Finfluencer: can financial social media influencers promote desirable financial behaviours?

Purpose This study explores the effectiveness of financial influencers (finfluencers) in promoting favourable financial behaviours. Guided by the elaboration likelihood model (ELM) and the customer inspiration theory, it investigates how individuals may be inspired by finfluencers’ characteristics and subsequently adopt their own financial practices. This research also examines the roles of financial stress, financial security and parasocial relationships (i.e. one-sided relationships where followers feel personally connected to finfluencers) in shaping the financial behaviours of finfluencers’ followers. Design/methodology/approach The hypotheses are assessed using data collected from 227 Millennial and Gen Z individuals in Malaysia. The data are analysed using the partial least squares structural equation modelling. Findings The results indicate that source characteristics (trustworthiness and similarity) and argument quality of the finfluencer message (accuracy and value-adding information) are positively associated with the parasocial relationship between finfluencers and followers. Parasocial relationship is found to function as a mediating variable for the association between trustworthiness, accuracy, information value-adding and being “inspired by” finfluencers. Being “inspired by” finfluencers is positively associated with how followers are being “inspired to” adopt finfluencers’ exemplars, financial security and financial stress, which are, in turn, associated with their intention to invest. Research limitations/implications The findings extend current theory in bank marketing using a finfluencer and offer practical implications underscoring the potential of finfluencer marketing as a strategic avenue for bank and financial marketers, offering valuable insights for financial institutions to leverage the persuasive power of finfluencers in promoting positive financial behaviours amongst individuals. Originality/value This study is amongst the first to integrate the ELM with the customer inspiration theory to explore how finfluencers and the parasocial relationship between finfluencer and young consumers influence followers’ attitudes, financial well-being and investment behaviours.