The number of Gen Zs who trust financial advice provided by “finfluencers” – financial influencers – has slipped over the past year, according to new research.
“Generation aspiration: a fight for financial freedom,” produced by PR firm MRM, has shown Gen Z are becoming more cautious of influencers, with a three-percentage-point drop from the 74% who trusted them in 2022.
Additionally, the number of Gen Z respondents following finfluencers on social media has also decreased, from 61% in 2022 to 51%.
In 2022, just 47% of respondents did further research before acting on a finfluencer’s advice.
In 2023, that number jumped to 79%. Tom Selby, head of retirement policy at AJ Bell, welcomed this increased speculation, but recommended further wariness.
“TikTok is a hugely popular social media platform among young people, but when it comes to helping us make sensible financial decisions it can be like the Wild West,” said Selby.
“It’s therefore vital that anyone taking guidance from a ‘finfluencer’ treats the information they receive with appropriate caution.”
The report said influencers provide Gen Z – those born in the late 1990s to early 2000s – with accessible, real-world advice with a jargon free style.
Only 7% of respondents said they had never acted on financial advice provided by an influencer.
Other sections of the report suggest Gen Z remains similarly cautious of advancing technologies such as artificial intelligence, with 71% of respondents saying they would seek further advice before acting on any financial information they had learned through AI.
Furthermore, almost a quarter (23%) of respondents would not act on or consider any financial advice or information provided by AI.
The research is part of an annual report published in collaboration with media company Mouthy Money. It surveyed 500 people based in the UK, aged between 18 and 30 years.
This article is taken from the Winter 2024 print edition of Financial Promoter. Click here to subscribe.