FINANCIAL BEHAVIOURS IN THE SOCIAL MEDIA ERA: A SECONADARY STUDY ON INFLUNENCER MARKETING

The rise of financial influencers, or "influencer’s," has fundamentally transformed financial communication and investment behavior, particularly among Gen Z and Millennial. This secondary study synthesizes research from behavioral finance, psychology, law, and marketing to analyses this new paradigm. Finfluencers' persuasive power stems from emotional and social-psychological mechanisms, such as cultivating Para social relationships and leveraging community validation. These interactions amplify inherent cognitive biases like herding, anchoring, and the fear of missing out (FOMO), often leading to impulsive and speculative financial decisions. While finfluencers can democratize access to financial knowledge and build supportive communities, their unregulated status poses significant risks. This includes contributing to market volatility, spreading misinformation, and causing financial harm to inexperienced investors. The analysis reveals that existing legal and regulatory frameworks, designed for traditional financial advice, are ill-equipped to address the subtle nature of social-media-driven influence. The conclusion is that the Finfluencers phenomenon is a complex, technologically-mediated ecosystem that challenges the very foundation of financial market theory. Addressing these challenges requires a multi-faceted approach, including updating regulations to account for psychological manipulation, enhancing consumer education, and establishing new ethical standards for digital financial services to protect individual autonomy and financial well-being.