TikTok is a lot more than just a video platform. It’s a search engine, an atlas, a shopping mall, and, increasingly, a financial planner. According to a new survey, 34% of Gen Z respondents turn to TikTok for financial advice. A similar percentage (33%) get money tips from YouTube. By comparison, only 24% of zoomers entrust their income to traditional financial planners.
Those numbers come from a study conducted by Vericast. The marketing solutions company surveyed 1,000 adults, most of whom are between the ages of 18 and 77. Unsurprisingly, the youngest section of that sample was most likely to get advice from the entity known as “FinTok.” Overall, half of the respondents said they get financial advice from friends or family members, and less than a third of them claimed to rely on banks, credit unions, or financial advisors.
Though Gen Z is going to TikTok for help managing their monetary interests, that doesn’t mean they’re avoiding financial advisors altogether. In fact, some of the top personalities in the FinTok scene, such as Erika Kullberg, work in finance themselves. And VC firms like BlackRock are getting in on the short-form video trend as well.
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Vericast believes that trend can become even more pronounced. Based on the results of its survey, the company is recommending that more financial institutions redirect resources to TikTok. “It is clear that financial institutions have a critical need to innovate quickly and reimagine their approach to retain customers,” said Stephenie Williams, VP of Financial Institution Marketing Product and Strategy at Vericast. “Banks and credit unions need to meet customers where they are, not only positioning themselves as a go-to, trusted resource providing education through traditional strategies, but also using new channels and platforms to reach younger generations.”
But as those younger generations age, will they still rely on the same sources of financial advice? Vericast’s survey shows that only 13% of Millennials, 6% of Gen X, and 1% of Baby Boomers head to TikTok for money matters. Eventually, Gen Z consumers will enter into those age brackets and will (theoretically) have more complex financial needs. When that happens, will they stick with TikTok or resort to more traditional advisors? Vericast will have to repeat this study a few years down the line in order to resolve these questions.