Contact

News & Insights

The Rise and Fall of the Finfluencer

Whilst social media has presented many with the opportunity to learn new skills and enrich their understanding of complex subjects, the increased access to knowledge it has provided has also resulted in some counterproductive developments, particularly when it comes to the financial services industry. Popular social media outlets such as TikTok and Instagram have provided individuals with the ability to present themselves as ‘financial experts’ and reach large audiences with their short-form video content and static posts advising on how to invest, save, and establish a financial plan. Whilst this is not necessarily inherently harmful, the risk of misinformation being spread by those without the necessary qualifications and experience is significant and can have severe real-life consequences.

Unrealistic Expectations

Once a social media personality amasses enough followers or engagement on their profile to generate considerable interest, they are able to generate income from their content through sponsorship or promotions. In order to attract this following, many ‘finfluencers’ promote ‘easy ways’ to ‘make six figures a month’ or ‘retire before 40’ through investing or other financial schemes. Unfortunately, whilst these goals are entirely unrealistic, the methods that these influencers advocate, such as investing in cryptocurrency, are often very accessible to the young and inexperienced. This vulnerable audience is drawn in by the lure of the promise of quick, easy money before making snap decisions without adequate consideration or professional advice, with costly repercussions.

What is being done about it?

The FCA has reportedly removed 10 times the number of financial promotions this year compared to 2021 and is monitoring the situation carefully. They are also in the process of implementing greater screening powers and tightening up the regulations surrounding this fairly recent phenomenon, in the hopes that there will be more restrictions on what creators are allowed to post. However, it seems that areas such as Cryptocurrency, which still lay outside the FCA’s remit, will continue to pose a problem for the foreseeable future.

Trust the Experts

There is no denying that starting financial planning early on is beneficial and that investing can be incredibly lucrative if done properly. However, financial planning is also an incredibly complex and circumstance-dependent profession that takes years of training and experience to become adept at; there is no substitution for bespoke, quality advice from a skilled professional when it comes to developing a strategy for achieving financial objectives. The reality of financial planning is that it often requires a long-term approach and that it is patience, communication, and professional advice that leads to success. As the old saying goes, if something sounds too good to be true, it probably is.

If you would like to arrange a complimentary consultation with one of our advisers regarding your financial circumstances and goals, click the link below to get in touch.

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

Deadline For Expats To Secure A Full UK State Pension Extended

Updated: Taxpayers now have until 5th April 2025 to fill gaps in their National Insurance record from April 2006 that may increase their State Pension – an extension of nearly 2 years – the government announced today (12 June). Extending the voluntary National Insurance contributions deadline until 2025 means thatyou now have more time to […]

Read More

In the Absence of the Investing Golden Goose Play the Long Game

CoinsOn many occasions, lay investors have a tendency to confuse banking and property revenues as useful gauges of the overall strength of the investment economy. But, however healthy (or unhealthy) these two sectors appear, this should not be allowed to cloud the investment opportunity available to you via your expat financial services manager.

This is why we should not be overly concerned that returns in banking investments currently sit below historical averages – what this potentially marks is simply the residual impact of the 2008 financial crisis and the fact that banking and the wider investment economy have evolved with the advent of new and disruptive players in the finance sector.

For example, a new piece of research by Accenture showed that in 2005 there were 24,000 firms operating in the worldwide banking industry; today this stands at around 15,000. But this alone cannot be seen as a true reflection of the current climate because during the same period we have witnessed the dawn of 600 FinTech firms, 1,900 payment institutions, 700 new banks, and 400 subsidiaries of existing banks – there has also been some consolidation in the area.

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information: