INTHEBLACK November 2026 - Magazine - Page 47
FINFLUENCING’S
EDUCATIONAL ROLE
Regulatory breaches
aside, some commentators
argue that finfluencers have
a legitimate role to play in
educating and inspiring people to
budget better, invest wisely and participate
in financial markets.
Dr Akshaya Kamalnath, an associate
professor at Australian National University
Law School, argues that regulation should
address the darker side of finfluencing
without stifling its potential benefits.
Social media can engage audiences in
ways that traditional financial advice
often cannot, she says. “It is more along
the lines of, ‘This is fun and interesting,
I am watching it’. The next step is,
‘OK, let me also do this’.”
Her research shows that finfluencing
has had distinct effects in South Korea
and India. In South Korea, it has helped
mobilise a mature retail-investor base into
shareholder activism and corporate governance.
In India, it has primarily expanded financial
education and inclusion, particularly through
local-language content, although concerns
remain about political influence.
Kamalnath also believes finfluencers can
help overcome issues that have historically
limited the influence of retail investors.
By bringing people together around
particular companies or investment ideas,
they can encourage individuals to become
shareholders for the first time, contributing
to financial inclusion and education. In this
sense, she contends that finfluencers are
“democratising capital markets” and
“reclaiming capitalism”.
While older generations may be sceptical
about taking financial advice from social media,
Kamalnath says younger people approach
it differently as “they are digital natives”.
Cher agrees
that finfluencers
can have a legitimate
social benefit in making
financial education
accessible, engaging and free.
Traditional financial advice can
be expensive and intimidating, particularly
for younger people or those with relatively
small amounts to invest. She says responsible
finfluencers can explain financial concepts
in accessible language and encourage people
to take greater control of their futures.
“It is actually the non-finance people who can
make learning about finance easier,” Cher says.
GETTING THE BALANCE RIGHT
The challenge lies in striking the right balance
between consumer protection, financial literacy
and continued innovation.
In assessing the risks of following
financial influencers, ASIC itself notes
that they can provide factual and useful
information, provided they do not cross
the line into recommendations or misleading
representations. “We do acknowledge that
it can sometimes be challenging for people
to obtain financial advice,” Kirkland says.
One way that ASIC seeks to “step into
the gap” between finfluencers and licensed
financial advisers is through the provision
of trusted information through Moneysmart.
The regulator is also ramping up its own social
media presence. “We are increasingly engaging
in short video content on platforms such as
Instagram about common money topics in
order to make sure people have got access
to information they can trust.”
Phil Anderson, general manager of policy
advocacy and standards at Financial Advice
Association Australia (FAAA), says there
is clearly a place for the dissemination
of financial information by commentators
on social media.
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