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Promises and peril — the South African finfluencer phenomenon

Promises and peril — the South African finfluencer phenomenon
Business Maverick Reporter
By Business Maverick Reporter
13 Apr 2025
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Finfluencers are reshaping how South Africans engage with financial content — but with low financial literacy levels and rising concerns over misinformation, the unregulated space poses serious risks. As the Financial Services Conduct Authority moves to tighten oversight, some finfluencers are choosing compliance and transparency, while others operate in a grey area.

The digital landscape in South Africa is being reshaped by financial influencers, or “finfluencers”, who are increasingly shaping how people access and engage with financial information.

As their popularity grows, particularly among younger investors, concerns are mounting about the spread of misinformation, lack of regulatory oversight and perhaps most concerning, a lack of qualification and expertise in the financial sector.

This is especially concerning in a country where financial literacy remains a significant challenge. According to a survey by the Financial Services Conduct Authority (FSCA) and Human Sciences Research Council (HSRC), the average South African scored a mere 52 out of 100 in 2020 financial literacy, underscoring a persistent vulnerability to poor financial advice.

Regulatory oversight


With this vulnerability in mind, the need for regulatory oversight becomes increasingly pressing, particularly when finfluencers provide unqualified financial advice. The FSCA said it was “considering the position of finfluencers and how they fit into our regulatory framework”.

However, anyone providing financial advice related to a financial product requires authorisation. Failure to obtain authorisation constitutes a contravention of the Financial Advisory and Intermediary Services Act.

According to the FSCA’s draft conduct standard, which comes into effect on 26 March next year, financial institutions and service providers offering financial education to customers will be required to adhere to minimum standards and requirements. Key aspects of this standard include:

  • Governance arrangements: Institutions must establish robust governance structures to oversee the design and implementation of financial education initiatives. This includes ongoing monitoring and review of their effectiveness and ensuring that responsible employees and service providers have the necessary skills and expertise.

  • Design and development: Financial education initiatives should aim to enable individuals and small businesses to make informed financial decisions, promote positive financial behaviours and contribute to long-term skills development. Content must be based on objective information targeted at specific needs, and distinct from sales processes.

  • Delivery platforms: Institutions can use various delivery platforms (eg online, face-to-face) provided they are suitable for the target group and ensure effective reach.

  • Measurability and evaluation: Outcomes of financial education initiatives must be measurable to assess effectiveness and identify areas for improvement.

  • Reporting: Financial institutions are required to report on their financial education initiatives to the FSCA, with the authority determining the form and frequency of these reports.

  • Marketing restrictions: Financial education cannot be used for excessive marketing or sales of specific financial products or services.


In line with this regulatory focus on compliance, finfluencer Nicolette Mashile, whose social media name is the Financial Bunny, is taking a proactive approach to ensure her profile is about financial literacy education rather than providing financial advice.

Her approach is to provide information and general financial concepts without promoting specific financial products or services.

“We teach the principle, not promote the product,” Mashile said.

Mashile said the commitment to compliance and transparency was essential in the finfluencer space, where the lines between education and advice could become blurred. She includes disclaimers in her content, highlighting that the information is not financial advice.

Although Mashile is the public face of the Financial Bunny, she has a whole team working behind the scenes, including a videographer, a financial journalist, a book editor, a social media community manager, and a script writer.

Mashile pointed to an instance recently where she was approached by a leading South African bank to produce a paid 60-second content piece specifically about their tax-free savings account.

“We respectfully declined,” she said.

“We believed that:

  • It is neither responsible nor effective to attempt to educate the public on a complex product in just 60 seconds.

  • Speaking specifically about the tax-free savings account product would qualify as a product recommendation, and therefore fall under financial advice, which we are neither licensed nor willing to provide.”


Mashile said the Financial Bunny platform had, over the years, turned down many such offers.

Excessive marketing and branding a no-go


As the industry navigates these complexities, regulatory guidelines provide crucial guidance. For instance, the FSCA prohibits financial institutions from using financial education initiatives for excessive marketing or branding purposes. Specifically, financial institutions may not use these initiatives for:

  • Excessive marketing of a specific brand or financial institution.

  • Marketing and sales of a specific financial product or financial service.



What you should watch for



  • When it comes to finfluencers on social media, here are key things to be wary of:

    1.   Lack of qualifications: Many aren’t licensed financial advisers, so their advice may be opinion-based, not grounded in professional expertise.

    2. Hype and fomo tactics: They often promote “hot tips,” fast gains, or trendy investments that could be high-risk or short-lived. Using time-limited offers, they pressure you into buying courses or joining paid groups. They claim their method will soon be “too saturated”, to persuade people to act fast.

    3. Conflicts of interest: Some are paid to promote products or platforms, which they might not disclose clearly.

    4. One-size-fits-all advice: Personal finance is just that — personal. What works for one person may not suit your goals or risk tolerance.

    5. Cherry-picked results: Success stories are often showcased, while losses or failed strategies are hidden. Influencers showcase followers who made money, but ignore those who lost everything by following their advice.

    6. Pump and dump risks: In extreme cases, influencers may hype low-volume assets, drive up the price, and sell once others jump in, leaving followers with losses.

    7. They don’t disclose their actual income sources: Instead of making money from their supposed investment strategies, they profit from YouTube ad revenue, sponsorships or course sales.

    8. Regulatory grey areas: Some operate outside the oversight of financial regulators, meaning there’s little accountability if things go wrong.


    Always do your own research, check credentials, and be sceptical of anything that seems too good to be true.



Thriving in an unregulated space


Meanwhile, the finfluencer space continues to grow, with some individuals without formal qualifications in finance still offering advice and guidance to large followings.

finfluencers

These finfluencers range from small-scale operators like Vuyo Mabuza, a 24-year-old architecture student who provides financial advice, particularly on investments to a small group – to established personalities like Mukhali Miswe, a seasoned finfluencer with eight years of experience, has amassed a significant following of 36,000 on TikTok and 213,000 on Instagram by maintaining a strong online presence and offering guidance on investments and financial planning.

Mabuza’s journey into investing began with a desire for financial independence inspired by a friend’s success. He acknowledged both risks and benefits in the space: “There is a lot of false information… most people don’t know what they’re talking about or don’t have money themselves.”

Mabuza told Daily Maverick that as he had no background in finance, he spent most of his time researching, reading books and studying the market before offering his advice.

When asked about her qualifications in finance, Miswe declined to comment, but said that her motivation stemmed from a desire to create a better life for herself and her family. DM

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