Chris Blower, Telecommunications and Finance Client Partner at Awin
Over the past few years, financial advice has expanded into a new territory: social media. For many young consumers, TikTok and Instagram are increasingly becoming the go to source for financial information. In 2024, #FinTok video views alone surged by 275% year-on-year. This explosive growth reveals a powerful appetite for bite-sized, accessible financial education.
But with this growing popularity comes some pitfalls. Earlier this year, the UK’s Financial Conduct Authority (FCA) tightened its stance on the illegal promotion of financial advice online. This has raised a critical question for FS brands: is partnering with finfluencers still viable?
The short answer is yes, but only with care, compliance, and a well-thought-out strategic approach.
The power of finfluencers
Finfluencers have gained popularity by simplifying complex financial topics on popular platforms and making a somewhat complicated field feel more accessible and engaging. Unlike traditional institutions, they often speak with authenticity and relatability, which resonates more with people, especially with Gen Z. In fact, 2024 FCA research shows that 62% of 18–29-year-olds follow financial influencers, or “finfluencers,” with 74% saying they trust the content shared.
So, what’s driving this change? Micro and nano influencers, in particular, often cultivate close-knit communities. Their smaller but engaged followings create a level of trust that larger corporate voices struggle to replicate. For financial brands, especially those without expansive marketing budgets, this can be an effective avenue to connect with audiences who might otherwise be unreachable.
The compliance challenge
While the opportunity is apparent, so are the risks. The FCA’s enforcement signals that financial promotions, whether from an institution or an influencer, must be held to the same standards. That means clarity on disclaimers, honesty about risk, and transparency on whether an influencer is regulated or not.
To mitigate these risks, brands are increasingly turning to the affiliate channel. While ROI-driven performance tracking was once the primary draw, companies are now also benefiting from the safeguards built into advanced affiliate platforms. Affiliate platforms are taking a proactive stance on compliance, implementing rigorous onboarding procedures that require publishers to verify their identity, provide detailed account information, and undergo background checks before approval. As a result, advertisers maintain greater control, ensuring they partner only with affiliates who meet regulatory standards and uphold brand values. On top of initial vetting, compliance must be ongoing. Brands need to establish robust monitoring processes, such as implementing brand compliance tools, to catch anything that breaches guidelines. If an influencer does not respect guidelines, the content and the relationship must be reviewed swiftly to avoid reputational damage, allowing brands to protect consumer trust and reduce risk.
Best practices for working with finfluencers
Use the right platform: TikTok has become a go-to hub for creators supporting financial literacy, and Gen Z audiences have become increasingly exposed to finance-related content on the platform, with video-based education proving especially effective. For financial institutions, this opportunity cannot be ignored. The natural next step is to engage in these authentic and approachable formats while maintaining professionalism and accountability.
Get clear on KPIs: Before entering into a partnership with a finfluencer, financial firms need to be clear about what they are trying to achieve. Some campaigns will be focused on immediate results, such as encouraging sign-ups or product take-up, while others may be geared towards longer-term goals like building brand awareness and improving audience engagement. Each approach requires its own set of metrics, and being precise about objectives at the outset will help determine how success is measured.
Authenticity above all: Once goals are established, the emphasis should be on building genuine partnerships rather than treating influencer collaborations as one-off transactions. Influencers are naturally focused on creating content that grabs people’s attention and drives engagement, but brands must balance this with compliance requirements and their own tone of voice. Success lies in finding common ground, ensuring that content feels authentic to the influencer’s audience while still meeting regulatory and brand standards.
Test, learn, and grow: Finally, every campaign should be followed by a period of careful review. Post-campaign analysis is essential to understand what worked, what fell short, and what should be adapted for the future. Influencer campaigns often involve a certain level of trial and error; therefore, brands must remain flexible and willing to refine their approach. This cycle of testing and iteration helps ensure that partnerships not only deliver results but also build lasting value and trust.
The takeaway
Despite minor regulatory setbacks, finfluencers are here to stay. Their influence on younger consumers, coupled with the shift in how financial knowledge is shared, makes them a valuable ally for financial institutions. But this value can only be realised if partnerships are built on trust, compliance, and mutual understanding.
The FCA’s crackdown shouldn’t be seen as a deterrent, but rather a call for more stringent standards. Done right, working with finfluencers offers a unique opportunity to boost financial literacy and build meaningful connections with the next generation of investors.
