According to a study conducted by Forbes, nearly 80% of young adults turn to social media for financial advice. Moreover, 76% of millennials and Gen Z stated that financial topics have become less taboo and more approachable due to the prevalence of financial information on social media.
A huge credit for this perception and shift goes to financial influencers commonly known as finfluencers. But how exactly are they changing the way people trade or invest? Let’s take a closer look.
What (and Who are Finfluencers)?
First things first, what or who are finfluencers? These are content creators who offer advice on stock investing, cryptocurrency trading, budgeting, and personal finance. They use social media platforms, such as YouTube, Instagram, Twitter, and TikTok, to reach a mass audience.
From a 20-something trader sharing strategies for Bitcoin mining via TikTok livestream to an accountant sharing tax hacks on YouTube shorts, finfluencers are improving financial literacy.
How Finfluencers Garner Attention
Finfluencers create engaging and relatable content. They collapse complex market ideas into ultra-short formats, such as 30-second TikTok clips. They pique curiosity with one-line headliners, engaging graphics, and rapid cuts.
In comparison to traditional brokerage ads, a finfluencer aims to build a casual yet authentic relationship with their audience. They share personal stories about wins and losses and bring pop-culture references into explanations. As a result, millennials and Gen Z are more likely to follow the advice of finfluencers.
Easy Entry Point
The psychological barrier of “I don’t know where to start” holds many people back from investing and trading. Finfluencers carve out an easy entry point by simplifying financial information. Don’t know how to open a brokerage account? No worries! A YouTube tutorial will walk you through all the steps.
The simplification of financial information has changed the market in two ways. First, the pool of participants widens. Students, gig workers, and side hustlers start investing with as much as they have. Second, trading frequency and innovation rise. Users are now experimenting with crypto tokens or robo-advisors.
Instant Information Pipelines
What does the traditional information route in the investment landscape look like? Earnings are recorded, journalists craft articles, brokers update their notes, and investors finally react. Finfluencers can compress this journey.
Finfluencers instantly post their reactions to relevant economic news. They keep their audience informed through Tweets and Instagram stories. They share screenshots, alternative data, and expert perspectives to help investors capitalise on high-value opportunities.
Want to Become a Finfluencer?
If you’re passionate about simplifying financial information and driving innovation, becoming a finfluencer can be a great option. Follow these tips to get started:
- Choose your niche. It could be tax efficiency, crypto, ETFs, or budgeting.
- Learn local laws and platform policies before posting content.
- Join an influencer program offered by a reliable trading broker. Many finfluencer programs offer capital per month for creating and posting content.
- Create engaging and relatable content to build a strong audience.
- Stay consistent. Create a comprehensive content schedule and stick to it. Track your engagement metrics and optimise accordingly.
Becoming a finfluencer can help turn your passion and social media presence into a lucrative income source.
