Finfluencers focused on financial literacy shouldn't face strict regulations: Twinkle Jain

Finfluencer Twinkle Jain has emphasised that there shouldn’t be much external oversight by financial authorities over finance creators, rather these creators should practise self-regulation. However, if regulation is deemed necessary, those providing stock tips promising rapid profits should face stricter regulations due to their misleading nature, while other financial influencers promoting financial literacy should be subject to lighter regulations.

During the ‘Spotlight’ episode, Jain said, “During my corporate job as a Chartered Accountant (CA), I noticed many friends making financial mistakes, spending more than their income, having unnecessary EMIs, and maintaining a lifestyle beyond their means. As a CA, I began sharing basic financial advice on Instagram through entertaining reels to help others learn and enjoy the process. My friends often sought guidance on tax-saving, degree-related queries, and similar topics around March and July.”

She highlighted that her initial viral content featured the money-saving tips she employed when purchasing her MacBook.

“I created a reel explaining how to secure refunds, utilise cards and take advantage of discounts, etc. This content, focused on 3-4 key aspects, gained significant traction and marked the beginning of my content creation journey,” Jain added.

She also emphasised the importance of influencers practising self-regulation instead of being regulated by any financial authority.

“They hold sway over many followers who trust them for reliable information. Influencers need to be accountable for the content they share, avoiding misleading information. There are two types of influencers: one who gives stock tips with promises of quick profits, often through misleading tactics, and the other who educates people on financial matters without pushing specific stocks. The former should be regulated due to their misleading nature, while the latter, who contribute to financial literacy, should face lighter regulations. Personally, as a content creator focusing on taxes, personal finance, and educating people about the psychology of money, I believe such creators should not face strict regulations,” she added.

Furthermore, Jain pointed out that as a finance creator, entertaining and educating at the same time is quite challenging. First, there's the process of conceptualising ideas, which takes time. Then comes the research phase, followed by scripting.

“It's essential to present the content in an entertaining manner, considering the shortened attention spans on platforms like Instagram. Since people seek entertainment on Instagram, your content needs to be engaging and easily understandable. For instance, when discussing complex topics like tax sections, it's crucial to simplify the language for the audience to grasp the information. Overall, the entire process involves a significant amount of time dedicated to thinking, scripting and execution, with an emphasis on accessibility and engagement,” Jain added.

On being asked how the audience can distinguish between reliable and unreliable information being given out by certain influencers, Jain emphasised that some creators may have given out questionable financial advice in the recent past. In such cases, it's essential to assess the authenticity of the creator.

“Blindly trusting anyone is not advisable. It's important to examine the resources they use and whether they possess specific qualifications. For instance, if an 18 or 17-year-old is advising on tax savings, it's crucial to consider their experience in the income group. Having a relevant certification or background adds credibility to the creator. Checking the creator's information is vital, but it's equally important to independently verify it. Instead of blindly following advice, verify if it suits your situation before applying it to your life. Not all advice is universally applicable,” she said.