Individuals are turning to social media to inform and support decisions on credit, budgeting, investing and more. Capital One’s research finds that while social media means greater access to financial information, it does not necessarily lead to good financial outcomes.

13.7% of UK respondents said they now use social media as a resource for financial guidance, with more men relying on the channel as a source.

However, 74% of respondents who followed the guidance ‘lost money or experienced an undesired outcome.¹  Do financial marketers have a responsibility to safeguard financial marketing?

Risky financial decisions set to rise?

The PIMFA Under 40+ Leadership Committee Report also found that 65%² of those who actively follow ‘Finfluencers’ considered making financial decisions based on social media advice. The findings are backed up by The London Foundation for Banking & Finance’s research, which revealed use of social channels and influencers as a source of financial information is growing.

85% of respondents said they want to improve their financial situation, but only 2% said they receive their financial information from banks or financial services providers.³

Millennials and Gen Z’s are increasingly making Finfluencers on Instagram, TikTok and YouTube their go-to sources for financial advice,⁴ as they use relatable and engaging content on topics such as complex investments, foreign exchange trading and cryptocurrencies.

Their community-minded, entertaining personalities are a strong pull for younger audiences.

Raising awareness of regulation

But more is to be done in making people aware of the financial regulations in place and the dangers of using unregulated advice and guidance.

While Capital One found 25.9% of respondents were already using traditional banks and financial advisors as their most popular sources on social media, it means almost three quarters are not using experts.⁵

TikTok videos tagged with #financialadvice have been viewed over 320 million times. The platform has now introduced a disclaimer, encouraging users to make informed financial decisions, but it cannot regulate such content.⁶

Meanwhile, YouTube receives over 30,000 searches a month related to ‘financial advice’, but analysis shows that almost 80% of financial content is given by someone with no qualifications recognised by the FCA, and many did not contain disclaimers or affiliate disclosures.⁷

Barclays also found that half of retail investors don’t carry out regular checks when using Finfluencers’ guidance, despite over half of investment scams taking place on social media.⁸

The gap between those who need financial advice and guidance and those who can afford it remains; people need ‘easy to digest’⁹ information from regulated providers.

The FCA has already brought charges against nine individuals alleged to have promoted an unauthorised, high-risk investment product on Instagram.

How should marketers respond in 2025?

1. Financial services can play a part in financial literacy: such as using content and owned marketing channels to educate people on how to spot bad or unregulated advice. It should explain what makes advice / guidance trustworthy, and what forms are delivered through social media. This also helps to place emphasis on your own credibility and expertise. For example, highlighting that advice is always bespoke and requires individual goal creation, so it cannot be delivered through social media. You can also explore which financial topics are riskiest to get involved in without the support a personal adviser.
2. Individuals can also be advised that when interacting with ‘finfluencer’ content, they should search for FCA registration (in the UK), and look for AD/ #AD tags in captions (indicating sponsored or affiliate content). These tags should always be above the fold in descriptors. Barclays has already made a call for change, positioning ‘finfluencing’ as an industry-wide issue on the FCA’s advice / guidance boundary review (such as being able to suggest investment recommendations to customers on a ‘people like you’ basis) and the creation of an FCA-accredited badge to help investors identify suitable products.
3. There’s a widening gap between people who need fantastic finance advice and guidance – and those who can actually afford it. If you want to serve the segment who needs your help the most (and protect them from bad actors) you should think about how you can deliver this in easy-to-understand terms. Think bitesize education.
4. Financial brands also need to consider expanding into channels they may previously dare not have in their marketing mix, such as TikTok, Reddit and Instagram. These channels can be used to raise awareness of the FCA’s ScamSmart Investment Checker, Action Fraud’s abilities and when to use the Financial Ombudsman.

If you want support with resonant content and marketing strategies, get in touch today. And if you want to receive the Five Financial Marketing Trends for 2025 report, contact tony.dickson@editionsfinancial.co.uk.