Why 18.6 million UK consumers trust financial advice on TikTok, Instagram and Facebook
Research by Skipton Building Society has revealed that 18.6 million UK consumers say that they trust the financial advice that they see across TikTok, Instagram and Facebook with scrutiny mounting on social media platforms.
However, when asked who they would trust the most to provide reliable money management advice, financial advisors, 87 per cent, successful business people, 86 per cent, and spouses, 77 per cent, came out on top.
The research comes after TikTok announced that it would ban financial services promoted on the platform in its latest move to limit bad advice and misleading information online.
Despite 41 per cent of respondents stating that they would not trust social media stars when it comes to financial management, Skipton’s research shows that the majority of 18–34-year-olds, 64 per cent trust advice shared online and believe it is all reliable.
This is in contrast to those aged 35+, with 46 per cent adamant they would not trust a social influencer for financial advice.
This is due to consumers preferring to have a personal connection, 50 per cent, with those they seek advice from, knowing that the advisor understands their personal circumstances, 47 per cent, or knowing someone else who has taken good financial advice, 46 per cent.
Helen McGinty, head of financial advice delivery at Skipton Building Society, said: “When it comes to getting our finances in order, social media can feel like a good place to go for advice, because it’s anonymous and helps avoid conversations which can sometimes feel uncomfortable.
“However, it’s vital to make sure that the advice you’re following is reliable and credible, especially when it comes to investing your own money.
“There is a place for financial education online, and there are a lot of very well-informed voices and influencers across these platforms that do it well, but sometimes when it comes to investment advice, content isn’t always a trustworthy as it appears, and it isn’t financially regulated.
“So if you’re looking to invest or make the most of your pension, it’s worth seeking out professional, regulated advice first.”
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