Nearly half (48%) of Gen Z learn about investing and financial topics on social media, while less than a third (30%) turn to financial professionals.

The Chartered Financial Analyst (CFA) Institute reports that cost is a major barrier to accessing a personal financial advisor for Gen Z investors. As a result, they are turning to ‘finfluencer’ (financial influencer) content as an affordable alternative.

Why Gen Z’s preference towards social media matters

According to a CFA Institute analysis, only 20% of finfluencer content that had investment recommendations included any form of disclosure, such as the professional status of the finfluencer or whether they received payment for recommending certain products. This means social media users could be following advice that is inaccurate or biased.

Gen Z’s use of social media as a key source of financial advice may also be a cause for concern due to the spread of misinformation and the potential to fall victim to scams.

Why Gen Z’s preference towards social media matters

According to a CFA Institute analysis, only 20% of finfluencer content that had investment recommendations included any form of disclosure, such as the professional status of the finfluencer or whether they received payment for recommending certain products. This means social media users could be following advice that is inaccurate or biased.

Gen Z’s use of social media as a key source of financial advice may also be a cause for concern due to the spread of misinformation and the potential to fall victim to scams.

What this means for brands

• With cost being a significant barrier to accessing professional financial advice, there is an opportunity for brands to step in and offer free or low-cost financial education to younger consumers.
• Brands can play an active role in educating Gen Z by presenting employees as financial experts on social media. Employees can be a trustworthy source of accurate information and unbiased advice.
• Reddit is one of the most popular social media platforms that Gen Z uses to learn about finances. Brands can tap into online communities to encourage financial literacy among younger audiences.

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” – Robyn Allen, Partnership Development Manager at The Openwork Partnership.

Go deeper

Explore more trends set to influence financial services marketing strategies in WARC’s latest Industry Snapshot report. The report is based on WARC’s proprietary GEISTE methodology and forms part of the Evolution of Marketing programme, which provides marketers with insight into emerging trends and significant shifts in the industry.