by Kurt Purkiss
In the ever-evolving landscape of the digital age, the emergence of coaches and finfluencers didn’t occur in isolation; instead, it can be traced back to a number of factors, including the unprecedented impact of the COVID-19 pandemic.
In part two of our series we take a closer look at how the pandemic played a pivotal role in shaping the rise of these influencers.
Digital Connection in a Time of Isolation
As the pandemic forced individuals into isolation and upended traditional forms of interaction, people turned to social media platforms as a lifeline. The desire for connection, information, and inspiration in a time of uncertainty led to a significant increase in social media usage.
In April 2020, a report from the Australian Broadcasting Corporation (ABC) indicated that the major social media platforms, including Facebook, Instagram, Twitter, and TikTok, saw a surge in usage ranging from 17% to 51% compared to periods without lockdown measures.
This surge in online activity provided the perfect breeding ground for coaches and finfluencers to reach a captive audience seeking guidance, reassurance, and new paths to financial stability.
Enter Stage Left
The pandemic not only impacted physical health but also triggered widespread economic insecurity. With job losses, business closures, and financial uncertainty a daily occurrence, the traditional methods for success were questioned. Individuals were compelled to rethink their aspirations and explore alternative avenues for income generation and financial security.
Enter the coaches and fininfluencers!
Armed with tales of seemingly effortless financial success, their stories of pivoting careers, launching online businesses, drop shipping, trading strategies, and navigating investments during challenging times resonated deeply with a public hungry for hope. The allure of quick fixes and solutions to the daily anxieties that the pandemic brought about became all the more enticing against the backdrop of economic upheaval.
Igniting Hope Amidst Turmoil: The Influencer Phenomenon
The compelling narratives created by these characters undoubtedly rekindled hope during uncertain times, offering a path to empowerment. Positioned as navigators through financial turbulence, these individuals provided belief that personal growth and financial independence were attainable despite the chaos.
Their messages carried a motivational undercurrent, fostering camaraderie and unity among their communities. Through storytelling, they created a connection that transcended mere expertise, instilling resilience and a shared journey toward better days. However, within this symphony of hope, a cautionary note emerges. The allure of transformation occasionally led some to embrace influencers’ narratives without critical scrutiny, blurring the line between genuine guidance and self-promotion.
What Lies In The Shadows
While the pandemic undoubtedly fuelled the rise of coaches and finfluencers, it also cast a spotlight on the vulnerabilities of everyday Australians when it comes to making financial decisions.
The pursuit of financial stability saw many susceptible to the allure of dubious promises. As followers subscribed and signed up for programs that promised to share the secrets of financial security and wealth, the glaring absence of proper qualifications and regulatory oversight became a stark revelation, propelling the most at-risk individuals onto a precarious path of financial difficulty.
The lack of rigorous qualifications and industry-wide regulations provided an open avenue for self-proclaimed experts to flourish. Charismatic advice, while inspiring, sometimes lacked the depth needed for informed decisions. The gap or desperations between aspiration and prudent judgment led some astray, transforming their pursuit of empowerment into a downward spiral of financial hardship.
The absence of standardised guidelines and of regulatory oversight within the world of coaches, and finfluencers allows these individuals to operate unchecked. It’s this very freedom which, in some instances, has led these self-appointed experts to capitalise on the desperation of those seeking guidance, creating an alarming blend of exploitation disguised as empowerment.
In part three, we will explore how society is grappling with the challenge of striking a balance between the potential benefits and the hidden dangers of this trend. As the digital world of coaches and finfluencers continues to grow, we explore how to harness the positive aspects while safeguarding against potential harm.
We Can Help
If you or a loved one have experienced a loss or unfortunate outcome as a result of unscrupulous providers, we would be pleased to sit down and talk through your options moving forward. To get in touch, just contact our office below or call 02 4969 6600.
Disclaimer: The content of this article is for informational purposes only and should not be construed as financial or professional advice. Readers are encouraged to consult qualified professionals before making any financial decisions.