is working with influencers whom the people you’re targeting trust. Financial content creators (informally known as finfluencers) are engaging with TikTok users about money management, investing, and saving every day. According to CNBC’s insights on finfluencers, the hashtag #FinTok has amassed more than 4.7 billion views, with people in Gen Z making up the vast majority of those viewers.

While influencer collaborations can significantly enhance credibility, it is important to ensure any information shared is accurate and unbiased. Studies reveal that only 20 percent of financial influencer content with investment recommendations includes proper disclosures. This issue provides a great opportunity for financial brands to lead the way on TikTok by providing reliable, fact-based information users can trust.

Embracing accuracy and completeness and partnering with trusted finfluencers can help finance companies build and develop strong relationships with younger prospects and clients.

Use Data to Maximize Effectiveness of TikTok Marketing

Financial marketers need to be creative for success on TikTok. They must also go beyond that and take a data-driven approach to marketing on the platform. It’s critical to master tools like TikTok’s Pixel and Events API. They help financial marketers track user interactions in real time, allowing them to optimize campaigns based on performance data. It ensures your financial content reaches users who are most likely to engage and convert.

Based on our experience, strategies that blend consistent organic content posting mixed with strategic paid campaigns around different seasonal financial themes build trust, which results in solid conversion rates. Combining engaging content, solid targeting, and real-time optimization is key to wealth and asset manager marketing success on TikTok.‍

Post Finance Content Consistently on TikTok

Posting regularly on TikTok is crucial to staying top of mind with potential and current clients. The dynamic nature of the platform’s algorithm means content trends can change rapidly, especially in a sector as dynamic as finance. Staying constantly active on TikTok helps you remain agile and responsive to your audience and the platform’s content distribution algorithm. Finance companies that post regularly – mixing timely content with evergreen material – can encourage engagement that keeps people coming back for more, providing more opportunities to do business with them.

Pro tip: Regular interaction with TikTok users through comments (in a compliant way!) helps build authentic engagement and trust. It also encourages user-generated content which can bring your TikTok marketing program to life, adding another dimension. It’s almost like getting an endorsement without asking for one.

TikTok for Financial Firms: The Bottom Line

TikTok provides wealth and asset managers and other financial companies with a novel yet proven opportunity to connect with a new generation of investors. Focus on developing engaging evergreen, timely, and seasonal educational content, leveraging quality influencer partnerships, and employing data-driven advertising. Doing so will help you build lasting relationships in the virtual and real world and drive significant growth. 

If you’re interested in expanding into TikTok or any other aspect of social media marketing, schedule time with Dan Sondhelm and the team to discuss the possibilities.