From Attention to Financial Behaviour: Modelling the Influence of Finfluencer Credibility, Algorithmic Exposure and Social Proof on Gen Z Investment Risk-Taking

Akshay Puttabakula, Raghu Raja Mehra

Abstract: A large share of Generation Z now meets financial markets for the first time on a social media feed rather than in a bank branch. Short videos by financial influencers, or 'finfluencers', reach millions of young viewers, and recommendation algorithms decide which of those videos a viewer sees. This study asks how three features of that environment - how credible the finfluencer seems, how often the algorithm shows financial content, and how many peers appear to be investing - relate to how much investment risk young people are willing to take. A questionnaire covering five constructs was designed from established scales, and a simulated response set of 268 respondents aged 18-26 was generated to demonstrate the analysis; the dataset is clearly labelled as artificial and is not a real survey. All scales showed good reliability (Cronbach's alpha 0.85 to 0.89). Multiple regression explained 58.8% of the variation in risk-taking. Social proof had the strongest standardised effect (β = 0.39), followed by perceived credibility (β = 0.30) and algorithmic exposure (β = 0.19), while financial literacy had a smaller negative effect (β = -0.14). Literacy did not moderate the credibility effect (β = -0.02, p = 0.56), which suggests that knowing more about finance reduces risk-taking directly but does not make a young investor resistant to a persuasive creator. Respondents in the top third of algorithmic exposure reported a risk-taking score of 4.30 against 3.49 in the bottom third. The findings support financial education that trains source evaluation, not only product knowledge.

Keywords: finfluencer; social media; source credibility; social proof; recommendation algorithms; financial literacy; Generation Z; investment risk-taking

How to Cite?: Akshay Puttabakula, Raghu Raja Mehra, "From Attention to Financial Behaviour: Modelling the Influence of Finfluencer Credibility, Algorithmic Exposure and Social Proof on Gen Z Investment Risk-Taking", Volume 15 Issue 8, August 2026, International Journal of Science and Research (IJSR), Pages: 2119-2126, https://www.ijsr.net/getabstract.php?paperid=SR26825123547, DOI: https://dx.doi.org/10.21275/SR26825123547

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