Young people turning to Tiktok for financial advice as FCA weeds out bad actors
Young people are increasingly turning to social media sites, such as Instagram and Tiktok, rather banks and other regulated sources for financial advice, a new survey has revealed.
The survey by Deloitte, exclusively shared with City A.M., revealed that 25 per cent of 18 to 24-year-olds now turn to social media for guidance and advice on financial matters because they are too embarrassed to seek help from banks.
Around 20 per cent of this age group also admitted to investing money based on recommendations they have gleaned from their digital feeds.
Margaret Doyle, chief insights officer for financial services at Deloitte, said the rise in people trusting unregulated sources is “troubling”.
“With the rise of technologies like deep fakes, relying on social media for advice makes people vulnerable to scams, phishing, and risky financial decisions,” she said.
The survey of over 2,500 Brits comes as the Financial Conduct Authority (FCA) cracks down on ‘finfluencers’ and companies peddling misleading financial products on social media.
In July, the FCA said it is set to roll out new social media guidance to modernise regulations surrounding the promotion of financial products online and ensure consumers can reach trustworthy information to make informed decisions.