While most ‘finfluencers’ have good intentions - others are promoting misleading financial activity and even targeting investors with scams. “It’s a huge spectrum,” explains Clare Francis, Savings and Investments Director at Barclays. “You could be getting financial guidance from somebody you watch on TikTok or Instagram, and they may or may not be an expert in what they’re talking about”.

Yet, Francis explains that relying on ‘finfluencer’ content when investing can come with its risks. Particularly when, according to Barclays’ research, only 49% of Brits do regular checks of ‘finfluencers’ who promote investment guidance on social media. By not doing any simple checks, consumers may end up making investment decisions that aren’t suitable for their situation, or even end up falling for a scam and losing money. Francis says that “this could potentially put someone off investing for life”.

The rise of ‘finfluencer’ content highlights a growing need for reliable investment support. Barclays’ consumer research shows that a quarter of people in the UK don’t know how or where to start investing. This is driven by the so-called ‘advice gap’ between consumer demand for investment advice and the number who can currently afford it – with regulation currently limiting how banks can support potential investors without crossing the boundary between guidance and personalised advice. As a result, it seems that consumers are more likely to turn to ‘finfluencers’ to fill this gap with “free” investment support.

Barclays believes that collective action is also needed from industry, government and regulators to plug the advice gap and reduce investment fraud. Specifically, Francis says that changes to regulation that allows banks to provide more personalised investment guidance could help. “As a bank, we need to be able to work with government, regulators and industry to provide greater support for would-be investors”.

This is something that is being looked at and recently, Barclays set out five public policy changes to help close the UK’s investment gap and empower more savers to engage with investing. This included changes to regulation that allows banks and financial providers to support customers with investment recommendations on a “people like you basis” as well as the creation of an FCA-accredited badge to help entry-level investors to find suitable products.

Barclays provides extensive support to educate and protect customers from financial misinformation online. The bank’s Scams Bulletin provides the latest scam data across all personal and business current accounts to monitor the latest online trends and draws on commentary from Barclays experts to keep customers safe.

Ultimately, Francis says that it is essential to always consider the ‘finfluencer’ content being viewed. “Consumers should always do their own research on any ‘finfluencer’ investment recommendations and make sure to double-check their claims against regulated investment platforms. It doesn’t need to take long as there are some easy ways to check for potential red flags,” she says.