Finfluencers have the potential to make financial knowledge more accessible. But the quality of their content varies greatly and a lack of regulation can lead to conflicts of interest and false promises.
Opportunities for finfluencers
Finfluencers provide a free and easy introduction to complex financial topics, especially for people who have previously had little to do with traditional advice. According to an article by Business Insider, experts see this as a real opportunity to get an overview of financial topics.
In addition, young people in particular can benefit from this if they have previously had little access to sound financial education. Weber Wirtschaftsberatung also states that many 18 to 45 year olds view social media as a trustworthy source. Finfluencers have become an acceptable alternative to professional advice for many.
Risks
A key problem is that many finfluencers have neither reliable qualifications nor accreditation. Content is often highly generalized and not tailored to individual life situations.
Furthermore, conflicts of interest are often hidden: recommendations can be influenced by commissions, personal investments or paid collaborations without this being clearly marked.
The financial regulator BaFin warns of risks such as exaggerated promises of profits, the trivialization of risks and the use of psychological tricks such as FOMO (“fear of missing out”).
This is how you recognize reputable finfluencers
Reputable Finfluencers not only openly show who they are and what training or experience they have in the financial sector, but also whether and how they are financially connected to their recommendations.
An imprint, clear sources for statements, transparency regarding remuneration and advertising as well as a balanced presentation of opportunities and risks are important indicators.
It is advisable to simply check recommendations in several different, independent sources and not to be blinded by high reach or luxurious presentations, according to Business Insider.
Editorial team finanzen.net
