Young people want more guidance from financial services providers

13 January 2025

Financial services providers are being called upon to regain their influence over young people’s financial education, after a new report revealed that 90% of 18-30 year olds want more guidance when it comes to managing their money.

The Young Money report by MRM, revealed that 63% of young people in the UK expect their standard of living to increase in the next 12 months and almost half (47%) believe their financial services providers should be responsible for providing them with sound financial guidance and education.

This was ranked more important than their own belief in personal responsibility (36%) and seeking guidance from families (41%).

The findings of the report showed that social media was by far the most popular destination for young people to seek financial information, with 45% of respondents citing it. A third (33%) also highlighted direct communications from their financial services providers, either by email or in-app messages. More traditional media outlets such as newspapers (24%) and television (23%) were less popular.

MRM said the rise of ‘finfluencers’ online was partly driving the popularity of social media, with six in 10 (59%) respondents saying they follow finfluencers, growing to nearly three quarters (74%) among young Londoners. Only 3% of respondents said they did not trust finfluencer information, compared to an overwhelming 77% who do. One in six (14%) said they would take financial action based purely on what they had seen from an influencer online.

Chris Tuite, director and head of consumer finance at MRM, said: “The message delivered by young people in the UK couldn’t be clearer. They want financial services firms to step up and regain their finfluence. They say they need real, reliable financial guidance, and they expect financial services firms to provide it.

“While many social media influencers offer some helpful tips, others are spreading unverified and, in some cases, harmful financial advice. The Financial Conduct Authority cracked down on rogue finfluencers in October 2024, but that is just the beginning. Young people need trusted sources of information to help them build stronger financial foundations and stop certain unregulated influencers filling the void with potentially dangerous and misleading advice.”

Tuite said the advice industry has an opportunity to provide young people with the guidance they want.

Tuite added: “Our data shows these firms are largely present on social channels but are not able to garner the same attention as this new breed of finfluencers. They need to start creating the kind of social content that will deliver, and crucially, focus on guidance more than gamification or instant gratification.”

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