Finfluencers and Retail Investment Behaviour: Credibility, Cognitive Bias, and Regulatory Implications

The proliferation of financial influencers—commonly termed finfluencers—on social media platforms has created a new paradigm in how retail investors access, evaluate, and act upon financial information. Drawing on a structured survey of 51 active retail investors in an emerging-market context, this study examines the mechanisms through which finfluencer content shapes individual investment decisions, with particular attention to perceived credibility, parasocial trust, cognitive-bias activation (fear of missing out, herding, overconfidence, and anchoring), and the moderating role of financial literacy. Anchored in Behavioral Finance Theory (Kahneman & Tversky, 1979) and Kelman's (1958) Social Influence framework, the findings reveal that finfluencer exposure significantly amplifies cognitive biases and increases trading frequency, even among respondents with advanced academic qualifications. Notably, 64.2% of participants favor mandatory professional certification for financial influencers, signaling public readiness for tighter oversight. The study contributes empirical evidence to an underexplored intersection of digital communication and retail finance in developing economies, and offers actionable implications for regulators, financial institutions, and platform designers.