# The rise of “Finfluencers” presents unique opportunities but brands must proceed with caution Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-01-12 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: The Rise of Finfluencers: How Social Media is Changing Meta Description: Discover how 'Finfluencers' are revolutionising financial literacy on social media, with bite-size, engaging content for Gen Z and Millennials. But URL: https://financedigest.com/the-rise-of-finfluencers-presents-unique-opportunities-but-brands-must-proceed-with-cautionhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/touch-screen-mobile-phonef-1736814579497-compressed.jpg) ![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/alexander-frolov-450x674-1736814579456-compressed.jpg) _By_ **_Alexander Frolov,_** _CEO and Co-Founder of_ _HypeAuditor_ [Just 8 per cent of UK adults](https://www.ft.com/content/1ff44ac1-0d94-4fcf-a212-a07acb106152) have taken financial advice over the past year. Yet this is likely to change with more of us now turning to [social media](https://www.financedigest.com/ai-and-social-media-are-revolutionizing-personal-finance-in-2023.html "AI and Social Media Are Revolutionizing Personal Finance in 2023") platforms, such as Instagram or TikTok to become well versed in dealing with expenditures, credits and other money matters. Although this phenomenon has been gaining traction for a while, it has [become more prominent due to the cost-of-living crisis worsening and many more consumers seeking ways](https://www.financedigest.com/ways-to-become-a-millionaire.html "Ways to become a millionaire") to adapt to the current economic realities. “Finfluencers” (i.e. [social media influencers making content around financial](https://www.financedigest.com/31972social-engineering-in-the-financial-services-people-are-the-weakest-link-in-the-security-chain.html "Social engineering in the Financial Services : People Are The  Weakest Link in the Security Chain") or money-related information and advice) have revolutionised financial education thanks to their bitesize and light-hearted delivery. This is especially true among Generation Z and Millennials who often have no other [way to access free content to better their financial](https://www.financedigest.com/5-ways-to-improve-your-financial-literacy.html "5 Ways to Improve Your Financial Literacy") educations. In boosting and democratising financial literacy levels, “Finfluencers” have also come under the regulatory microscope, with some being fined for advertising unregulated crypto-currency schemes: [Kim Kardashian](https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.reuters.com%2Fmarkets%2Fus%2Fsec-charges-kim-kardashian-unlawfully-touting-crypto-security-statement-2022-10-03%2F&data=05%7C01%7Cnikki.gilliland%40econsultancy.com%7C9d38895e957e4160b56008dadd1b0083%7Cfdd3bf0d1bfa49198a45f1a311d56753%7C0%7C0%7C638065405336974051%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=mybaagmhwUIQX8S0bqOx1kPQYGlfyxngrJiUEikxccE%3D&reserved=0) and [Kevin David](https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.ftc.gov%2Fnews-events%2Fnews%2Fpress-releases%2F2022%2F11%2Fftc-takes-action-stop-dk-automation-kevin-david-hulse-pitching-phony-amazon-crypto-moneymaking&data=05%7C01%7Cnikki.gilliland%40econsultancy.com%7C9d38895e957e4160b56008dadd1b0083%7Cfdd3bf0d1bfa49198a45f1a311d56753%7C0%7C0%7C638065405336974051%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=zCB7mFydj%2B2qg48wov3N3HaiiLmFsOu8yBuOxugivzg%3D&reserved=0) being among the masses.  This comes at a time when over [7,200 reports of scams](https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.pymnts.com%2Fnews%2Fsecurity-and-risk%2F2022%2Fcalls-for-regulation-intensify-as-uk-crypto-scams-jump-45%2F&data=05%7C01%7Cnikki.gilliland%40econsultancy.com%7C9d38895e957e4160b56008dadd1b0083%7Cfdd3bf0d1bfa49198a45f1a311d56753%7C0%7C0%7C638065405336974051%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=6hCnpoPOm6pZdZJU4WeeHpxQZyJloym%2FIQuzO8JXnXY%3D&reserved=0) linked to cryptocurrencies were made to the FCA, the UK’s finance watchdog, in the year leading up to June 30, 2022. For financial brands, the rise of this new category of content creators can offer great opportunities to [engage with consumers in an authentic way](https://www.financedigest.com/customer-engagement-whos-leading-the-way.html "Customer engagement – who’s leading the way?"), perhaps even with groups they never had the opportunity to target before. However, they should proceed with caution. So, what should [financial marketers](https://www.financedigest.com/the-political-wildcard-what-is-trumps-us-presidential-nomination-doing-to-financial-markets.html "The political wildcard: What is Trump’s US presidential nomination doing to financial markets?") keep in mind? **The rise of “Finfluencers”** With the [rise of online banking](https://www.financedigest.com/the-rise-of-biometric-technology-in-banking.html "The rise of biometric technology in banking"), cryptocurrency, and general global economic uncertainty, the corresponding growth of “Finfluencers” across social media platforms is not surprising. More specifically, this reveals a strong impetus to [fill a gap](https://www.financedigest.com/uk-firms-plan-biggest-pay-rises-since-2012-to-fill-staff-gaps.html "UK firms plan biggest pay rises since 2012 to fill staff gaps") where traditional financial institutions or more formalised financial planning businesses have made access to basic financial literacy either challenging to navigate or cost prohibitive to younger people. According to proprietary research from HypeAuditor, the “finance and economics” Instagram influencers category grew at a [rate of 29% globally](https://www.financedigest.com/rate-rise-fears-prompt-third-week-of-global-equity-funds-outflows.html "Rate rise fears prompt third week of global equity funds outflows") in 2022, the fastest growing of any category, surpassing those traditionally associated with influencer marketing such as beauty or travel. In the UK, these types of influencers grew by 24% and belong in the top five of the most popular content on Instagram, which includes Lifestyle, Music, Photography and Gaming content creators. In 2022, our data also showed that millennials aged between 25-34 are most likely to follow Finfluencers, with