Are You Under the Finfluence?
In the latest MoneySmart study, discover why over half of Hong Kong adults turn to social media for financial advice and how ‘finfluencers’ are steering decisions on investing, saving, and spending in today's digital age.
The study sheds light on an important shift in how people in Hong Kong access and engage with financial content online.
Exploring the Depths: The Most Sought-After Financial Topics on Social Media
Our study looked at the most popular financial topics that people are searching for on social media. Across all age groups, advice on investing (59%), saving (54%), and financial products such as credit cards or loans (33%) proved to be the most popular. However, there were some differences between generations.
While Gen Z are most interested in topics around saving, Millennials, Gen X and Baby Boomers are most interested in learning how to grow their wealth. This is likely due to the fact that these age groups were the most likely to have over 6 months of salary already saved, and are now seeking ways to maximise their returns, while Gen Z have only just recently entered the workforce.
The Rise of the 'Finfluencer'
As people are increasingly seeking out more financial advice online, many are turning to specific financial influencers, or 'finfluencers' for guidance. Globally these influencers are making waves, with an analysis of follower counts from over 800,000 influencers on Instagram and YouTube finding that 'finfluencers' experienced double the follower growth over the past year compared to other types of influencers on these platforms.
Our study found that 40% of Hong Kong adults now follow specific financial influencers on social media for advice, helping them make more informed financial decisions. In fact, 39% said that they trust influencers more than traditional financial institutions when it comes to financial advice.
With almost half of Hong Kongers saying that a financial influencer has motivated them to take more interest in their finances, it's clear that influencers are now playing a significant role in shifting the tides of financial awareness and engagement with financial topics across Hong Kong.
Social Media Is Influencing Our Financial Choices
It’s not just about dipping a toe into financial content online, many Hong Kongers are actively taking real action based on the financial advice that they are exposed to, with a quarter saying that they have changed their spending habits due to social media.
When it comes to impact on investment decisions, social media is guiding many through unfamiliar waters, with varying degrees of success. Almost 2 in 5 (37%) Hong Kongers have made an investment based on advice from social media.
Here’s a look at the top choices and their outcomes:
It's important to remember that although many have seen positive returns, investments come with inherent risk. If you’re thinking of investing make sure you do so via a trusted brokerage platform.
The Risks of Financial Advice on Social Media
As Hong Kongers explore the sea of financial advice available on social media, they must also be aware of the risks that lurk beneath the surface. While social media offers unprecedented access to financial insights, the waters can quickly become murky, with unqualified individuals or even scammers presenting themselves as financial experts.
This underscores the importance of anchoring yourself in reliable sources, like MoneySmart. Just as a seasoned sailor relies on a trusted map, making financial decisions requires the guidance of reputable advice to steer clear of risky waters and avoid falling prey to financial misinformation or malicious content.
How to Make Sensible Financial Decisions and Stay Safe Online
Joe Yu, Chief Marketing Officer at Futu Securities, shares expert guidance on navigating social media investment advice. With extensive experience in marketing and finance, Joe provides practical insights to help investors stay informed, cautious and confident in their financial decisions.
1. Be cautious of bold claims
Some financial influencers exaggerate returns and minimise risks to attract followers, often branding investments as "guaranteed" or "risk-free."
Reputable financial advisors always address both potential returns and associated risks, so be wary of any advice promising guaranteed outcomes.
2. Verify social media financial advice
Joe suggests a three-step approach: check the source, consult multiple sources, and assess the information's timeliness. Always seek professional advice, evaluate risks carefully, and approach decisions with a rational mindset.
3. Do your own research and use regulated platforms
Joe stresses the need for independent analysis of investment advice on social media, urging investors to research market trends, company fundamentals, and industry dynamics for informed decisions. Choose an SFC-regulated brokerage for security, as trusted platforms provide professional tools to support well-informed investing.
4. Stay alert to scams and avoid herd mentality
To avoid scams impersonating legitimate entities such as investment platforms, investors should verify official information and social media links. Be wary of following trends blindly, as impulsive decisions without risk assessment can lead to losses.
5. Balance short-term gains with long-term goals
Set clear financial goals, create a budget, diversify investments, regularly review your portfolio, and constantly expand your financial knowledge.
These steps help pursue short-term gains while securing long-term goals.
Abel Lee, General Manager at MoneySmart Singapore and Hong Kong shares,
“Our study reveals a significant shift in how Singaporeans approach financial advice, with social media now leading over traditional sources. While social media has made financial advice more accessible, unreliable information stemming from unverified sources is a concern. Therefore, in such a landscape, we aim to empower individuals with the tools, trusted guidance, and curated recommendations to make informed financial decisions.”
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Social Media: Your Compass for Financial Guidance
Our study found that social media platforms like YouTube, Instagram, Facebook and TikTok are becoming key channels for financial advice, with many Hong Kongers now preferring these platforms over traditional sources such as family and friends, financial advisors or personal finance books.
As more Hong Kongers navigate social media for financial advice, it appears that these platforms are having a positive impact on knowledge and understanding of personal finance topics. In fact, 42% report that social media has helped them expand their financial knowledge, with 17% checking social media daily for financial advice and tips.
With 56% of Hong Kong adults feeling confident about managing their finances and 59% feeling financially secure, it’s clear that many are successfully treading these open waters.