TikTok’s financial tags have become the go-to for financial advice and side hustle tips. But will brands be able to jump through the red tape to compete with creators? On The Drum’s financial and utility focus, Redpill’s Lija Rahman says…maybe.
#FinTok is the core tag of TikTok’s huge and growing community of financial creators, engaging millions of users and garnering over 500 million views.
Gen Z clearly wants financial literacy. This presents a huge opportunity for financial brands looking to reach the next generation of customers, but how can they effectively (and responsibly) engage with TikTok?
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#Rise of Fintok
While previous risk-averse generations focused on saving, Gen Zers are more willing to let their money work for them. You may have seen videos about building “side hustles” or additional “streams of income.” Examples include investing in a house, Bitcoin, and becoming an Amazon affiliate. Some viewers are even considering replacing their 9-to-5 income entirely with these non-traditional options.
Overall, Gen Z seems to be increasingly refusing to become another generational cog in the bureaucratic system. Rather, they seek to disrupt the status quo through innovation and creativity.
But #FinTok is more than just a side hustle. Many of the creators there have a background in finance or have experience making money with money. These creators often focus on improving financial literacy, and many of them don’t sell products, but instead teach people how to manage their current household finances, how to decide if a financial product is right for them, and how to understand their financial goals. We will advise you on how to achieve this.
This has helped transform educational financial content from boring and difficult to engage with to bite-sized, engaging, and fun videos that appeal to Gen Z.
But for financial brands, jumping on the #Fintok bandwagon requires more than just posting advice. There are strict rules and guidelines to follow, not to mention the challenge of standing out among a sea of creators, from Nischa to Dave Ramsey.
Get it wrong and your financial brand risks looking hopeless. Financial advice online can come across as a scam, and Gen Z is skeptical of brands that push hard sales.
play by the rules
Marketing on TikTok, especially in the financial sector, comes with a new set of rules. Before considering the legal implications of providing financial advice online, credibility is key. Gen Z can spot fraud from a mile away, and on a platform where unfiltered, relevant content thrives, traditional, sophisticated advertising is unlikely to work.
If a brand wants to join FinTok, they need to embrace the platform’s true culture. That means loosening the reins of formal corporate language and choosing a more conversational and engaging tone. To stay compliant, avoid big claims or “clickbait” lines, offer general advice, focus on key criteria, and always include a warning at the end. For example, you could consider setting up your own limited company or pooling all your pension pots.
To avoid being seen as a scam, it’s important to have a lot of support and transparency beyond what you post on TikTok. An up-to-date website, links to official websites, and other social media posts go a long way in showing that you are a legitimate business.
Utilization of Finfluencer
Financial influencers have already established trust and credibility with their audience. They often talk about how to maximize your finances, which is not taught anywhere else. This resonates with multiple generations on social media. Partnering with a finfluencer can be a great opportunity to access a hungry audience. Their platform allows you to demo products, do consulting, conduct interviews, and more.
Of course, cooperation with finfluencers is not without risks. Not all influencers strive for the same level of rigor when it comes to accuracy and compliance with financial regulations. Financial companies should conduct thorough due diligence and ensure that influencers both online and offline support the company’s values. We’ve seen many content creators rise quickly before plummeting due to inadvertence.
So, is FinTok a Gen Z treasure trove or a desperate effort by financial brands in search of relevance?
To be sure, FinTok is full of opportunities, but they may not be as big as financial brands think.
FinTok content creation can be particularly effective for financial planners and accountants who provide relevant advice and information to entrepreneurs, for example. But Gen Z is savvy enough to be unimpressed by big financial brands that promote inauthentic content.
Rather, the biggest opportunity for these brands lies in their partnerships with finfluencers, which require a real focus on real endorsements and rigorous compliance checks.
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