gradsingapore's Employer Soundbites aims to share quick thoughts from employers on current industry trends, hiring insights and useful tips for fresh graduates looking to kickstart their career on a high note.

About the Interviewee

Darien Lee is a financial representative at Phillip Securities Pte Ltd. He majored in Finance and Investments back in Temasek Polytechnic before moving on to graduate from Nanyang Technological University with a Bachelor of Accountancy. He is part of a team that is collectively servicing over $250 millions in assets and over 5,000 clients. During his free time, Darien enjoys meditation and volunteering work.

---

Social media has become a vital tool in financial education, with around 35 per cent of users now turning to the Internet, including social media platforms, to learn about finance and savings. Platforms like YouTube, Instagram, and TikTok make financial advice accessible by allowing financial experts, more commonly referred to as “finfluencers” to share practical tips and simplify complex financial topics into bite-sized content.

Darien shares insights on how the rise of “finfluencers” is impacting the financial advisory industry and the potential for collaboration between “finfluencers” and financial institutions.

Driving force behind finfluencers popularity

Finfluencers have transformed how financial information is shared by breaking down complex topics, like budgeting, investing, and understanding the stock market, into short, engaging formats tailored for social media. This approach resonates especially with younger audiences who tend to have shorter attention spans and prefer digestible video content.

By sharing personal experiences and relatable stories, finfluencers create an accessible learning environment that feels more approachable than traditional financial advice. For instance, I remember watching a finfluencer share their journey of budgeting as a fresh graduate. They broke down the process with practical tips, like the '50/30/20 rule,' which felt far more relatable than what I learnt in personal finance modules in school.

The rise of finfluencers has significantly boosted interest in financial literacy, especially among younger audiences. They provide accessible, engaging content that demystifies financial concepts, often offering insights into niche or emerging trends that traditional advisors may not cover. However, the ease of access also comes with risks, as some finfluencers may lack formal expertise, which can lead to oversimplified or inaccurate advice.

Will one eventually dominate the market?

It is unlikely that one will fully dominate the market as traditional financial advisors (TFAs) and finfluencers cater to distinct audiences with varying levels of expertise and financial needs.

Finfluencers tend to attract younger generations, such as Gen Z and millennials, who are early in their financial journeys and often seek accessible, bite-sized advice on platforms like Instagram and TikTok. With fewer complex financial requirements, these individuals may not yet have the resources or need for a traditional advisor, making finfluencers their go-to for financial literacy.

On the other hand, TFAs typically serve individuals with more sophisticated financial needs, such as retirement planning, estate management, or tax optimisation. Equipped with formal training,certifications, and regulatory oversight, TFAs provide a level of security and accountability that is particularly valued when managing substantial assets or complex financial scenarios.

While finfluencers excel at breaking down basic concepts, they are generally not equipped to address intricate financial issues. TFAs’ regulatory framework offers clients protection and professional accountability, which becomes increasingly crucial as individuals’ financial portfolios and demands grow.

In the future, a balanced coexistence is likely, with TFAs and finfluencers complementing each other. TFAs could harness social media to educate and engage younger audiences, extending their influence while maintaining their role as trusted advisors for complex financial needs.

Meanwhile, finfluencers can serve as a gateway to financial literacy, encouraging individuals to seek professional guidance as their financial situations become more complex. This synergy merges the accessibility of digital platforms with the reliability and regulatory assurance of traditional financial advice, creating a comprehensive approach to financial education and management.

How to ensure credible and reliable financial advice? 

As AI advancements enable more tailored financial education on social media, it is crucial to ensure the information remains credible and accurate. While AI-driven algorithms may refine content to align with user preferences and financial goals, there's a risk that finfluencers, who may lack formal training, could oversimplify or misrepresent complex financial topics. One such example would be during the Cryptocurrency 2021 bull run.

For instance, an ex-colleague of mine was swayed by a viral post about a trending cryptocurrency, only to lose a significant amount of money because the finfluencer didn’t provide a balanced view of the risks involved. This highlights the importance of critical thinking and doing one’s own research, even when advice seems attractive and accessible. Investors are highly encouraged to compare the advice given by the finfluencers with reputable sources like government websites, financial institutions, or certified financial advisors to ensure consistency and accuracy. 

These trusted resources follow rigorous review standards and are regularly updated to reflect the latest financial laws and best practices. Additionally, examining a finfluencer's credentials, such as a CFA (Chartered Financial Analyst), CFP (Certified Financial Planner) certification, finance degree, or industry experience, can help confirm their expertise.

It’s also wise to exercise caution with trending advice or quick-fix financial solutions that gain popularity on social media. Strategies that work for one individual may not be universally effective, especially if they ignore important factors like personal risk tolerance, long-term goals, or regulatory requirements. Balancing popular advice with guidance from regulated professionals ensures a more reliable and personalised approach to financial decision-making. This thoughtful approach not only helps in making informed decisions but also fosters a more sustainable path toward financial literacy.

How can traditional financial institutions better connect with the younger generation?

One of the biggest changes in the industry has been the push from the younger generation for digital services from the younger generation. So, it is important for traditional financial institutions to continue to offer compelling solutions for digital nomads, such as user-friendly apps with enhanced features such as automated financial planning, budgeting tools, and real-time investment tracking.

Institutions can further enhance their appeal by providing virtual financial literacy workshops or webinars on topics relevant to younger audiences, like debt management and first-time investing. Interactive webinars, live Q&A sessions, and on-demand financial education also foster a sense of community and support ongoing learning.

Conclusion

The blend of traditional financial advisors and finfluencers offers a balanced approach to financial education, each serving distinct yet complementary roles. Social media has made financial literacy accessible, sparking interest among younger audiences by breaking down complex topics into relatable, bite-sized advice.

However, as financial needs evolve, the expertise and accountability of traditional financial advisors remain essential, particularly for more complex planning and wealth management. By cross-verifying online advice with trusted sources and leveraging both digital accessibility and professional guidance, individuals can make informed financial decisions that support their long-term goals.