Consumer Trust in Financial Advice from Social Media

This report presents findings from a comprehensive U.S. consumer research study conducted by FIS, examining the evolving relationship between younger generations and traditional financial institutions. The study reveals that social media has emerged as the primary source of financial advice for younger consumers, with significant percentages of Gen Z and Millennials relying on these platforms over traditional banks. This shift has led to increased financial anxiety, as fragmented advice on social media can promote unrealistic comparisons and feelings of inadequacy. The report highlights that many younger consumers are keeping their funds in checking accounts and digital wallets, which may limit their financial growth opportunities. Additionally, the research indicates that while loyalty to financial institutions remains strong, younger consumers are more willing to switch banks for better offers. The findings underscore the need for banks to adapt their services to meet the expectations of tech-savvy consumers and bridge the generational trust gap.