Financial influencers, often referred to as “Influencers,” have taken over social media and created an authentic ecosystem in which people follow them and their advice for various financial decisions. Therefore, influencers who guide their audience in terms of any form of funding fall under the category of Influencers.
Who are the financial influencers?
Financial influencers have a strong background in finance in terms of education and experience, because when we talk about finance, ordinary audience / followers expect more than just a degree and i.e. professional experience in one or other of the financial markets. It is thanks to these specialized skills in economics and finance that financial influencers have built a specific social media ecosystem.
While financial influencers hold key knowledge in banking, money management, cryptocurrency, stocks, economics, etc., there have also been instances where mega fintech brands such that HDFC or Dhani Loans have harnessed the potential and reach of non-financial influencers who connect better. with the public. While financial influencers have knowledge of finance, they also tackle day-to-day issues like how to manage your salary and expenses? This is where finance and other influencers become a mediator for effective and widespread communication that benefits brands more widely.
This fine line between lifestyle influencers and financial influencers is blurred, but in the long run, the general public relies on influencers who have in-depth knowledge of the subject or those who create sought-after content. These influencers keep track of the numbers, give important life advice related to daily advice for finance, stocks, markets, etc., and share necessary and crucial information with the public. With the sudden awareness of money management, financial influencers have been able to gain momentum in the social media industry and their advice is only appreciated if it has value added benefits. Therefore, we should also be aware that not everyone can be called a financial influencer who gives financial advice.
Some of the most popular influencers in the Indian market are Anushka Rathod, Ankur Warikoo, Sharan Hegde, etc. who have gained popularity due to their effective financial advice which has helped their followers in one way or another. Additionally, the unavailability of accessible financial information is what led to the growth of influencers who could explain finances in simple and easily understood terms. Therefore, it is thanks to the influx of financial influencers on Instagram that the general public has been able to access valuable financial information. It is important to note here that Instagram dominates other social media platforms in the niche as it has the presence of financial influencers on its platform. This is why other social media platforms like YouTube also get / access Instagram content in this area.
How do financial influencers benefit brands?
Everyone today is eager to learn and obtain information around the term “How to do it?” “. For example, how to log into online banking services; how to get easy loans, how to invest in stocks, etc. This question of how to do a certain thing is what interests the public and influencers who can provide easy solutions to these queries are most likely to benefit themselves, their community and the brands they support. .
Due to this growing popularity today, popular fintech brands like HDFC have adapted to influencer marketing as a key inclusion in their marketing plan. The reasons why the influencer marketing approach helps achieve desired results for the brand, are-
– The availability of a niche target audience that is interested in financial investments and topics related to finance. This means that the ROI and the reach are high.
– Financial influencers have in-depth knowledge of the subject and are therefore an authentic source of information for their followers.
– It is the experience of the financial influencer that adds value and weight to your marketing plan.
Rules for Finfluencer Marketing
Finances are a critical issue, and as a result, regulations on financial promotions and marketing are more stringent than other forms of marketing. When a financial institution decides to use influencers for its advertising campaigns, it must follow the rules and guidelines set out by the Federal Trade Commission (FTC) and the Financial Industry Regulatory Authority (FINRA).
According to the FTC, there must be transparency in terms of the link between the influencer and the brand. The simple idea is that there must be some specification that mentions that the post is a paid promotional post. This helps the audience to note that the influencer may differ from the brand’s ideology. Although in most cases influencers make a fair decision and only promote brands they trust.
In addition, under FINRA, influencers or individuals are now allowed to endorse a specific action or investment idea. As a result, the pool of financial marketing through influencers has now grown. While we have discussed financial influencers, we also need to remember that popular influencers can also work as financial influencers based on their personal experiences. Thus, brands can choose from a large pool of influencers and choose what suits them best.
The opinions expressed above are those of the author.
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