18.6m UK adults trust financial advice shared on social media, study finds : CityAM

Amid concerns about Kim Kardashian and so called FinTok influencers new research has found that 18.6m UK adults trust financial advice shared on social media platforms.

A survey conducted by Skipton Building Society revealed that just two in five respondents would not trust social media stars when it comes to financial management. Young people were more likely to place their faith in influencers with some 64 per cent of adults under 35, saying they would trust advice shared online and believe it was reliable.

Helen McGinty, Head of Financial Advice Delivery at Skipton Building Society, urged caution stressing that while there are a lot of “well-informed voices and influencers” across social media, “when it comes to investment advice, content isn’t always a trustworthy as it appears, and it isn’t financially regulated.

“It’s vital to make sure that the advice you’re following is reliable and credible, especially when it comes to investing your own money,” she said.

The news comes after the FCA warned investors not to take advice from social media influencers including Kim Kardashian who was recently paid to promote a crypto currency to her 250m online followers.

TikTok recently introduced a stringent ban on financial services advice after influencers were found to be promoting crypto scams and pyramid schemes while dishing out dubious investment tips to their followers.

Iona Bain, broadcaster and founder of the Young Money blog, said he was “increasingly worried” about the influence of social media on young people’s financial management.

“We urgently need proper financial education, better online regulation and more authoritative sources of information to cut through this internet jungle and ensure a whole generation doesn’t end up poorer and disillusioned about money,” he warned.

According to the Skipton survey 50 per cent of adults would prefer to take financial advice from someone they know, helping to explain why investors are willing to put their trust in celebrities.

Respondents reportedly found female parenting and money management influencers the most trustworthy financial advisers online while male crypto investors came across as the least credible.

Read more: FCA chair urges investors not to take cryptocurrency advice from Kim Kardashian