Could a new era of financial advice be taking place on social media?

In this AFR article, attention is drawn to the debate on whether social media is a viable platform for ‘finfluencer’s’ to be providing financial advice to followers. 

Platforms like Instagram and TikTok give audiences access to tips and tricks at their fingertips. The educational benefits of these platforms have seen an ongoing trend with the short and snackable content that is being produced by creators being easy to access and easy to digest.

Lucy Dean at the AFR writes “Social media finance influencers have heeded the corporate cop’s warnings and are signing up to the financial advice licensing regime in a bid to garner credibility and operate with confidence.”

Popular “finfluencer” – Natasha Etschmann is a content creator that has been authorised to provide general advice. This agreement is under an arrangement with the financial planning firm Guideway and gives permission for Natasha to post on her accounts with financial advice.

Guideway chief executive officer Alex Aracas talks about the value of advice - “Fundamentally, we see better-informed consumers in time will make better financial decisions, and when the time comes where they actually require advice ... it’s much easier for them to see the value in advice.”