March 28, 2024
Financial influencers pushing high-risk and scam investments without flagging the risks aren’t empowering their followers. Instead, they’re harming them, often unknowingly.”

— Gabi Slemer, CEO & Founder, Finasana

LONDON, UNITED KINGDOM, January 6, 2022 /EINPresswire.com/ — The Financial Conduct Authority (FCA) released a report examining the behaviours and motivations of self-directed investors who make high-risk investments. According to the research, a younger, more diverse group is engaging with higher risk investments, spurred by the accessibility of investment apps and financial advice on social media.

However, the FCA notes that higher-risk products may not be appropriate for this consumer group. Almost two-thirds say that significant investment losses would have a “fundamental impact” on their lifestyle and future.

The Gen Z, Millennial, and first-time investors that make up this group are targeted by finfluencers – financial influencers. At best, finfluencers aim to empower their followers with simplified personal finance and investment guidance and inspiration. At worst, they provide unqualified, prescriptive advice without a disclaimer, sometimes even promoting specific investment products for their own financial gain.

Finfluencers are rife across YouTube, Instagram, Twitter, Reddit, and TikTok. On TikTok, hashtags #StockTok and #FinTok have been viewed over 1.4B and 420M times, respectively.

“Financial literacy is important, and…

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