Young people are turning to TikTok-based influencers for advice on how to manage their finances and where to bank
More than a quarter of 18 to 24-year-olds in the UK say TikTok influencers give better financial advice than their financial services provider.
According to a survey of 1,000 young adults commissioned by Pay.UK, which runs the Current Account Switch Service (CASS), 58% of the age group, known as Generation Z, are following TikTok influencers who give financial advice.
About a quarter (26%) of these said the TikTok influencers give better advice than their finance provider, 40% said they trusted the advice more than that from the media, and 34% said it was better than recommendations from family and friends.
Of those surveyed, 46% said TikTok influencers have helped them make decisions around investing in stocks and shares, ISAs, or choosing a mortgage.
Jo Ainsley, senior service lines manager at Pay.UK, said: “It is encouraging to see from our research that 18 to 24-year-olds are interested in money management and are actively browsing social media for advice on money matters.
“Everyone needs to be on top of their finances. A key issue is ensuring your current account is best suited to your needs.
“Through the Current Account Switch Service, everyone benefits from a service that is free and easy to use, and the move from one account provider to another is completed in seven days and is backed by a guarantee. This makes switching easy and means people could be benefiting from improved online banking services that help them track their spending better.”
CASS was launched in 2013 to enable a seven-day account switch, rather than the 30 days it used to take. The UK government was eager to stimulate competition in the retail banking sector after the financial crisis that began in 2008.
Vocalink built the service’s IT platform, with CGI overseeing the two-year project, which cost £750m
Figures from Pay.UK released in January revealed that digital banks are beginning to eat into the market dominance of traditional banks.
In the final quarter of last year, CASS recorded almost 250,000 account switches, which was 60,000 more than in the same period the previous year and 36,000 more than the previous month.
The latest figures from Pay.UK showed that 32% of 18 to 24-year-olds surveyed said TikTok influencers had made them aware of bank account switching offers and even made them consider switching to a different provider.