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topicnews · September 30, 2024

Gen Z trusts finfluencers – and therefore invests better, according to the survey

Gen Z trusts finfluencers – and therefore invests better, according to the survey

Finfluencers are increasingly influencing the investment decisions of Gen Z and Gen Y.
Alvaro Gonzalez/Getty

  • A Bafin evaluation shows that 18 to 45 year olds are increasingly using social media for financial information, especially for crypto investments.
  • 60 percent of those surveyed see social media as a good alternative to traditional advice, with YouTube and Instagram being particularly popular.
  • Finfluencers play a central role, but are not required to disclose who pays them and how high their commissions are; 37 percent of young investors do not know that Finfluencers receive money for recommendations.

Are influencers currently the new financial advisor? This question is being investigated by an evaluation by the Federal Financial Supervisory Authority (Bafin). The survey shows a clear trend: adults between the ages of 18 and 45, including Gen Z and Gen Y, are increasingly looking for financial information on social networks. 1,000 people who had invested in the past two years were surveyed.

So-called finfluencers, who give financial tips on social media, play a central role in investing. YouTube and Instagram are particularly popular among those surveyed. More than half of Generation Y and Generation Z see social media as a reliable source for financial topics. 60 percent even see it as a good alternative to traditional advice.




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What is striking is that social media-savvy users have diversified more widely in the last two years, particularly in securities and crypto assets. They diversify more than those who do not get financial information through social media.

Social media usage is strongly related to crypto investments

However, there are clear differences between Generations Y and Z when it comes to preferred asset classes. Generation Y tends towards overnight and fixed-term deposits, while Gen Z is slightly ahead when it comes to crypto investments and precious metals.

Cryptocurrencies are represented in significantly more portfolios than in 2022: 32 percent of those surveyed have invested in cryptocurrencies in the past two years. The Bafin evaluation also shows that the use of social media is strongly linked to crypto investments: 43 percent of social media users invest in cryptos, compared to only 25 percent of non-users.

Investments from Gen Z and Gen Y

Investments from Gen Z and Gen Y
Bafin

Finfluencers do not have to disclose commission

Over 50 percent of those surveyed have received financial tips from finfluencers. Almost 90 percent of them understand that they primarily advise on stocks and crypto assets. The survey also shows a high completion rate for Finfluencer recommendations: 80 percent of those who look at investment tips note that the influencers often provide a link through which the investment can be completed directly.

However, finfluencers do not yet have to disclose who pays them and how high their commissions are. 37 percent of young investors do not know that Finfluencers regularly receive money for their recommendations.

Disclaimer: Stocks, real estate and other investments generally involve risk. A total loss of the capital invested cannot be ruled out. The articles, data and forecasts published are not a solicitation to buy or sell securities or rights. They also do not replace professional advice.

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