18th March 2025

Finfluencers: Friends, Foes, or the Future of Financial Advice?

The financial advisory landscape in the UK is experiencing a notable shift with the emergence of ‘finfluencers’ (social media personalities who provide financial guidance to their followers). This trend has gained significant traction, particularly among younger demographics.

Research from back in 2022 indicated at that time that 62% of individuals aged 18-29 in the UK follow finfluencers for financial advice, with 74% of these followers trusting the guidance provided. This influence, which has no doubt grown since then, has led to tangible changes in financial behaviour: 40% have reduced their spending, 38% have ventured into various investments, 32% have utilised ‘buy now, pay later’ schemes, 29% have started budgeting, and 25% have paid off debts (MRM London).

However, this growing reliance on finfluencers raises concerns about the quality and reliability of the advice dispensed. Barclays’ research reveals that 23% of Brits now turn to social media and online forums for investment guidance. Alarmingly, over half (52%) of investment scams now occur on social media platforms, and 39% of individuals aged 18-24 feel unsafe online due to the prevalence of such scams (Barclays).

In response to these challenges, the UK’s Financial Conduct Authority (FCA) has intensified its oversight. The FCA has interviewed 20 social media influencers under caution as part of its crackdown on illegal financial promotions. This action underscores the regulator’s commitment to addressing the potential risks associated with unregulated financial advice proliferating on social media platforms (The Guardian).

At the same time, the financial advice profession faces a growing challenge: attracting younger talent into the industry. With an aging adviser population and fewer new entrants, there is an urgent need to inspire the next generation to consider financial planning as a career. If properly regulated, finfluencers could play a key role in bridging this gap—engaging younger audiences, sparking interest in financial education, and even serving as a gateway for new professionals to enter the industry.

As the influence of finfluencers continues to grow, it is imperative for traditional financial advisers to understand this phenomenon and its implications for the advisory market. Engaging with this trend, recognising its potential benefits in enhancing financial literacy, and addressing its risks are crucial steps for the industry.

We invite you to participate in our survey below, to share your perspectives on the rise of finfluencers and their impact on the UK financial advisory landscape. Your insights will contribute to a comprehensive understanding of this evolving dynamic and help shape the future of financial advice. The findings will also be shared with the FCA to support discussions on policy and industry development.

If you can't see the survey below, please click on this link.

Panacea Surveys