Financial services providers must act decisively to regain their role as key influencers in young people’s financial education, according to the latest Young Money report from reputation management consultancy MRM.
Despite ongoing economic challenges, optimism among young people in the UK remains high, with nearly two-thirds (63%) expecting their standard of living to improve over the next year. However, a staggering 90% of 18–30-year-olds say they need more support in managing their finances.
The report reveals that young people view financial services providers as pivotal in providing financial education. Nearly half (47%) of respondents believe these institutions should lead the way in offering guidance – matching the role they expect schools and colleges to play.
Notably, financial providers are seen as more influential than personal responsibility (36%), although family guidance remains significant for 41% of those surveyed.
DOMINANT SOURCE
Social media emerged as the dominant source of financial information, with nearly half of respondents (45%) citing it as their go-to platform.
Direct communications from financial service providers – via email (33%) or in-app messages (29%)—ranked second, while traditional media like newspapers (24%) and television (23%) lagged behind.
FINFLUENCERS
A key driver of social media’s dominance is the rise of “finfluencers.” Six in 10 young people (59%) report following finfluencers, with the number surging to 74% among young Londoners. Trust in finfluencers is remarkably high—77% trust the information they share, while only 3% express skepticism.
These figures align closely with the 2022 Young Money report, which informed the Financial Conduct Authority’s (FCA) tougher social media promotion rules proposed in July 2023.
Alarmingly, 14% of young people admitted taking financial action solely based on advice from online influencers. This underscores the growing need for credible, regulated guidance in a space where unverified and, at times, harmful advice can thrive.
CALL TO ACTION
Chris Tuite, Director and Head of Consumer Finance at MRM, says: “The message from young people is unequivocal. They want financial services firms to step up and reclaim their ‘finfluence.’ Reliable, real-world financial guidance is essential, and young people expect these firms to deliver it.”
And he adds: “While many social media influencers provide helpful tips, others share unverified and potentially harmful advice. Although the FCA has started cracking down on rogue finfluencers, there is still much to be done. Trusted financial institutions have an opportunity to fill this void with credible, actionable guidance to help young people build stronger financial foundations.
“Our research shows financial services providers are present on social media but struggle to command the same engagement as finfluencers. The industry must rethink its approach by creating relevant, engaging social content that prioritizes guidance over gamification or instant gratification.
“The industry has a unique opportunity to rise to the challenge. By delivering the kind of content young people are asking for, financial services providers can not only regain their influence but also play a vital role in shaping the financial futures of the next generation.”
