The Future of Communications in the Investor Relations

Industry

When it comes to investor relations, a key component is communicating in a manner that gets the message across in a clear and concise fashion. As technology continues to make its way throughout the financial industry, many firms are looking at how they communicate with investors. With such fierce competition among firms, it's imperative for firms to ensure they do not lag behind in utilizing all means available to keep investors fully informed. When disclosing information to investors, there are a variety of ways that will be used more and more in the future.

Mobile Devices

Today's investors not only want personal attention, but they also want it conveniently and quickly. As a result, more and more firms are turning to technology that focuses on getting information to investors via mobile devices such as smartphones and tablets. A number of firms are using video chat that allows hedge fund managers and other financial professionals to speak directly with clients and investors 24/7, since many clients are located throughout the world.

Webcasting

Today's firms, while still hosting investor conferences and other events in person, are also opting to broadcast these conferences and events live over the internet. This not only allows those who cannot attend the chance to participate, but it also opens the door to attracting new investors.

Investor Relations Websites

In recent years, corporate websites have been looked to as primary sources of information by investors as well as others in the financial industry. Due to a Securities and Exchange Commission ruling that now requires specific filings be available online by the next business day, these websites are seen as being crucial to having full transparency to investors.

Online Newsletters

Many clients and investors still like the idea of having a monthly newsletter, so many firms have taken a second look at this method of communication. As a result, the traditional newsletter is alive and well, albeit online rather than being delivered to a traditional mailbox. Using these newsletters, financial firms can constantly update information while at the same time generating an additional revenue source for the company.

As investor relations continues to increase in importance, innovative methods such as these will need to be used in order to attract and retain investors. For companies that choose to look to the future rather than the past, the years ahead promise to be filled with new and exciting opportunities.

Jeff Ramson is the CEO of PCG Advisory Group and an authority within the Investor Relations industry.