According to the latest Barclays consumer research, 23% of Brits are now turning to social media, community messaging apps and online forums for investment guidance. But how do consumers know which sources they can trust? 

Barclays Research Findings:

  • 23% of Brits now seek investment guidance on social media, messaging apps, or forums.
  • 40% of young people (18-24) turn to social media for investment advice, with TikTok being the most popular platform.
  • Motivators: Free access to “experts” (19%) and quick, accessible content (26%).
  • Risks: Over 52% of investment scams occur on social media, leaving many feeling unsafe online.

The ‘Finfluencer’ Phenomenon

  • Social media “finfluencers” fill a gap in financial literacy, especially for Gen Z.
  • However, content is often unregulated, with risks of misinformation and scams. Only 49% of Brits regularly verify ‘finfluencers’ promoting investment advice.

Why It Matters

  • Misinformation Consequences: Consumers might make unsuitable financial decisions or fall victim to scams, potentially discouraging them from investing in the future.
  • Advice Gap: A quarter of UK consumers don’t know where to begin investing, turning to social media due to the lack of affordable, accessible guidance.

Barclays’ Recommendations

  • Regulatory Changes: Advocate for banks to provide more personalized investment guidance under updated regulations.
  • Industry Collaboration: Work with governments and regulators to tackle the advice gap and reduce fraud.
  • Education and Protection: Barclays offers tools like the Scams Bulletin and expert commentary to guide and safeguard customers.

Key Advice for Consumers

  1. Verify ‘Finfluencers’: Check their credentials and validate claims through regulated platforms.
  2. Be Cautious of Free Advice: Free doesn’t guarantee accuracy or trustworthiness.
  3. Do Your Own Research: Always cross-check recommendations before making investment decisions.

Investing through trustworthy sources and regulated channels remains crucial for long-term financial success.

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