From Likes to Liquidity: The Impact of Fin-Fluencers on Retail Investment Decisions

Social media platforms have become, in the last few years, powerful venues that shape financial understanding and investment behaviors of retail investors. One of the most significant changes brought about by the rise of fin-fluencers, a term used to describe one-person content creators who share financial advice, offer market insights, and narrate personal investment experiences, is the revolutionary way individuals now perceive, evaluate, and engage with investment activities. This conceptual paper focuses on the phenomenon of financial communication through fin-fluencers and its impact on retail investment decision-making. The article explains that investor dependence on fin-fluencer advice is influenced by various factors such as digital credibility signals, perceived trust, level of financial literacy, and social proof, which is a mechanism of persuasion by which people rely on the opinions of others. Though fin-fluencers help in spreading financial knowledge, the lack of regulation, the possibility of misinformation, and the speculative nature of persuasion can be dangerous to those who are not sufficiently informed. This research offers a theoretical perspective on the psychological and behavioral patterns of investors that engagement with fin-fluencers and formulates a framework for evaluating the advantages and challenges of this new digital investment ‌environment.