Financial Influencers Drive Financial Product Purchases, Financial Literacy Acts as a Safeguard

Illustration By Ai

FORMOSA NEWS

Persuasive communication by social media influencers significantly affects financial product purchase decisions among Generation Z and Millennials in Makassar, Indonesia. This finding comes from a study conducted by Andi Anggi Kemalasari, Hasisa Haruna, Nur Rahmi, and Utiana Usman from Universitas Negeri Makassar (UNM), published in 2026 in the International Journal of Applied and Advanced Multidisciplinary Research (IJAAMR). The study highlights that influencers can encourage the adoption of digital financial products, but their impact is moderated by financial literacy and strengthened by effective customer acquisition strategies.

The findings are particularly relevant as financial technology (fintech) continues to reshape how people access and use financial services. In Makassar, one of Eastern Indonesia’s growing digital economic hubs, younger generations increasingly rely on digital investment platforms, e-wallets, buy-now-pay-later services, and online insurance products. Social media has become a major source of information and recommendations for these services.

As fintech companies compete for new customers, influencer marketing has emerged as one of the most widely used promotional tools. Through short videos, personal testimonials, and educational content shared on platforms such as TikTok and Instagram, influencers often establish strong connections with their audiences. However, an important question remains: do consumers purchase financial products because they fully understand them, or because they are persuaded by attractive online promotions?

To explore this issue, researchers from Universitas Negeri Makassar surveyed 234 Generation Z and Millennial respondents living in Makassar. All participants were active social media users who had been exposed to financial product promotions within the previous three months. Using a digital questionnaire, the researchers examined the relationships between influencer communication, financial literacy, customer acquisition cost (CAC) effectiveness, and financial product purchase decisions.

The results revealed that persuasive influencer communication has a positive and significant impact on consumers’ purchasing decisions. The more credible, engaging, and convincing an influencer appears, the more likely audiences are to purchase or adopt a financial product. The research model explained 64.2 percent of the variation in financial product purchase decisions, indicating that influencer communication, financial literacy, and marketing efficiency together play a substantial role in shaping consumer behavior.

One of the study’s most important findings concerns the role of financial literacy. Researchers found that higher levels of financial literacy reduce the direct influence of influencers on purchasing decisions. Consumers who understand financial concepts, investment risks, and product regulations are more likely to critically evaluate promotional messages before making decisions.

According to Kemalasari and her colleagues at Universitas Negeri Makassar, financial literacy functions as a “rational filter.” Financially literate consumers do not simply follow trends or rely on an influencer’s popularity. Instead, they assess the benefits, risks, and legitimacy of financial products before committing their money.

In contrast, individuals with lower financial literacy are more vulnerable to emotional appeals, influencer lifestyles, and the fear of missing out (FOMO). These consumers are more likely to make impulsive decisions based on social influence rather than careful financial analysis.

The study also found that Customer Acquisition Cost (CAC) effectiveness strengthens the impact of influencer communication. CAC refers to the resources a company spends to attract new customers. In practice, effective CAC strategies include promotional discounts, cashback offers, referral codes, reduced service fees, and simplified registration processes.

When influencer campaigns are combined with attractive incentives, consumers become more willing to try financial products. The researchers observed that persuasive communication and financial rewards create a powerful combination that increases customer conversion rates.

The demographic analysis of respondents provides additional insight into current consumer trends. Generation Z accounted for 63.2 percent of participants, while Millennials represented 36.8 percent. TikTok emerged as the leading platform for obtaining financial information, used by 44.4 percent of respondents, followed by Instagram at 41.9 percent.

These figures demonstrate the growing importance of short-form video content in financial communication. Social media is no longer simply a platform for entertainment; it has become a key channel influencing financial behavior and decision-making among younger consumers.

The study also identified the most popular financial products among respondents. Digital investment products, including mutual funds, stocks, and digital gold, were the most frequently purchased, accounting for 50.4 percent of responses. Digital wallets and buy-now-pay-later services followed at 35.9 percent, while digital insurance products represented 13.7 percent.

For the fintech industry, the findings offer several practical implications. The researchers recommend that companies move beyond simply partnering with influencers who have large follower counts. Instead, they should focus on creating transparent, educational, and trustworthy content while combining influencer campaigns with well-designed promotional incentives.

The study also carries important implications for educators and policymakers. Strengthening financial literacy among young people can help them make more informed and responsible financial decisions. As consumers become more knowledgeable, they are less likely to be influenced by misleading promotions or risky financial trends.

Overall, the research demonstrates that influencer marketing can be a highly effective tool for promoting financial products. However, financial literacy remains a critical safeguard that enables consumers to make rational choices. The interaction between persuasive communication, financial knowledge, and strategic marketing incentives ultimately determines whether financial product purchases are informed decisions or merely responses to social media trends.

Author Profile

Andi Anggi Kemalasari is an academic and researcher at Universitas Negeri Makassar, specializing in entrepreneurship, digital marketing, and consumer behavior. This study was conducted in collaboration with Hasisa Haruna, Nur Rahmi, and Utiana Usman, who are also affiliated with Universitas Negeri Makassar. Their research focuses on digital economy development, social media marketing, and financial behavior among young consumers in Indonesia.

Research Source

Kemalasari, A. A., Haruna, H., Rahmi, N., & Usman, U. (2026). “Persuasive Communication in Influencer Marketing and Financial Product Purchase Decisions: Examining the Roles of Financial Literacy and Customer Acquisition Cost (CAC) Effectiveness among Generation Z and Millennials in Makassar City.” International Journal of Applied and Advanced Multidisciplinary Research (IJAAMR), Vol. 4, No. 7, 2026, pp. 701–720. DOI: 10.59890/ijaamr.v4i7.278.