followers being predominantly male. This is not surprising as many millennials are now at the stage of [buying a first home or investing in shares](https://www.financedigest.com/uks-bellway-to-buy-back-shares-hike-social-housing-output.html "UK’s Bellway to buy back shares, hike social housing output") for the first time. Platforms such as Instagram, [YouTube or TikTok](https://www.financedigest.com/youtube-in-challenge-to-tiktok-to-give-shorts-creators-45-of-ad-sales.html "YouTube in challenge to TikTok to give Shorts creators 45% of ad sales") provide easily comprehensible information from FinFluencers — an attractive alternative to the paid or intimidating options presented by traditional financial planners. However, when checking some of the most popular related hashtags #personalfinance #investing, #crypto, it is [clear that the quality](https://www.financedigest.com/new-ozone-study-demonstrates-clear-link-between-quality-of-attention-to-content-and-quality-of-attention-to-accompanying-ads.html "NEW OZONE STUDY DEMONSTRATES CLEAR LINK BETWEEN QUALITY OF ATTENTION TO CONTENT AND QUALITY OF ATTENTION TO ACCOMPANYING ADS") of advice provided is not equal. Even though some Finfluencers can be trustworthy, others are sharing downright dubious information such as borrowing [money and investing](https://www.financedigest.com/ethical-property-investment-can-your-money-do-more.html "Ethical property investment: Can your money do more? ") it in high-risk assets or promoting expensive courses, which often only contribute to the Finfluencer’s own wealth. **Heed the guidelines or [risk losing consumer](https://www.financedigest.com/cybercrime-misconceptions-putting-uk-consumers-risk.html "Cybercrime misconceptions putting UK consumers at risk") trust** Earlier this month, the FCA proposed tougher measures to better [regulate unfair or misleading](https://www.financedigest.com/polish-regulator-accuses-t-mobile-of-misleading-advertising.html "Polish regulator accuses T-Mobile of misleading advertising") financial marketing content. In particular, the watchdog wants to impose new screening checks to reprimand any wrongdoers who are promoting [financial schemes without clearly highlighting the risks](https://www.financedigest.com/financial-risks-of-climate-change-overplayed-senior-hsbc-banker-says.html "Financial risks of climate change overplayed, senior HSBC banker says"). However, more will need to be done in relation to dubious crypto schemes, currently outside of the FCA’s remit. We can also hope that the Online Safety Bill, when it finally comes into play, will also help towards the prevention of other financial scams, by forcing the [social media platforms](https://www.financedigest.com/twitter-social-platforms-could-see-spike-in-election-misinformation.html "Twitter, social platforms could see spike in election misinformation") to take more steps towards this issue. In addition, members of Parliament at Westminster are also looking at proposing an amendment to the financial [services](https://www.financedigest.com/devops-the-secret-tool-thats-transforming-financial-services.html "DevOps: The Secret Tool that’s Transforming Financial Services") and markets bill to make provisions for UK citizens to access personalised financial guidance from regulated services firms only. This will hopefully help towards [providing access](https://www.financedigest.com/patsnap-partners-with-wipo-to-provide-developing-countries-with-access-to-rd-analytics.html "PatSnap partners with WIPO to provide developing countries with access to R&D analytics") to more trustworthy sources to consumers. While steps are being taken by authorities, ultimately, financial marketers, who hope to partner with Finfluencers, also need to do their due diligence and have appropriate risk management [systems and monitoring processes](https://www.financedigest.com/solvency-ii-pushing-existing-systems-and-processes-harder-is-not-enough-for-compliance.html "Solvency II: pushing existing systems and processes harder is not enough for compliance") before agreeing to partnerships. One of the most effective ways to do so is by relying on data analytics platforms and campaign [management systems that continually check the quality of an influencer’s audience as well as providing measurement on their activities](https://www.financedigest.com/with-the-right-active-manager-you-really-do-get-what-you-pay-for.html "With the Right Active Manager, You Really Do Get What You Pay For"). Brands must be vigilant in the discovery phase: determining the most relevant and reliable Finfluencers to partner with. From a content perspective, it is crucial for influencers and the brands working with them, to [stay up to date with any announcements from the FCA or any other relevant](https://www.financedigest.com/how-banks-can-stay-relevant-in-a-changing-world.html "How banks can stay relevant in a changing world") UK authorities. It is also worth remembering that financial content [shared on social](https://www.financedigest.com/social-trading-is-the-new-way-that-gen-z-are-getting-their-share-of-the-pie.html "Social Trading is The New Way That Gen Z Are Getting Their Share of The Pie") media should stay as informative only and doesn’t stray into “advice”. Whilst many influencers in the UK do have finance backgrounds, not all are [qualified to provide proper financial](https://www.financedigest.com/award-advice-financial-services-can-qualify-for-tax-shelters.html "Award Advice – Financial Services Can Qualify For Tax Shelters") guidance. Ultimately, how brands choose to engage with content creators [must be underpinned by a thorough understanding](https://www.financedigest.com/finance-execs-must-understand-ai-or-risk-falling-behind.html "Finance execs must understand AI or risk falling behind") of both the changing regulatory guidelines and how the content provided by a Finfluencer is presented. This way, the integrity of the [brand and the influencers themselves is maintained — not to mention the provision of quality information to their followers](https://www.financedigest.com/10-million-to-be-whipped-into-ice-cream-brand-four-winters-following-acquisition.html " Million To Be Whipped Into Ice Cream Brand Four Winters Following Acquisition "). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---