A lot of brands and marketers are using social media to reach out to their target audience. In the last 4-5 years, the financialinfluencers have been building up a strong follower base, and have seen an accelerated pace during the PAIN period, when people began to lay a greater emphasis on financial planning for the future.
New investors entering the market caused the popularity of finfluencers in India to increase. The surge was made possible by the development of user-friendly trading apps, along with the availability of inexpensive data plans and digital payment systems. Covid acted as a catalyst for the emergence and growth of financeinfluencers.
Several finfluencers have built loyal fan bases in the last few years, and have caught the attention of marketers.
There are some cautionary notes to be observed when it comes to financial investment and one's hard earned money.
The Securities and Exchange Board of India took action against a well-known influencer. Sundar was banned from trading for a year and fined for violating investment advisor rules by the Securities and Exchange Board of India.
A strong sense of caution is required in each one of us to make sure we do double checking, counter checking, and don't go as the finance minister said.
She said, "We are working with the IT Ministry and the Reserve Bank of India to crack down on Ponzi apps."
There is growth and caution.
The world of finfluencers is still seeing a growth curve. Adgully wants to explore the world of finfluencers, understand the factors contributing to the growth, how finfluencers are shaping the future of investment, and a lot more.
The growth of the finfluencer economy was pointed out by the CEO and secretary general of the association. They looked for reliable sources of information and advice to help them navigate the financial challenges brought on by the crisis and looked to non-traditional sources such as social media for financial guidance and education. The Pandemic made people more attentive to their finances, and finfluencers, with their insights and guidance, convinced consumers on how to manage money during those challenging times. The rise of the finfluencers could be traced back to Covid.
According to a study conducted by the company, social media is the primary source of information when it comes to investing. According to a report from Statista, the Indian influencer marketing industry had a valuation of over Rs 12 billion in 2022, with a projected compound annual growth rate of 25% over the next five years.
The industry will have a market value of Rs 28 billion by the year 26. About 55 million urban Indians were direct consumers of various types of influencer marketers.
There are growth factors.
Financial content has transformed into easily consumable formats. It was the appeal of bite-sized content that initially drove the popularity of social media. Younger generations don't like to go to long financial conferences or read long finance books. They prefer to access the same information through their phones.
Financial knowledge can be difficult for lay people to comprehend. High fees for financial guidance used to be an opportunity for qualified professionals. Money management and investing topics have become more popular in recent years. Finfluencers have been able to build engaged audiences by using real stories and personal experiences, which has made the problem of money less intimidating for Gen Z and younger audiences.
The growing entrepreneurial spirit of the young population is one of the factors that seems to have fueled this growth.
The financial sector has made great progress. There are many innovative, new, and complex financial instruments that can be used by both first-time and experienced investors. There is a need for financialinfluencers for consumers to get their advice. Financial commentators claim to have a wide knowledge base which includes information about the latest financial instruments, which has increased their appeal to consumers. They don't limit their content to one language alone and also produce content in regional languages which has added to their newfound popularity and reach.
She said that consumers who follow finfluencers rely on them to educate themselves about both new and existing financial products and services.
Finance experts have expertise in areas such as banking, money management, cryptocurrencies, and stocks. There have been instances where prominent fintech brands like Dhani Loans have been able to connect with their target audience thanks to the influence of non-finance experts. Finance experts address everyday concerns like salary management and expenses. Finance and non-finance people can serve as effective mediators for widespread communication that benefits brands.
The future of investment is being shaped by finfluencers.