Less than a third (30%) of Gen Z adults seek advice from financial specialists, whereas almost half (48%) get their knowledge on investing and related subjects from social media.
Cost is a significant deterrent for Gen Z investors seeking advice from a personal financial advisor, according to the Chartered Financial Analyst (CFA) Institute. They are therefore looking for a more cheap option, and resorting to “finfluencer” (financial influencer) material.
Why Gen Z’s preference towards social media matters
Based on an investigation conducted by the CFA Institute, a mere 20% of finfluencer content featuring investment advice disclosed any information about the influencer’s professional standing or if they were compensated for advocating particular items. This suggests that individuals on social media may be taking biassed or erroneous advice.
The potential for misinformation to propagate and the likelihood of falling for scams make Gen Z’s reliance of social media as a primary source of financial guidance concerning.
What this means for brands
By portraying staff members as financial gurus on social media, brands may actively engage Gen Z in education. Workers can provide reliable, unbiased guidance and precise information.
Following the digital news, the cost of seeking professional financial advice is a big impediment, but businesses have an opportunity to step in and provide younger consumers with low-cost or free financial education.
One of the most often used social media sites for Gen Z to learn about money is Reddit. Companies can reach younger consumers by participating in online forums and promoting financial literacy.
Key quote
“If 18% [of Gen Z investors] are more likely to be influenced by social media, then that’s where the great advisers and educators in the financial advice industry need to be,” Partnership Development Manager at The Openwork Partnership, Robyn Allen states.
Delving deep, see WARC’s most recent Industry Snapshot report for other developments that will affect financial services marketing tactics. Part of the Evolution of Marketing programme, which gives marketers insight into new trends and big changes in the industry, the research is based on WARC’s own GEISTE methodology.
