#594
The Finfluencer Fallout
Published:
Jun 07, 2025
Author:
Sarah Parsons Wolter
Share:
Social media’s financial advisors just got a harsh reality check. In a dramatic move, the UK's Financial Conduct Authority (FCA) has arrested three high-profile online personalities accused of peddling misleading investment guidance to their audiences. This crackdown is part of a broader, international sweep aimed at controlling the unchecked influence of social media figures in financial markets.
The meteoric rise of “finfluencers” has mirrored the growing reliance among young investors on social platforms for financial advice. Recent surveys underscore this trend: 77% of Gen Z and 61% of millennials actively seek financial insights online. But this digital reliance has come with real-world pitfalls: 37% of Gen Z and 25% of millennials have faced financial trouble, including IRS audits, after acting on such guidance, and approximately one-quarter report falling victim to scams disguised as genuine financial advice, according to Credit Karma.
The UK's action isn't isolated; regulators in the US, Australia, and other key financial hubs are also tightening the screws. These moves have rattled the influencer industry, exposing major regulatory gaps and triggering increased compliance demands for digital personalities.
The takeaway? Digital fame provides no shield from regulatory scrutiny. It's high time investors scrutinize online financial advice more closely—because the days of unchecked influence are clearly numbered.
Portfolio News
AgentSmyth raises $8.7m to bring autonomous agents to capital markets - We are excited to announce FinTech Collective’s lead investment in AgentSmyth, which this week announced the close of an $8.7m Seed round, with participation from Thomson Reuters Ventures and BNY Mellon through its Ascent innovation program. AgentSmyth delivers autonomous agents that compress the research-to-trade workflow from hours to seconds, providing institutional traders with real-time, auditable intelligence. Read more
Simetrik raises additional $30m to scale AI reconciliation platform across the U.S. and high-growth markets - Congratulations to Simetrik, which today announced an additional $30m investment led by Growth Equity at Goldman Sachs Alternatives. The follow-on financing brings Simetrik’s Series B to $85m and will accelerate the company’s expansion in the United States and other fast-growing, highly regulated markets. Other Series B participants include Cometa, FinTech Collective, Moore Capital Management, Monashees, and Upload Ventures. Read more
Experian and Plaid partner on cash flow data for lenders - With the addition of cash flow insights to traditional credit data, lenders gain a broader view of consumers’ finances and can assess risk more efficiently and holistically, especially for consumers with limited credit history. Read more
The Finfluencer Fallout
International influencer crackdown leads to three UK arrests - An international investigation led by the UK's Financial Conduct Authority (FCA) has targeted influencers promoting financial products on social media, resulting in three arrests and 50 warning notices. Read more
Industry News
Americans are finally saving almost what they’re supposed to for retirement - The average savings rate in 401(k) plans rose to a record high 14.3% of income in the first three months of this year, according to a Fidelity Investments analysis. That is just a shade below the 15% annual savings rate financial advisers often recommend over a four-decade career. Read more
How Morgan Stanley tackled one of coding’s toughest problems - Morgan Stanley is now aiming artificial intelligence at one of enterprise software’s biggest pain points, and one it said Big Tech hasn’t quite nailed yet: helping rewrite old, outdated code into modern coding languages. In January, the company rolled out a tool known as DevGen.AI, built in-house on OpenAI’s GPT models. It can translate legacy code from languages like Cobol into plain English specs that developers can then use to rewrite it. Read more
Stripe co-founder: banks ‘very interested’ in stablecoin use - The report said Stripe is among several companies in the FinTech space — including PayPal, FIS, and Fiserv — that are using stablecoins as a method of payment, and not just something used in crypto trading. Read more
Trump team signals it wants to keep control of Fannie, Freddie to boost budget - This approach could generate revenue for the US government, potentially to help fund tax cuts, but may disappoint Wall Street investors who were expecting a windfall if the companies were set free. Read more
Klarna launches US debit card to chase more banking revenue - The Swedish business said 5m consumers are on the waitlist for the Visa-powered Klarna card, which offers customers real-time transfers and deposits alongside the firm’s buy-now-pay-later credit options. Read more
Europe aims to sidestep capital market impasse with new label - A group of European countries is launching an initiative called "Finance Europe" to encourage retail investors to put their savings into the continent's economy, as the region tries to accelerate progress on integrating and deepening its capital markets. Read more
Stablecoin firm Circle’s IPO raises $1.1b in upsized deal - At $31 per share, the company's market value is $6.9b based on outstanding shares, and its fully diluted valuation is about $8.1b. Circle's USDC stablecoin has about 29% of the stablecoin market, with $61b worth of tokens in circulation as of May 29. Read more
JPMorgan plans to offer clients financing against crypto ETFs - JPMorgan will allow trading and wealth-management clients to use cryptocurrency-linked assets as collateral for loans, starting with BlackRock's iShares Bitcoin Trust. The bank will also consider clients' crypto holdings when assessing their overall net worth and liquid assets, similar to stocks, cars, or art. Read more
Brazil set to add recurring payments feature to Pix - The feature, which is called Pix Automático, will allow users to authorize recurring payments with one consent. Central bank officials said that Pix Automático is expected to disrupt both the traditional paper method of paying bills and the existing automatic debit services offered by banks; make it easier for small businesses to offer automatic debit; and enable the 60m Brazilians who do not have a credit card to access subscription-based services. Read more
Frothy tech returns helped mint 600,000 millionaires last year - The number of high-net worth individuals across the globe rose to a record in 2024, driven largely by gains in the US stock market. Read more
Robinhood completes $200m acquisition of crypto exchange Bitstamp - The acquisition helps Robinhood expand outside the U.S., accessing Bitstamp’s customers across the EU, UK, and Asia. Read more
Select Financings
Amperos Health - New York based healthcare billing and claims automation startup raised $4.2m in Seed funding led by Uncork Capital. Read more
Baobob Insurance - Berlin based insuretech raised €12m in Series A funding led by Viola Fintech and eCapital. Read more
Boltech - Singapore based embedded insuretech raised $147m in Series C funding led by Dragon Fund. Read more
Crabi - Mexico based digital auto insurance company raised $13.6m in Series A funding led by Kaszek and Ignia. Read more
Dataplot - California based global location intelligence provider raised $20.5m in Series B funding led by F-Prime. Read more
Kiwi - Puerto Rico based fintech focused on underbanked Latinos raised $7.8m in Series A funding led by LIP Ventures and Advent-Morro Equity Partners. Read more
Nomupay - Ireland based payments startup raised $40m growth Series C led by SoftBank. Read more
OatFi - New York based credit network developer for B2B payments raised $24m in Series A funding led by White Star Capital. Read more
OrionX - Chile based crypto exchange raised $10m in Series A funding led by Tether. Read more
Rails - Miami based hybrid crypto exchange raised $14m in new funding led by Slow Ventures and CMCC. Read more
Rally UXR - New York based user research SaaS raised $11m in Series A funding led by Canapi Ventures. Read more
Reserv - New York based insurance claims admit platform raised $25m in Series B funding led by Flourish Ventures. Read more
FinTech Collective Newsletter
Curated News with Context
Delivered every Monday, the weekly newsletter, produced by our team, provides a tightly edited rundown of global fintech news, along with a bit of our original analysis.