Should advisors be worried about the rise of 'finfluencers'?

With concerns about inflation, rising interest rates, and potential recession hanging thick in the air, Munier says financial influencers on social media – so-called “finfluencers” – have a captive audience for content that spans the entire spectrum of personal finance. Clients may click on media about minimizing taxes, crypto trading, real estate investment, and getting into the stock market, among many other topics, and algorithms on social media channels will serve up more information based on what they engage with.

According to Emplifi, finance influencers on YouTube gained nearly double the number of subscribers that other types of influencers did for this year up to August. Instagram finfluencers gained more followers than all other influencers.

“Clients are watching and reading content everywhere online – on Instagram, TikTok, YouTube, LinkedIn, you name it – and it comes up in our conversations,” Munier says. “They ask us if they can do things they’ve seen on the internet, or how much it costs, or how it can be done. And it’s up to us as financial advisors to tell them if it’s correct, whether it’s possible for them, what the risks are, and whether it makes sense in their financial plan.”

At Safe Pacific, social media has been a priority from the beginning. Aside from having a good website, Munier and his partner(s) realized the importance of planting their stakes in different corners of the online world. While they don’t jump on every trend, they see the digital world as a new wave that’s here to stay, so they strategically build a presence in new social channels as they come up.

Through their different online properties, Munier says the goal is consistently to demonstrate thought leadership, as well as signal their credibility and expertise. Aside from engaging clients where they are, they also see social media as a way to generate leads and build their book of business.