Gen Z goes online, looking for financial knowledge on TikTok

TikTok is seen as central to this shift, attracting 62% of Gen Z to consider it a valuable source of financial knowledge, becoming a place to provide financial understanding.

There is engaging content that makes complex concepts more accessible, although there are also caveats about online influencers offering financial education.

Despite the promise of transformative financial strategies, there are warnings that social media can lead to the spread of financial myths and scams.

This situation raises questions about the credibility and trustworthiness of financial guidance online. About 34% of Gen Z respondents said they were influenced by financial content they viewed.

As the online financial landscape expands, the need for regulatory oversight becomes more urgent. The rise of trusted influencers to those with questionable motives has attracted the attention of regulators.

The UK Financial Conduct Authority is targeting these influencers, focusing on fraudulent advertising and misleading financial advice to protect consumers from potential risks.

Responding to this shift, in addition to reshaping the role of traditional financial institutions, banks are partnering with FinTech companies to provide personalized financial experiences instead of generic solutions. In response, 53% of U.S. retail banking consumers turn to banks for financial advice, a significant increase from the past.

Banks are also focusing on innovating customer interactions, promoting financial literacy among young consumers by equipping families with essential management skills. Personalized service is essential for banks to regain trust in the market.

Meanwhile, financial institutions are also focusing on transparency and accuracy in communication to differentiate themselves from untrustworthy advice online. To combat misinformation and promote financial literacy, banks and financial institutions are adapting to a landscape heavily influenced by social media.