Is TikTok becoming young people’s new trusted source of financial advice?
18-24-year-olds are turning to the social media platform for financial information with money influencers becoming more influential than traditional media, their friends and family.
- Almost two-thirds (58%) of 18-24-year-olds follow TikTok influencers who talk about budgeting, money, or personal finance
- 4 in 10 (40%) think TikTok influencers give better advice than the media, (34%) than their friends, and (26%) then their financial provider
- Almost half (46%) say TikTok influencers have helped them make a financial decision, including investing in stocks and shares, ISAs, or helping them choose a mortgage
- The Current Account Switch Service is encouraging this financially savvy generation to ensure their current account best suits their need
- The retail payment authority is now working with influencers to highlight the potential benefits of switching your bank account.
TikTok could be becoming a preferred destination for Gen Z in search of financial advice, according to new research by the Current Account Switch Service. The survey reveals that two-thirds (58%) of 18-24-year-olds follow TikTok influencers who talk about budgeting, money, or personal finance.
A large proportion trust what they hear from TikTok influencers. Two in five (40%) say TikTok influencers give better advice than traditional media, 34% than their friends and 26% their financial provider.
When it comes to trust, Gen Z value influencers that provide relatable and engaging content, with 41% saying that they are more likely to trust influencers they find entertaining and 35% trusting influencers they find relatable. Furthermore, 38% of Gen Z say influencers are more likely to have earned their trust if they have made recommendations that have helped them in the past.
An additional 46% say TikTok influencers have helped them make a financial decision, including investing in stocks and shares, ISAS, or helping them choose a mortgage.
When it comes to switching current accounts, a third of Gen Z (32%) say that money influencers on TikTok have made them aware of a switching offer or even consider switching to a different provider who meets their needs. Like other generations, Gen Z look for attractive switching incentives and better service when contemplating switching.
The research found that the majority of Gen Z (54%), would consider switching if another current account provider offered a switching incentive, cashback on spending or deals on financial products like phone insurance. 17% would consider switching if another current account provider had better online/mobile banking facilities.
Rising inflation is at the top of 18-24-year-olds financial worries, with two thirds (67%) anxious about the living costs, followed by savings (51%) and budget management (43%).
It seems that over a third of Gen Z (37%) are now more likely to think about their finances than usual amidst changes to the economy.
Indeed, 64% of Gen Z are now seeking financial advice to increase their knowledge, 46% to help plan for the future, and 43% to understand inflation.
Now is a great time for Gen Z to check whether their current account suits their needs or if a different provider is offering a better product for them.
Jo Ainsley, Senior Service Lines Manager at Pay.UK, commented:
*The research was carried out by Mortar Research which conducted a survey among 1,000 18-24 respondents. The research was conducted in September 2022.
For further information, contact CASS@mhpc.com / 020 3128 8729.