In a time of uncertainty, social media was a lifeline for many people, greatly influencing their thoughts and actions. Throughout lockdowns and restrictions, people found themselves wanting to invest and save money and found information widely and readily available across social media platforms. The high demand for information has caused an influx of incorrect and potentially risky advice. Although most influencers have good intentions and this has enabled financial education to reach a wider audience, it is more important than ever to ensure advice is informative, transparent, personalised, and most of all, appropriate.
The rise of influencers has been astronomical and the financial space was not left behind. Financial information was readily available on many popular platforms leading to a large up-take in the younger generation. Demand quickly increased for financial and investment advice, and as a result, influencers were quick to act and provide a discussion platform for such topics. At its core this is a positive, however it does not come without issues.
Unfortunately, due to an initial lack of regulation and licensing in this area, consumers may have acted on information that was incomplete or inappropriate for their circumstances. ASIC has been monitoring the effect of financial advice given on social media and has decided to implement stronger regulation in this area to ensure consumer safety.
It is important to note that most of the information provided by influencers is very broad and may not suit your individual goals. Influencers can provide a good basis for learning and starting your financial journey, however, the value of transparent and personalised financial advice cannot be overlooked. A financial adviser personalises and tailors advice to your individual needs. A financial adviser is able to look at all aspects of your situation and financial goals, and provide a personalised financial plan. With the assistance of your financial adviser you are able to build a trusting, supportive relationship that keeps you on track with your goals and enables any concerns to be confidently overcome.
The growth of social media and influencers in this area is unlikely to slow, nor is the need for tailored financial advice. Changes to social media regulation will improve the quality of information available online, but there will always be need for financial advisers and the holistic advice they provide. As always, if you wish to begin this financial journey with one of our financial advisers, please don’t hesitate to give us a call and book an appointment on 02 4929 2552.