BNPL ads more dangerous than us

Finfluencer Natasha Etschmann – whose @tashinvests profiles have 86,600 followers on TikTok and 31,500 on Instagram – said concerns about finance comments on social media were overblown, given that financial companies were able to promote freely their products in paid advertising and marketing campaigns.

“We shouldn’t live in a world where talking openly about our financial situation, sharing what we learn, is heavily criticized and discouraged, but ads to buy now, pay later [apps] and payday loans are prevalent, ”Ms. Etschmann said. “Financial literacy is more important than ever and we need more regular people to share their travels. “

“Get Rich Slow Club”

While supporting regulatory efforts to crack down on unscrupulous players in the financial system, Etschmann said the rules were not always clear for content creators.

“I have contacted ASIC and lawyers to make sure my content does not violate the guidelines for providing unlicensed advice, but even so, there is still a lot of gray area.”

Far from promoting pump and dump action programs, Ms. Etschmann is a founding member of the Get Rich Slow club, preaching long-term investment, alongside fellow influencers Sarah Scully-Leaf, Aleks Nikolic and Queenie Tan.

They are paid to promote products such as the Pearler ‘Anti-Robinhood’ trading platform, which encourages its young clients to buy and hold exchange-traded funds rather than actively choosing stocks or cryptocurrencies.

Pearler co-founder Nick Nicolaides said he supported Ms Etschmann – with whom Pearler has a paid affiliate marketing deal – and other influencers to continue to share their “money journeys”.

Mr Nicolaides, a former investment banker at JPMorgan, agreed that there is a double standard in place, that unregulated advice on social media is considered harmful, but TV and online ads are ‘darlings. market ”are an accepted part of the free market.

“Young people who share their financial lives should be applauded and encouraged,” he said. “Yes, it pushes the boundaries, but not at the scale of BNPL and the latest reincarnations of the payday loan. We are proud to support these young people.

He declined to disclose how much finfluencers are paid by Pearler to include commercial hyperlinks in their content, but said all promoters were paid the same amount. Pearler promotions usually take the form of free brokerage credit for a new account opener.

The neo-broker helped establish the Get Rich Slow Club and is sponsoring an event for new investors hosted by the club in Surry Hills in Sydney on December 2.

ASIC Commissioner Danielle Press said in June that investors or financial services companies should deal with any person or organization suspected of “carrying out financial advice” online without the license or qualifications. required.

ASIC President Joe Longo and influencer Aleks Nikolic will talk about financial advice and the next generation of investors at the Financial Review Wealth & Super Summit Monday, November 22.

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