Can you trust “finfluencers”?

It’s a rapidly growing social media phenomenon in Canada and worldwide. Financial influencers, or finfluencers, use TikTok, YouTube, Instagram and other platforms to reach millions of followers.

Finfluencers’ posts and videos cover a variety of financial topics, from budgeting to investment strategies. According to the Canadian Investment Regulatory Organization (CIRO), about 28% of Canadians use social media, forums or finfluencers for financial information and advice.¹

Users can benefit

A key reason for the trend is that finfluencers make finance relatable. They take information their audience may have otherwise found dry or daunting and create content that’s engaging, concise and easy to understand. When that information is accurate, finfluencers can increase their followers’ financial literacy, helping them become better savers and investors.

When followers are at risk

Finfluencers are not regulated. One could be a qualified professional educating users on Tax-Free Savings Accounts (TFSAs), while another could be a scammer luring victims to a fraudulent investment. Some social media users may be prone to accepting advice simply because a finfluencer has tens or hundreds of thousands of followers—advice that may or may not be appropriate or trustworthy.

Perhaps the greatest concern is that financial decisions depend on various personal factors, and finfluencers are in a weak position to offer customized solutions.

Any time you see a finfluencer’s post that has you wondering, you can ask us to assess the content. Also, if you have any family members who rely on finfluencers, you may want to warn them to be cautious.

 

¹ CIRO Office of the Investor, “Investor Survey,” 2024.