Finfluencers: The new financial gurus driven by the RRSS

Social networks (RRSS) have become the ideal space to share all kinds of information, from which a huge number of influencers talk about different topics. One of the aspects of this information is financial education, which the so-called finfluencers are in charge of viralizing.

The finfluencers disseminate financial information on social networks, with topics as broad as: investment strategies, personal finance management, cryptocurrencies, the stock market, credit bureau, informal savings, fraud and scam warnings, stock purchases, afores and taxes. In some cases the contents are focused on education, other times there are analyses, some are focused on sharing personal experiences in terms of profit and loss or simply tricks to save money.

One of the characteristics of the information shared in networks is that it is available to everyone, and young people prioritize that, since the new generations are usually far from formal financial institutions and economists, finding an option in the finfluencers, who manage to explain complex issues in a simple and even funny way.

The target market for this type of content is usually millennials and centennials, who value the fact that the information comes from someone like them. According to a study on influencers in Latin America, Mexico ranks third among the countries with the highest number of influencers with 443,030 (3.7%), only surpassed by Argentina with 1 million 133,686 (9.4%) and Brazil with 9 million 176,375 influencers (76.2 percent).

Possible risks and suggestions

Despite the aforementioned benefits, financial institutions have warned about taking with caution the information that circulates in social networks, since personal assets could be put at risk.

And the fact is that most of the finfluencers who provide advice on economics and finance are not usually financial advisors or specialists in the field, an activity for which in many countries even a license is required.

In this sense, although it is possible that financial influencers create a rapprochement between the world of finance and the viewers, and provide some guidance regarding some topics, the suggestion is not to make conclusive decisions solely based on the information circulating in RRSS.

In addition, it is important to distinguish whether the information being provided is only an opinion or financial advice. In this sense, the warning is to only take advice from someone who is aware of your personal situation.

Any decision regarding finances requires advice that addresses your particular needs and objectives.

If you want serious financial advice, it is preferable that you go to a specialized advisor. At BBVA we can help you.