As a South African marketer in the financial space, I can attest to the growing trend of young people turning to social media for financial advice. TikTok, in particular, has become a go-to platform for not just entertainment, but also for information and advice.
One of the main reasons for this shift is the decline in trust in traditional financial advisors and institutional investors. Many retail investors have grown frustrated with poor performance from traditional funds and the conflicts of interest that often come with financial advisors directing them to specific funds. Additionally, millennials and Gen-Z are facing a harsh economic environment, with traditional avenues to financial freedom closing. They must be more active in managing their finances, leading them to seek advice from sources outside of traditional gatekeepers.
Research suggests that TikTok has become an increasingly popular platform for South African youth to acquire financial advice. A recent survey conducted by the investment firm TIAA found that a third of people seek financial advice from social media platforms, including TikTok, before making financial decisions. This trend is particularly pronounced among younger demographics, who are more likely to use social media to learn about financial matters. South African youth are turning to TikTok to gain insights into personal finance, investing, and money management. They are able to access a wealth of content on the platform, including informative videos, tutorials, and personal anecdotes from influencers and experts. The collective wisdom of the TikTok community offers a diverse range of perspectives and experiences, providing valuable guidance to young South Africans looking to build their financial literacy and make informed decisions about their money.
As a marketer in the South African financial space, it's important to recognize the growing trend of young people seeking financial advice from social media platforms like TikTok. While traditional gatekeepers still have a role to play, it's essential to adapt to this new reality and provide value to this new audience on their preferred platforms.