Kenyans turn to Instagram, YouTube to learn about wealth management

Kenyans turn to Instagram, YouTube to learn about wealth management

When Susan Wanjiku started doing short videos on financial literacy on Instagram after the pandemic hit in April 2020, she had less than 1,500 followers. Now she has over 36,800 followers.

Her YouTube channel, also started seven months ago, attracted subscribers in thousands, with her first post being on retirement planning as early as 20s.

“My growth, which has been organic, shows how people are hungry for financial literacy information,” Susan says.

She has been posting financial information on Instagram reels, YouTube, LinkedIn and her website.

Susan is among the few Kenyans that are providing money and wealth management information on digital platforms.

According to a recent Standard Chartered Wealth Expectancy Report in Kenya, there is a proliferation of new sources of financial information in the market off from the traditional ones including banks, insurance firms, and wealth management firms.

About 44 percent of Kenyans are taking online financial courses or watching masterclasses on YouTube, with 42 percent saying they follow experts on LinkedIn.

Those following experts on social media sites such as Twitter, Instagram, or Facebook were 35 percent.

Only 17 percent conducted their own research into specific investments and companies, representing the least commonly used source of financial advice.

So what is pushing Kenyans to these platforms?

Susan says the pandemic caused a shift and more people want to know how to budget, save and invest without losing their money.

This is also reinforced by increased hours estimated at six to eight hours spent on the mobile phone daily.

Her first content during the pandemic was how to handle a salary cut and invest with as little as Sh1,000 in avenues such as money market funds.

“All eyeballs are on social media,” she adds. “There is an awakening. Kenyans are becoming more aware and interested in financial matters.”

“What happened in 2020 shook our finances to the core.” What Kenyans want

Out of the content she provides, Kenyans have a strong interest in legitimate safe options of investing their money, budgeting, and how to get out of debt especially the mobile lending apps.

“People are scared of losing their money. The best way is to tell them how the investment option works and be clear about its pros and cons,” the personal finance coach says.

“People are living pay-cheque to pay-cheque and want to know how to use their money and have enough for bills and investment. Others want to get out of constant borrowing but are caught in the vicious cycle.’’

Rina Hicks, a director at Faida Investment Bank and also a personal finance coach, says everyone, whether 30 years or 60 years old, has recognised the need to increase their understanding of finances and raise confidence to make financial decisions and know what is relevant.“The truth is nobody is going to manage your finances successfully. Nobody sets out to manage your finances and make you the wealthiest person. Everyone has selfish interests and even the wealth management funds have core agenda, which is to increase shareholder value. When you recognise that, you realise that you have to take responsibility for growth where finances and wealth creation are concerned,’’ the founder of MoneyWise Kenya adds.Rina Hicks, director at Faida Investment Bank and Author of the Money-Wise: Create Grow & Preserve Wealth. PHOTO | POOL“With any investment opportunity whether buying from a certified institution, you need to have some basic level of understanding. You don’t ever want to delegate the matters that concern your wealth creation to someone else fully. This is like reading statements, understanding reports, whether you are paying the right fees and if you can negotiate more.’’Unlike the older generation, younger Kenyans want to diversify their income and are not only looking at land but also stocks, bonds, cryptocurrencies, and forex trading.“Our generation is not as interested in land as the generations before, but are more interested in passive income. They want to make money in their sleep,” Susan says.“One reason that Kenyans do not invest is not that they do not have money but because they do not know where to put the money and are scared to lose it.’’“Until you have dealt with personal finance, it would be difficult to do business finance,” adds Ivy Wanjiru, who goes by the name Just Ivy on her Instagram page.She says financial literacy has made consumers bolder to make investment decisions. “Gone are the days when consumers were forced to buy a product or a service because they don’t have options. Covid-19 has brought change. You can’t be satisfied with the interest rate your Sacco or bank is giving,” says Ivy who […]

source Kenyans turn to Instagram, YouTube to learn about wealth management

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