The Role of Finfluencers: Are Social Media Influencers a New Breed of Financial Advisors?

Abstract

Over the past few years, social media has become a central source of financial learning for young investors in India. Platforms such as YouTube, Instagram, and X are filled with content that simplifies stocks, mutual funds, budgeting, taxes, and personal finance. Many young people now form their first impressions of investing through short videos, influencer reviews, or market commentary delivered in an engaging, relatable format. As a result, finfluencers who share financial content have become highly visible and influential. Their guidance often feels more accessible than traditional financial advice, leading many first-time investors to rely on them for ideas, reassurance, and market updates. However, conversations with young investors reveal a more complex reality. While finfluencers make financial information easy to consume, many followers struggle to differentiate between education, opinion, promotion, and genuine advice. Young adults frequently express confusion about the credibility of recommendations, sponsored content, conflicting market opinions, and the risks hidden behind seemingly simple investment strategies. Instances of impulsive trading driven by hype, losses due to following unverified tips, or misplaced trust highlight a growing tension between influence and responsibility. Even as followers express strong confidence in their favourite finfluencers, there remain uncertainties about the accuracy and long-term suitability of the advice they consume. This research examines these patterns by exploring how finfluencers shape perceptions and decisions among social media users, particularly Gen Z. The study probes whether these influencers are evolving into a new class of informal financial advisors, individuals who guide investment behaviour without formal certification.