21 February 2024
Limited financial knowledge, minimal interaction with regulated financial advisors, and a preference for obtaining information through digital platforms are driving Generation Z youth to engage with the content of financial influencers, or so-called finfluencers. These are some of the findings from the new report by CFA Institute, "The Finfluencer Appeal: Investing in the Age of Social Media" - which delves into the growing influence of finfluencers on the decisions of young investors.
"One of the key insights from the study is the dual nature of finfluencers: on one hand, they offer engaging and accessible financial advice; on the other, they introduce risks associated with misinformation and unreliable guidance due to low barriers to entry. This requires a concerted effort from all involved parties - professionals, investment firms, and regulators - in promoting a culture of accurate information and responsible advising, for the benefit of investors," stated Giuliano Palumbo, CFA, President of CFA Society Italy, commenting the report.
The report and the related press release appeared on Il Sole 24 Ore Plus (print edition), Advisor, Citywire, and InvestireMag.