Consumers should seek regulated advice rather than listen to ‘finfluncers’ when making important financial decisions, according to LifeSearch chairman Tom Baigrie.
Recent years have given rise to the ‘finfluencer’ – an influencer typically on social media platforms who offers younger demographics easy to digest financial advice.
But a survey of 2,000 UK adults carried out by investment brokerage XTB found 33% regret taking advice from these kinds of influencers who respondents now believe overstated their credentials.
Finfluencers were most popular with millennials and younger, with more than half (53%) of under 35-year-olds taking their finance advice from social media, compared to just 24% of those over the age of 35.
However, nearly half (46%) of respondents found the volume of online finance advice overwhelming, and could not identify who was legitimate, while nearly a third (29%) spent less time verifying the credentials of online finance experts, compared to those they met in person.
Commenting on the findings, Baigrie told Health & Protection that social media remains a “new frontier” for financial advice.
“That means that the cowboys, crooks and snake-oil sellers may appear to be far more advanced in their sales tactics than honest traders,” he added.
“Until the regulator finds a way of holding those who sell through influencing to the same standards as those who advise, and I wouldn’t hold your breath, all consumers can do is remember the first rule of anything: if it seems too good to be true it is. And if you can’t tell what true looks like, then take regulated advice. There’s plenty of it about if you look.”
