How Gen Z is finding edutainment in ‘fintech’ brands on TikTok
4th August 2022
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Finance and TikTok are not words we would generally picture together. However, Gen Z is turning to this platform for some edutainment about finances, mortgages, investments, and more. This blog will discuss the rise of fintech, whether TikTok and edutainment are the way forward, and whether this platform is suitable for businesses.
The rise of fintech
Before we dive into fintech, let’s discuss the appeal of videos on these platforms; it’s edutainment—the form of education through entertainment. According to What Is Edutainment? Tips for Mixing Education and Entertainment in the Classroom The term was coined by American illustrator Peter Catalanotto in the 1990s while teaching students about writing and illustration. Combining education and entertainment is still a popular teaching method in the US today.
TikTok has championed the edutainment market. Since 2020 the platform has taken off, mainly with Gen Z users who made it famous for the sea shanties and viral dance trends. Influencers on TikTok are now sharing financial advice, called ‘FinTok’. As mentioned in FinTok: how TikTok is helping young people use cash wisely ‘Content tagged with the hashtag #stocktok has been seen by users 1.4bn times, while the slightly more mundane #personalFinance has garnered more than 4.4bn views. Tagged videos cover everything from budgeting to Isas, from taxes to debt.’ The analytics show that people, especially young people, are engaging with these videos and inspired enough to start investing.
The driving force behind fintech and the rise of ‘FinTok’ is that many young people feel that they are not prepared. Influencers on TikTok create videos that provide tips and advice. These appear on a feed called ‘for you page’ where the algorithm offers a diverse range of videos. Many influencers on TikTok providing financial advice see it as a space and opportunity to educate others. Content creators use this platform to make complex subjects easier to understand through short animated and humorous videos for Gen Z to learn about serious topics. It has been identified with this audience that Gen Z struggle to understand information about the FinTech industry and that 60-second videos on TikTok are the preferred way to engage with them.
Are TikTok and edutainment the way forward with getting information to consumers?
‘Only about 10% of top influencers mention financial qualifications in their TikTok biographies or on their personal websites, according to Personal finance is a hit on TikTok. Viewers are seeing only one side of what these influencers are doing. ‘One problem for UK users is that the majority of FinTok content is American. “Obviously, there’s a difference in our financial systems, but the bigger problem is that people might take influencers’ statements as fact, without doing their due diligence,’ says Matthew Flower in FinTok: how TikTok is helping young people use cash wisely. When working with finance influencers, it will be necessary for brands to get involved with official content and have sponsored posts to help regulate the information.
Anyone can go viral on TikTok as all you need to start posting videos is the app and let the algorithm put you on the ‘for you page’ where you will be easily seen. With other social platforms, a person would need to establish trust and relationships with followers; on TikTok, it is about a quick interaction. FinTok isn’t going anywhere, and TikTok seems to be the preferred platform for the younger generation to learn about important information.
Field marketing to Gen Z may become less face-to-face and more of an online presence. The finance sector will need to develop student marketing strategies as this demographic feel they do not have the knowledge they need for life after school.
Is TikTok a suitable platform for businesses?
Figures shared with Guardian Money by the firm Hargreaves Lansdown ‘show that 46% of 18-to34-year-olds have become more interested in investing over the past six months, and one in five attributed this newfound enthusiasm to TikTok,’ according to FinTok: how TikTok is helping young people use cash wisely. Gen Z’s members realise they need to have equity for when they are older.
Brands will have to work with marketing agencies to create campaigns that provide the correct information in fun yet educational way to engage with Gen Z on essential matters. TikTok has introduced some regulations to help keep the community safe with a #factcheckyourfeed campaign. When working with financial influencers on the platform, brands must ensure that they find reliable ones who provide correct information.
According to TikTok Invades Finance! How Financial Marketers Can Leverage the Social Media Platform to Reach Young Investors The content that is produced for this should be aimed at Gen Z, and some potential topics that could be covered are: explaining how credit scores work, what lenders are looking for, the best accounts for building credit, most reliable long-term investments, demystifying investments, setting up retirement accounts, saving to purchase a home, real estate investing, and crypto primers. Ensure you include the top hashtags like #personalfinance, #investing, and #financialtips so your content can be found.
To learn more about what social media platforms would work for your brand or to create a social media strategy, contact our team today by visiting our contact page.