The popularity of financial information on social media

The popularity of financial information on social media

I’ve mentioned a few times before so it is refreshing to read similar comments from another Financial Adviser’s perspective.

Research has shown, that more than three quarters of Gen Z’s (76%) turn to social media platforms such as YouTube Instagram or TikTok for information on personal finance such as saving or investing.

This number will likely increase in the future due to the inaccessibility of low-cost financial advice combined with the wide array of financial content on social media platforms, thus widening the ‘advice gap’.

What further reinforces the reach of financial influencers is thier ability to relate to the average consumer. They are often individuals who have achieved similar financial goals, such as saving for that first home deposit or navigating through the minefield of pensions.

The challenge lies with regulating such widespread information available on social media. There are times when it is unrealistic, too risky or simply not true. On the flip side, the traditional world of financial advice can seem very boring, exclusive to certain clients and riddled with jargon.

I echo Amyr Rocha Lima, CFP®’s comments made in his recent article to the FT Adviser, that rather work against the social media community, Advisers should look to work with them -

“By collaborating with finfluencers, these institutions can potentially unlock a distribution channel for their knowledge that ensures the public are being educated in the right way.”

I am all in favour of cross-industry collaborating between the regulator Financial Conduct Authority, Financial advisers and social media content producers to ensure that the content put out is factually correct, not misleading and supports the goals of aspirations of the younger demographic of consumers requiring financial advice.