Finance Influencers: A Literature Review

Abstract

Purpose: The purpose of this review is to explore and synthesize existing academic and industry literature on the emergence and influence of financial influencers— commonly known as “finfluencers”—on social media. It aims to examine their impact on individual investing behaviour, information dissemination, market dynamics, and broader financial literacy, particularly among Gen-Z and younger investors.

Design/Methodology/Approach: This paper uses a qualitative review methodology, analysing recent scholarly research. It categorizes key themes related to social media as a channel for financial advice, the role of trust and credibility in influencer content, behavioural drivers such as fear-of-missing-out and herding and examines the regulatory and ethical implications of finfluencer activity.

Findings: Evidence suggests that finfluencers act as influential intermediaries for younger investors, promoting financial participation and literacy. However, their influence is a double-edged sword—while they contribute to democratizing financial knowledge, they also introduce risks, including misinformation, undisclosed sponsorships, and speculative investment behaviours such as “pump-and-dump” schemes. The literature presents mixed views, with some studies praising the inclusivity and reach of finfluencers, while others document instances of poor investment outcomes and regulatory violations.

Originality: This review offers a timely synthesis of a rapidly evolving field, highlighting underexplored dimensions such as parasocial relationships, influencer credibility factors, and behavioural finance mechanisms. It identifies key research gaps, particularly in understanding long-term effects, cultural variability, and the effectiveness of regulatory oversight. The paper calls for future interdisciplinary research to ensure safe and transparent finfluencer engagement in the financial ecosystem.

Paper Type: Review of Literature