BT Money Hacks: Are ‘finfluencers’ revolutionising finance?
IN THE last two decades, the rise of social media has introduced new phenomena, including “finfluencers”— finance influencers who impact financial decision-making. These individuals offer advice and information on everything from bonds, equities, and crypto to traditional savings accounts and travel miles. But are they replacing traditional financial advisors?
A recent survey indicates that 79 per cent of Millennials and Gen Zs sought financial advice from “finfluencers” in 2023. With such a significant shift, one cannot help but wonder what the real impact is on traditional advisors in this evolving landscape. In this episode of Money Hacks by The Business Times, Howie Lim discusses this very topic with Brian Seetoh, a financial services manager at PhillipCapital, and Dawn Cher, a leading personal finance influencer known as SG Budget Babe.
The growing influence of “finfluencers”
“Finfluencers” have become a prominent category within the influencer community, garnering considerable traction. According to Cher, social media has taken over many traditional mediums like textbooks, documentaries, and TV shows - serving as a primary source of information for many people. Brian Seetoh points out that “finfluencers” act as entertainers, educators, and community builders. They leverage social media to amplify their reach globally, attracting audiences with engaging, bite-sized content. In contrast, traditional financial advisors usually don’t have such broad, instant reach.
The role of social media
The role of social media in financial education cannot be underestimated. Cher shares that her content aims to simplify complex financial concepts, making them accessible to the average person. Unlike Wall Street analysts who often use jargon, Cher communicates in simple, easy-to-understand language. However, with this ease of access comes the risk of misinformation and fraud. Seetoh warns that while social media has democratised financial literacy, it has also made the quality of information inconsistent.
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The need for regulation
As the landscape evolves, the question of regulation looms large. Seetoh believes some form of regulation is inevitable, requiring a balance to ensure transparency without stifling creativity. Cher agrees, adding that guidelines and regulations could make the industry more beneficial for consumers. Cher also highlights the importance of consumer responsibility emphasising that consumers must tailor the advice they consume to fit their unique situations.
Credibility and integrity
Both Cher and Seetoh stress the importance of credible information. Cher recounts rejecting unregulated sponsorship deals, underscoring her commitment to integrity. She warns that even non-financial influencers can spread financial misinformation if they lack a deep understanding of the subject. According to Seetoh, while advice on social media can be valuable, it’s crucial to cross-reference it with local regulations and consult multiple sources before making decisions. He believes a professional financial advisor can often provide more personalised and cost-effective advice.
As social media continues to revolutionise how people consume financial information, the roles of “finfluencers” and traditional financial advisors are still distinct but increasingly overlapping.
Listen now to find out how traditional advisors and “fininfluencers” can co-exist and how you can benefit.
For more episodes, go to bt.sg/moneyhacks and if you have feedback or an episode idea, please get in touch at btpodcasts@sph.com.sg.
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Written and hosted by: Howie Lim (howielim@sph.com.sg)
With Dawn Cher, SG Budget Babe, a leading personal finance influencer based in Singapore and Brian Seetoh, financial services manager, PhillipCapital
Edited by: Howie Lim & Claressa Monteiro
Produced by: Howie Lim
Engineered by: Chai Pei Chieh
A podcast by BT Podcasts, The Business Times, SPH Media
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