CREDIBILITY OF FINANCIAL INFLUENCERS AND ITS IMPACT ON GENERATION Z INVESTORS' BEHAVIORS AND DECISIONS

Abstract

This study investigates the credibility of financial influencers (finfluencers) and their impact on Generation Z investors' behaviors and decisions in the Delhi NCR region. With social media becoming a dominant source of financial literacy, the role of finfluencers in shaping investment attitudes has gained unprecedented relevance. This research aims to critically assess how Gen Z perceives finfluencer credibility, how it influences their investment choices, and how this emerging trend compares with traditional financial advisory practices. The study highlights the transformation of investment behavior from family-advised, risk-averse decisions to social media-driven, trend-sensitive investment patterns among young investors. Factors such as social proof, FOMO (Fear of Missing Out), and parasocial relationships play a critical role in how Gen Z evaluates and trusts finfluencers. However, the unregulated nature of finfluencing creates a paradox: while financial content is more accessible, it is also potentially more misleading. Using a quantitative research approach, data was collected through an online survey of 156 participants aged 18–35. The analysis applied T-tests, Chi-Square tests, and Pearson correlation to test key hypotheses: ● Finfluencers significantly influence the investment decisions of young investors. ● There is a strong association between past investments influenced by finfluencers and the willingness to continue following them. ● Time spent consuming financial content moderately correlates with the level of influence felt by the users. Findings indicate that YouTube and Instagram are the most preferred platforms for financial content, with educational content being more trusted than purely motivational material. The study also found that perceived credibility factors—such iv as follower count, visual appeal, and brand collaborations—strongly impact trust, often more than professional certifications. Despite the democratization of financial education, risks of misinformation, lack of risk disclosures, and promotional biases were highlighted. The study recommends that young investors practice critical evaluation of financial content, finfluencers maintain transparency and ethical practices, and regulatory bodies like SEBI formulate guidelines to monitor and certify financial influencers. This research contributes to the growing literature on digital finance and youth behavior, offering practical insights for investors, educators, policymakers, and content creators. It stresses the urgent need for balanced consumption, responsible content creation, and prudent governance to foster a safer financial ecosystem for future generations.