Over a third (38%) of young adults aged 18-34 have expressed trust in financial information shared by social media personalities, including influencers on platforms like TikTok, YouTube, Instagram, X (previously known as Twitter), and Reddit. This sentiment is also shared by nearly a quarter (21%) of those aged 35-54, as reported by the Personal Investment Management and Financial Advice Association (PIMFA).
The association’s recent ‘Under 40 Leadership Committee Report’, released last Thursday (14 December), revealed that a significant 67% of individuals aged 18-34 have engaged with financial content from social media personalities.
Furthermore, the report indicates that over half (57%) of existing clients and 64% of individuals with investable assets exceeding £500,000 have encountered financial posts on social media platforms.
Interestingly, nearly half (49%) of those under 45 are open to, or have already, made financial decisions based on advice from these social media ‘finfluencers’.
These findings from PIMFA arrive six months after the Financial Conduct Authority (FCA) proposed new guidelines for social media use. The FCA recognised the role of social media in enhancing communication between firms, clients, and consumers. However, it also highlighted concerns that low-quality financial promotions on these platforms could lead to significant consumer harm, given their broad reach and the intricate nature of financial services.
The FCA was anticipated to finalise its proposals within the year, but the outcome of these deliberations remains unpublished as of now.
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Approved by the Openwork Partnership on 29/12/23
