Adviser Ratings has argued that it’s time for more advisers to utilise the technology available to them for digital engagement as a disconnect grows between finfluencers and professionals.
Finfluencers have been a hot topic in recent years, particularly after several faced legal action, and while they are undoubtedly harmful for consumers and to the public perception of financial advisers, Adviser Ratings suggested that there is something to be learnt from how they are able to build their reach.
Part of the reason finfluencers can be so successful is because they have learnt how to use social media to reach people, spark interest by explaining in relatively simple terms how they can “fix” financial problems, and build a sense of trust.
Even though these people often have no real qualifications in finance, many still manage to gain large followings online, for better or worse.
This ability to attract and engage with people online is something Adviser Ratings suggested is extremely valuable for advisers who want to be successful because younger people now are generally more trusting of those with an authentic online presence as this helps them decide if they like someone and want to work with them.
In particular, the firm found that 70 per cent of Gen Z “favoured businesses they perceived as ethical and authentic”, noting that advisers struggle to communicate beyond pure technical and product knowledge.
“It’s crucial for advisers to bridge this gap and communicate in a way that feels genuine and authentic to their audience,” Adviser Ratings said.
Using a recent case study, the firm said an adviser reportedly missed out on a $15 million client because when the client’s children looked up the adviser there were no reviews, no digital presence, and thus no “credibility signals”, and as a result of this they decided to go with a different adviser.
Although this may feel like something that doesn’t occur often, Adviser Ratings said: “The next generation isn’t just inheriting wealth – they’re actively influencing adviser selection based on digital credibility and relevance.”
The firm added: “Digital visibility is now non-negotiable.”
With this in mind, advisers that can evolve and adopt finfluencer communication strategies – while still remaining within the legal and regulatory frameworks – have a greater chance of success.
One key aspect of this, according to the firm, is advisers need to get better at showcasing what they actually do by moving away from saying things like “comprehensive financial planning” and instead consider “retirement income optimisation”, highlighting what they can help prospective clients with.
“Success in FY25–26 will require advisers to bridge the engagement gap without compromising professional standards,” Adviser Ratings said.
“This means developing communication strategies that feel authentic and accessible while maintaining the substantive expertise and consumer protections that differentiate professional advice from social media content.”
