new study According to MoneySmart, social media has become the go-to source for financial advice in Singapore.
More than half (51%) of adults rely on platforms like YouTube, Instagram, Facebook, TikTok, and WhatsApp for financial guidance.
This represents a significant shift away from traditional sources such as family, friends, and financial advisors.
The study surveyed 1,000 Singaporean adults of all ages and found that social media influences important financial decisions.
The most popular platform for seeking financial advice is YouTube (70%), followed by Instagram (44%), Facebook (43%), TikTok (36%) and WhatsApp (31%) .
This trend is especially true among Millennials, 61% of whom search for financial information online every week.
Across all age groups, the most popular topics include investing (59%), saving (59%), and budgeting (39%).
Additionally, the survey found that 21% of respondents have changed their spending habits due to the influence of social media, 30% have started creating a budget, 18% have started an emergency fund, and 12% have increased their retirement savings contributions. It turns out.
Almost one in three Singaporeans (26%) have opened a savings account, and 16% have applied for a financial product such as a credit card or loan after receiving advice from social media.
Rise of the finfluencer
The increased use of social media for financial advice has also led to the emergence of ‘finfluencers’, financial influencers who provide guidance and insight online.
While many lenders focus on general financial education, the Monetary Authority of Singapore (MAS) emphasizes that those providing financial advice must be licensed under the Financial Advisers Act. I am.
This also applies to individuals who recommend investment products or express opinions in exchange for compensation, and to individuals who regularly do so without compensation.
However, general educational content is exempt from these license requirements.
Globally, financial influencers are experiencing significant growth, and an analysis of the number of followers of over 800,000 influencers on Instagram and YouTube found that financial influencers have a higher number of followers compared to other types of influencers. We’ve seen a 2x increase in followers over the past year.
In Singapore, 44% of respondents now follow certain financial influencers for advice, with celebrities such as Adam Khoo, Warren Buffett and Dave Ramsey standing out.
Half of Singaporeans surveyed said financial influencers have made them more aware of their finances, and they credit financial influencers with helping them increase their financial awareness and engagement. It became clear that individuals play an important role.
MAS also pointed out that financial institutions that use finfluencers for advertising must clearly present both the characteristics and risks of financial products and ensure a balance of content.
Complaints about finfluencers are rare, with MAS receiving fewer than five complaints per year over the past five years, but most cases concern individuals who do not provide regulated financial advice.
Combating the rise in misinformation
While social media provides convenient access to financial information and influencers, this study also highlighted potential risks.
Many respondents admitted to making investment decisions based on social media advice, with popular choices including US stocks (40%), cryptocurrencies (35%), and bonds (28%). It was done.
However, 16% of respondents reported losing money on investments due to online advice, and a further 16% reported being a victim of financial fraud.
This highlights the importance of critically evaluating the information you find online, especially since 72% of respondents are passively exposed to financial advice through their social media feeds.
For example, users should be wary of misleading claims such as “100% winning strategies” or clickbait headlines designed to lure you into risky investments.
“It’s encouraging to see more individuals taking charge of their money, but it’s critical to ensure the reliability and accuracy of the information they rely on. At MoneySmart, through our Marketplace We do more than just connect consumers with personal financial products.
We use resources like our blog and qualified insurance experts to help people make sound financial decisions, including investing, saving, budgeting, choosing the right credit card or loan, and choosing insurance. We’re committed to providing well-researched advice and practical guidance to help you make better decisions. plan. “
Abel Lee, General Manager of MoneySmart Singapore and Hong Kong, said:
Featured image credit: Edited from freepic
