The Rise of Finfluencers in the Pandemic, Marketing & Advertising News, ET BrandEquity

Image for representation purposes (Source: iStock)

The Covid19 pandemic has seen significant growth in the fintech sector, with payments and investments becoming increasingly digitalised. Many startups have turned this crisis into a wave of opportunity and the traditional marketing cookbook has become less relevant and useful compared to modern marketing through social media, commonly referred to as influencer marketing. People were now stuck at home with electronic devices. This was the greatest leverage used by these companies.

Now, their favorite Instagram influencer was also suggesting using secure apps for crypto investments. Financially confused followers could now count on jargon-free lessons to help them be wise with their money. Brands have competed to conquer the market through the content industry. Need groceries? There is an app. Need medical assistance? There is an app. Need help finding a job online? There is an app. Need to invest your money? There is an app.

Financial education through social media is becoming easier and more relevant. You no longer need a finance degree to save your taxes or invest in equity, or even trade. How’s it going ?

Cut the jargon

This line – “Wall Street likes to use confusing terms to make you think only them can do what they do” from the movie The Big Short, sums up why it’s important to cut out the jargon for a layman who has just realized that his FD aren’t enough to fight inflation. Bonds, derivatives, shorting, stop loss, expense ratio, etc. – these terms no longer make the common man feel stupid.

Way of life

With a gradual change in society, people have become more aware of their money. The 2008 crash was a lesson everyone learned. Investing is no longer a nerd thing. It is now cool to invest your hard earned money. Young people actively participate in their monetary goals. Gone are the days when the head of the family, usually dads, managed the money in DF. The daughter and her mother can now draw inspiration from financial influencers. The boundaries of age and gender have been broken down and this phenomenal change has always been a joy to watch.

The psychological change of the pandemic

The pandemic has taught us two very important things: the first is the need for a healthy lifestyle, the second is to be careful with your money. With jobs migrating to work from home and high unemployment rates, we’ve all realized how important it is to have a backup plan – multiple sources of income, or investing your money in assets, or reduce the extravagant lifestyle. The famous Fight Club line rightly says, “We buy things we don’t need with money we don’t need to impress people we don’t like.” It took us a pandemic, a nearly lost job, or an uncertain work life to realize how important it is to do the right things with our money.

Education

Education systems around the world teach everything except how to manage money. But that is changing thanks to online education. Whether it’s certificate courses, YouTube videos, or social media, people learn quickly. You no longer need to call your CA to understand basic investing. A fashion design or liberal arts student can now understand what an IPO means. There is an online solution for everything.

The content economy teaches people about NFTs and unicorns, not schools. The relatability has increased with financial influencers like Sharan Hegde, Anushka Rathod, Jay Kapoor who are just normal people speaking full language. Jargons or rich finance daddies can no longer make you feel like an outsider with their terminologies.

It is fair to say that the era is now one of finance and technology. We knew AI would make our lives easier, but we hardly saw the finance+AI wave take shape. Who would have thought that we would have millions of dollars invested in digital assets! But we now know the risks and rewards of real estate versus NFT versus digital gold, etc.

Influencer marketing with brands to keep audiences relevant and smart is the present and the future. I am convinced that this rebranding will only bring social welfare through free markets!

The author is the founder of Finnet Media. The opinions expressed are personal.