Influencer marketing platform HypeAuditors has released a study into the fast-growing field of finance-related social media influencers, aka ‘finfluencers’.
The finfluencer world is somewhat controversial, with some influencers being criticised for spreading misleading information, particularly towards young people.
However, the Australian government has declined to step in and regulate finfluencers, with financial services minister Jane Hume saying earlier this yeah finfluers were “an inevitable part of the financial ecosystem” and that “the TikTok influencer spruiking Nokia is not that different to the bloke down at the pub who wants to tell you all about the really great company he just invested in but with a much louder voice.”
What HypeAuditor’s new research reveals is that the continuing finfluencer trend in Australia is predominantly driven by milleniial women.
It analysed engement on hashtags like #moneytok, #stocktok and #finance, ultimately finding that finfluencers make up less than 1 per cent of Australian influecers. However, on TikTok #moneytok still has more than 3.8 million views and #stocktok more than 361 million.
The research goes on to explain that both the influencers and their audiences are primarily female – 34 per cent of finfluencers are women aged 25-34 (compared to 16 per cent who are men). 57 per cent of audiences are female, and 44 per cent aged 25-34. 19 per cent were 35-44.
Interesting, finfluencers aged 35-44 were more likely to be men, at 25 per cent.
The research argues that, “the demographic highlights a trend among mostly female consumers wanting to be educated by influencers who look or seem ‘just like them’, who use layman terms and empower them to become financially empowered.”
The finfluencers with the highest reach and level of popularity are:
Alex Frolov, CEO and Co-Founder, HypeAuditor said, “the finfluencer phenomenon is growing rapidly in Australia, and brands wanting to engage with commercially savvy influencers and communicate with money-conscious consumers are taking advantage of this evolving trend”
“It’s interesting to see this movement driven mostly by millennials, reflecting an ongoing trend of turning to, and trusting online information and sources when making significant life decisions or going through major milestones such as buying a first home, investing in shares for the first time, or re-assessing the best superannuation options. Finfluencers are stepping in where traditional financial institutions or more established enterprises have historically made this information challenging to navigate and action.”
“Amid the rise of the finfluencer, consumers and brands need to practice caution when translating online content into actionable financial advice. While many finfluencers in Australia have a strong finance background, not all are qualified to provide financial advice.”
“For finfluencers with a strong and highly engaged audience, it could become challenging for their audience to know the difference between a finfluencer’s observation or piece of advice for a specific scenario, and their advice for the follower themselves. With more finfluencers joining the scene, brands will need to stay vigilant in determining the most relevant and reliable finfluencers to partner with, and consumers will need to exercise caution analysing financial advice.”