A new survey has found how social media has transformed the way we seek financial advice.
For anyone seeking investment advice in Cheshire or Oswestry, the findings may prompt a rethink on how people use social media platforms and who you turn to for financial expertise.
TSB polled nearly 20,000 adults all over the UK. The study focused on attitudes towards financial advice online. It revealed that nearly 60% of respondents regretted decisions made using social media as a source, because they had later lost out financially as a result. On average, these respondents lost nearly £700 each.
Others expressed concerns about the role of artificial intelligence. Over 25% of all respondents said they had turned to AI as a personal finance tool. Of these, younger people were the biggest group, with 43% of those aged 25 to 34 saying they used AI. Just over half felt they still lacked the confidence to determine which content was reliable and which was AI-generated. The generation gap was laid bare, with barely a fifth of older age groups relying on these sources for financial tips, compared to 49% of the 25 to 34 group, particularly in relation to savings and investments.
With around 46% of those questioned feeling unable to check the credentials of online investment advice sources, there is also the heightened prospect of scams, security risks, and investment frauds. In some situations, victims in the survey lost as much as £3,000.
Overall, the study found that social media and AI are becoming more significant in shaping our attitudes towards financial decision making, with information becoming more accessible than ever. However, greater vigilance is needed when assessing the veracity and impartiality of financial information sourced online.
