Paper short abstract:

This research explores the contradiction on why the unregistered finfluencers despite not being regulated, have higher subscribers and followers as compared to registered and regulated entities /advisors. It endeavours to inform financial education and awareness while protecting consumer interest.

Paper long abstract:

India has seen a boom in the popularity of finfluencers since 2020, this has been augmented by multiple socio technical realities including-

-Digital India program and multi-fold access to information

-Uncertainties and lack of financial security magnified by crisis’s like covid-19

-A burgeoning middle class that is young, aspirational and consumption driven and is inclined to make their money work as hard as they do

-Trading being democratised by new-age broking firms easy-to-use apps

In a country that has a financial literacy of 27% (NCEF,2019) finfluencers can play a significant role in creating interest around personal finance. However, the credibility of investment advice remains an area of contention. Kakhbod et al. (2023) in their study based on twitter feeds from USA point out that “antiskilled finfluencers have more followers and more influence on retail trading than skilled finfluencers”. India has witnessed similar trends, where non-regulated influencers have greater following than the recognised and regulated entities/advisors (Anupam & Anupam, 2023). This becomes especially significant in light of SEBI’s consultation paper on finfluencers (2023), which mandates strict restrictions on collaborations between regulated entities and unregistered finfluencers.

The current research, based on netnography and in-depth customer interviews, aims to explore the contradiction on why the unregistered finfluencers despite not being regulated, have higher subscribers and followers as compared to regulated entities/advisors. It endeavours to inform effective engagement for financial education and awareness while protecting consumer interest, learning from financial advisers and finfluencers, with the hope of informing policy.