How Social Media ‘Finfluencers’ Wedge Between Banks and Gen Z Customers

Gen Z’s eagerness to turn to self-appointed “finfluencers” on Snapchat, TikTok, Instagram, YouTube, and other social media puts mainstream financial institutions and lenders in an entirely new game that they are ill-prepared to win. Finfluencers combine the power of personality, captivating video capabilities, and viral sharing to powerfully command attention as they cover an expansive range of personal finance and lending topics, compare and recommend products, and even shame financial institutions and products that don’t measure up to their expectations. Some finfluencers—including a generalist, the Financial Feminist, a car-buying buff, a real estate specialist, and a credit-building coach profiled in this report—engage millions of followers on multiple social media platforms and hold great sway over Gen Z and other young consumers. In contrast, the largest FIs have only a fraction of social media followers, if they engage in this arena at all. Nonetheless, Fis have an advantage finfluencers can’t match: the ability to go beyond do-it-yourself content by providing “help me do it” digital engagement.

Key questions discussed in this report: 

• How readily do Gen Z consumers turn to social media for financial information and advice? 
• What is a finfluencer, and what makes the best of them successful? 
• How do finfluencers threaten traditional banks, credit unions, lenders, and financial institutions? 
• What are some real examples of finfluencers, and how do they hold sway over followers' credit and lending decisions? 
• How can digital banking strategists win where influencers cannot?

Companies Mentioned: 

Allstate, American Express, Bank of America, Chase Bank, Citibank, Facebook, Instagram, Karat, Moomoo, NFM Lending, Santander, Snapchat, SoFi, TD Bank, TikTok, US Bank, Wells Fargo, YouTube, Zelle, @shondamartin_, @fmsmith319, @seth.godwin, @herfirst100K, @humphreytalks