FINFLUENCERS, SOCIAL MEDIA AND FINANCIAL ADVICE - A RECIPE FOR...?

FINFLUENCERS, SOCIAL MEDIA AND FINANCIAL ADVICE - A RECIPE FOR...?

Earlier this year Tik Tok was flooded with videos claiming to teach people how to ‘get rich quick’ with viral trend, the ‘Chase Bank Glitch’.

It involved depositing fake cheques and withdrawing large sums of money people never had.  The consequences were devastating: fraud charges, frozen accounts, and lives upended, all because advice on social media.

It’s an extreme case, but it highlights a larger issue. Just like these people in the US, more Australians are turning to social media for financial advice or opportunities. As I spend time in our branches or contact centres, I am astounded by the number of customers wanting to invest their hard earnt money into schemes they heard about on social media.

On the other hand, my time with customers has shown me there is also a real thirst, and need, for financial literacy and practical budgeting tips and tools.

In 2024, Australians viewed finance videos over 21 million times on TikTok as they sought information from “finfluencers” on budgeting, investing, and saving.

And it’s no wonder younger people are turning to these creators - they’re filling a gap that has been left wide open. They are relatable, simple, fun and shareable.

When I see some of the helpful trends like underconsumption core or the 48-hour rule, I reflect that they’re nothing new. They’re tips my generation have been practicing for most of our adult life, just dressed up in a more entertaining and engaging way for a younger audience.

So what’s behind this disconnect? 

Today only around 10% of Australians get professional financial advice from accredited sources while the rest of the population struggle to access quality and affordable personalised financial planning. 

In the UK, banks have stopped providing financial advice, and CEBR research showed that 73% of the population now falls below the financial literacy benchmark. Bank terms and conditions are now deliberately written at an 11-year-old's reading level. It’s unsurprising that people are turning to social media for advice – its free, accessible, engaging and convenient.

But… what happens when the advice isn’t accurate—or worse, reckless? Content that suggests a risky strategy without understanding someone’s individual circumstances could be crushing.

Clearly this is where the opportunity lies. Social media has already broken the taboo around talking about money, but instead of leaving the financial education to finfluencers, credible financial experts need to get in the game and communicate in a way that resonates with customers — especially younger ones.

That means ditching the jargon, getting creative with content, and offering guidance that’s both reliable and engaging. Why not borrow a little of that influencer energy? Think short videos, interactive tools, or relatable stories that connect with everyday financial struggles. And as the cool kids tell me, if you can’t say it in less than 20 seconds, you’re doing it wrong.

I’m throwing the challenge back to myself and my own team as much as anyone, but I’m interested in what you think. How can we take this hunger for online financial advice and turn it into a movement that helps Australians make smarter, more confident decisions about their money?

 

Peter Veal

Spinner of Yarns (Freelance)

1d

It's a Big No Way from me! When ever someone tries to sell me a get rich scheme - specific share, Bit Coin, or whatever, well I immediately think if it's so good why are you telling me, and why do you have the motivation to be pestering little old me? Why aren't you living the high life in some flash exclusive secluded and oh so dull place? There is no such thing as get rich quick. But there is such a thing as investing over extended time frames and gradually having compounding interest work on your side for a change.

Soetrisno (Sui) Wongso

20 years Retail management experience

2d

Awesome work and Fantastic Champ 😁 😅 🤣 😂 😍

Marcus Penney

Business Consultant @ Coach Consulting

3d

While social media can certainly be a valuable tool for financial education, it’s important to approach it with a critical eye. Platforms like Facebook, Twitter, and Instagram offer a wealth of information, from tips on budgeting to insights on investing, often presented in engaging formats. However, the rapid spread of information can also lead to the dissemination of misinformation or oversimplified advice that may not suit everyone's unique financial situation. To maximize the benefits of social media for financial education, it’s essential to verify the credibility of the sources you’re following. Look for content from qualified financial professionals, reputable organizations, or established educational platforms. Additionally, engaging with diverse perspectives can enrich your understanding, but always cross-reference information with reliable resources, such as books, academic articles, or certified financial advisors.

Social media is a great place to start, but it shouldn’t be your sole resource. Always cross-check information with reliable, well-researched sources, and seek professional advice for important financial decisions. Knowledge is vital, but accuracy is invaluable!

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