When SEBI recently tightened rules around influencers financial influencers, many banks, insurance firms, and fintech companies in India hit pause on their usual influencer campaigns. Here’s a deep dive into what’s changed and how brands shifted gears swiftly
SEBI’s Tighter Net on Influencers
In FY24, SEBI issued 45 advisories targeting unregistered influencers, while ASCI flagged that 30 percent of finance and crypto influencer content was misleading and a whopping 80 percent lacked proper financial disclaimers. These measures aren’t theoretical they’ve triggered legal action and fines, and even led platforms like YouTube to remove financial advice videos from both unregistered and registered creators.
BFSI Brands Pivot Toward Authentic, Lifestyle Storytelling
Where once finance first influencer content reigned, BFSI brands are now teaming up with more relatable storytellers including travel bloggers, home chefs, and lifestyle creators.
HDFC Bank’s Ashish Morone notes they’ve always preferred non finance influencers to highlight real world product usage like travel on a credit card or first home loans. Bajaj Capital’s Venkatesh Naidu and Visa’s Ramakrishnan Gopalan share similar views. They focus on experience led narratives, not financial jargon.
From “What to Invest In” to “How It Benefits You”
The messaging has moved from hard financial advice to personal ambition. Instead of expecting audiences to love discount calculation, BFSI brands now emphasize:
- A crisp trip funded by their card
- A dream home unlocked via their loan product
- A job exit plan enabled by a financial tool
This aligns with the concept of the de influencing of financial advice using finance as background to real life milestones. Fame Keeda’s Rahat Khan calls it tool first, action led, risk aware storytelling.
Ensuring Compliance and Trust
Every campaign now involves SEBI registered advisors or compliance teams during content creation. Brands require influencers to clearly understand product features, agree to guidelines, and not exaggerate claims like fastest, tallest, or best in class. If content misleads, brands cut ties quickly.
Measured Use of Finfluencers Continues
Not all brands have hit the brakes completely. Bajaj Capital is cautiously piloting influencer campaigns around mutual funds and insurance including a co branded credit card seeing positive impact. Still, every finfluencer is now vetted meticulously for compliance and transparency.
Why This Shift Matters to You
- Higher Brand Credibility – Lifestyle creators boost trust with real context
- Better Legal Safeguards – Working only with compliant creatives helps brands avoid hefty penalties
- Greater Audience Relevance – People respond more to stories that reflect real needs and aspirations
Final Takeaway
SEBI’s crackdown has prompted a strategic reset for BFSI influencer marketing. The focus has shifted from flashy investment tips to genuine, humanized storytelling grounded in compliance and authenticity. For brands entering this space, the lesson is clear:
Partner with compliant voices, prioritise user centric narratives, and innovate within regulatory boundaries.
FAQs
Q1 What triggered SEBI’s crackdown
SEBI’s FY24 advisories targeted misleading finfluencer promotions, and ASCI noted 30 percent of finance content lacked disclaimers prompting legal clampdowns.
Q2 How are BFSI brands reacting
They’ve pivoted to collaborations with lifestyle creators or are ensuring financial influencers are SEBI registered and fully compliant.
Q3 Are finfluencers banned entirely
No but they now need to be registered, compliant, and avoid offering direct investment advice.
Q4 Will influencer marketing in BFSI survive
Yes. Campaigns are evolving favoring goal oriented, storytelling based content that resonates legally and emotionally.
Q5 Who ensures compliance
Brands, agencies, and creators now require AI backed vetting, legal reviews, and involvement of SEBI registered advisors before publishing.
