Influencers are ubiquitous on social media. Having long entered finance, they're gaining market share with people banks can’t access. Swiss finfluencer Fabio Marchesin told finews.com what banks can learn from his interaction with his followers and why he stands out from competitors.
Influencers walk a fine line between accepting advertising and sponsorship money while maintaining authenticity with their followers. Kim Kardashian learned this the hard way last month when she was fined for not disclosing she was paid to advertise a crypto token on her social media account.
A recent public opinion survey by a German research institute found that hipsters giving financial advice on social media, so-called «finfluencers,» to their many followers are becoming more important for the financial industry. Yet the public has little trust in them partly because they lack financial expertise.
Lack of know-how is one thing that Fabio Marchesin, aka FinanzFabio, can't be accused of. While his qualification as a Swiss financial planner officially authorized to give investment advice might not put all potential conflicts of interest to bed, as a finfluencer it makes him stand out among the crowd.
Personal Portfolio
Marchesin doesn’t give investment recommendations on social media, but he is open about his personal investment strategy, which consists of investing 3,000 Swiss francs per month into the same ETF and buying 300 francs worth of bitcoin weekly.
Then there are his snappy online modules, starting at under 100 francs, on how to read one's pension statement or fill out the annual tax declaration, to more comprehensive packages on retirement investing.
These courses attract all age groups with women particularly interested in the approximately 1,000 francs comprehensive package, enabling them to get hands-on with their finances, he said.
Monetizing Education
For Marchesin, receiving financial education from a professional makes sense as soon as you earn your own money. Finfluencers have an advantage over banks in reaching those making their first foray into learning about personal finance.
«Banks are missing a huge opportunity by not offering financial education and only trying to sell products,» he said, acknowledging the problem that as soon as banks start trying to educate their clients, «the customers realize that they also want to sell products and then leave.»
No Frills
Marchesin is keen to point out he is not paid for sharing his investment behavior with his 12,300 followers across Instagram, TikTok, and LinkedIn, or his podcast and newsletter subscribers.
Although he doesn't actively promote any financial products to his followers, Marchesin will sometimes criticize products and services, where the fees are too high or the services are insufficient. And he is sure to add no frills when he does so, something that distinguishes him from your regular bank advisor.
«If I find something a pile of sh*t I’m not afraid to say so,» he said, adding that this is something his followers appreciate.
HENRYs
While Marchesin’s social media followers are likely to fall into a wider wealth bracket, clients who come to him to create a budget or plan their retirement are generally so-called «high-earners-not rich yet» (HENRY), with an annual income starting at 100,000 francs a year.
«At the bank, it's your assets that matter more than your income,» he said, explaining why banks don't make the effort to address the educational needs of HENRYs. As a result, he has been particularly successful at getting this group's attention.
And listening to Marchesin, it's a crowd that is open to advice and willing to learn, but «unfortunately, to date, no bank has approached me to say they want to partner on a course on financial education,» he said.
