According to the latest Barclays consumer research, 23% of Brits are now turning to social media, community messaging apps and online forums for investment guidance.1 But how do consumers know which sources they can trust? Clare Francis, Savings and Investments Director at Barclays Smart Investor, looks at the growing ‘advice gap’ in the UK – and the subsequent uptick in people turning to ‘finfluencers’ for investment content.
The rise of the ‘creator economy’ has driven a boom in ‘finfluencers’ – influencers who use social media to offer financial guidance to their followers. As access to digital channels becomes more widespread, ‘finfluencer’ content is filling a need for greater financial literacy – particularly among young users who spend more time online than older generations. According to Barclays research, four in 10 young people turn to social media for investment support, with TikTok ranking as the most popular platform for financial advice amongst Gen Z (46% of 18–24-year-olds).
But, what appears to be influencing this trend? According to the data, affordability and accessibility. One in five (19%) consult ‘finfluencers’ because it provides them with “free access to financial experts,” while a quarter (26%) say that this style of content is “quick and easy to use”.
However, seeking unverified online investment guidance can be a risky business. The latest Barclays research shows that ‘finfluencer’ misinformation is becoming a key issue online: over half (52%) of investment scams now take place on social media2, and two in five (39%) of 18–24-year-olds say that they feel unsafe online due to the prevalence of scams3.
