Financial management has become increasingly complex. Many people are having to navigate not just the rising cost of living but also an ever-expanding range of advice sources. Traditional experts like financial advisors now share the field with social media creators and AI tools. But with so many places to turn, knowing which guidance to trust is not always straightforward.

New research from Zable, surveying 2,000 UK credit card holders, has revealed that the vast majority of UK consumers are now seeking financial guidance from non-regulated sources. And many are failing to verify the information they receive properly before acting on it.

The research assesses the reliability of popular AI platforms when it comes to financial advice. It assessed four major AI tools on the accuracy and relevance of the guidance they provided to UK consumers across a range of personal finance topics.

83% of Brits turn to unregulated sources of information for financial advice

More than four in five (83%) in the UK have sought financial advice from unregulated sources. These include AI tools and social media platforms, as well as family and friends.

Even in more complex financial areas such as investing, mortgages, and financial planning, a significant proportion of consumers are still relying on informal guidance rather than regulated professional support.

The findings also revealed a strong generational trend. Younger adults were significantly more likely to seek unregulated financial advice. 93% of 25-34 year olds and 92% of 35-44 year olds reported that they had done so.

These age groups are often navigating major financial milestones, including buying property, building savings, managing debt, and planning for families. This seems to make them more likely to seek accessible and immediate guidance online.

One in 10 turn to AI for financial advice, but its reliability for UK consumers is questionable

Around one in 10 credit card holders already use AI tools for financial advice across areas such as budgeting, investing, and insurance. So Zable put their reliability to the test. It asked four major AI tools, Gemini, Grok, ChatGPT, and Claude, common personal finance questions. It then awarded their responses either a pass or fail mark.

The results were weak across the board, with most tools defaulting to US-focussed advice. This included references to 401(k)s, FDIC insurance, and American savings guidance that doesn’t apply to UK consumers.

Claude performed best overall with six passes, although some responses still included outdated UK information. Grok performed the worst, failing all nine questions, while ChatGPT achieved two passes and Gemini three.

Over two-thirds won’t check the risks involved before following advice.

There’s growing access to financial information online. But many consumers are failing to verify the guidance they receive properly before making financial decisions. 68% don’t check the risks involved before acting on financial advice.

Shockingly, only 24% would check a financial professional’s credentials before following advice. And just 22% would investigate whether advice may be influenced by sponsorships, commissions, or conflicts of interest.

With the growing influence of online “finfluencers”, particularly on platforms such as TikTok, where complex financial topics are often simplified, this lack of scrutiny leaves many consumers vulnerable to misleading or incomplete advice.

Poor financial advice is reportedly costing Brits hundreds of pounds per year, with almost a third reporting losses from bad advice in relation to credit cards and investing.

Almost a third (29%) of credit card holders, equivalent to over 10 million people, said they had lost money through bad advice given in relation to credit cards. 21% (nearly 7.5 million) reported losses of £100 or more in the past 12 months. This suggests that when things go wrong in these areas, the financial impact can quickly escalate beyond smaller, incidental losses.

Mortgage-related advice carried even greater financial consequences, with the most common reported loss range being £500-£1,000, reflecting the higher stakes involved in property-related decisions.

With so many sources of financial guidance now available, from social media creators to AI tools, it can be difficult to know where to turn for reliable advice. Arielle Rogers-Jenkins of Zable says:

When searching for financial advice, starting with regulated or official sources such as financial advisers, banks, building societies, and government-backed guidance services is key, as these organisations are held to specific standards and accountability in the UK.

For those making more complex decisions around investing, mortgages, pensions, or long-term financial planning, speaking to a qualified financial adviser can help ensure advice is tailored to individual circumstances.

Consumers can also verify that advisers are authorised by the Financial Conduct Authority (FCA) through the FCA Register and confirm businesses are legitimately registered through Companies House.

While AI tools, forums, podcasts, YouTube videos, and social media can be useful for building financial understanding, this type of content is often generalised and should always be researched further before acting on the advice.

A lot of advice online, particularly on social media, could be linked to sponsorships, commissions, or product promotions, so it’s important to seek clarification and avoid making financial decisions under pressure.

Featured image via the Canary

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