New research from Zable reveals how unregulated financial advice sources are increasingly shaping important financial decisions among UK consumers.
A survey of 2,000 UK credit card holders found that 83% of people are seeking financial guidance from non-regulated sources, with usage highest among younger generations, including 93% of 25–34-year-olds. Around 1 in 10 already use AI tools for financial advice. However, Zable’s internal testing found these tools consistently fell short when assessed for accuracy and relevance to UK consumers. More than two-thirds (68%) of Brits don’t check the risks involved before acting on financial advice. Nearly a third (29%) reported losing money due to poor advice relating to credit cards, while 28% said they had experienced financial losses linked to investing advice.
Where consumers turn for advice
Managing finances has become increasingly complex, with many people navigating rising living costs and an ever-expanding range of advice sources, from traditional experts to social media creators and AI tools. But with so many places to turn, knowing which guidance to trust is not always straightforward.
More than 4 in 5 (83%) have sought financial advice from unregulated sources, from AI tools and social media platforms to 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.
Key areas where unregulated advice is sought include
- Salary and wages: 54%
- Savings: 49%
- Insurance (e.g. life, health, income protection): 48%
- Monthly budgeting: 48%
- Pensions: 48%
- Credit cards: 46%
- Investing: 45%
- Financial planning: 43%
- Renting versus buying property: 43%
- Wills and trusts: 40%
- Taxes: 38%
- Personal loans: 37%
- Mortgages: 36%
- Debt repayment strategies: 35%
- Debt consolidation: 33%
The findings also revealed a strong generational trend. Younger adults were significantly more likely to seek unregulated financial advice, with 93% of 25–34-year-olds and 92% of 35–44-year-olds reporting they had done so. These age groups are often navigating major financial milestones, including buying property, building savings, managing debt, and planning for families, making them more likely to seek accessible and immediate guidance online.
AI tools tested for reliability
With around 1 in 10 credit card holders already using AI tools for financial advice across areas such as budgeting, investing, and insurance, Zable put their reliability to the test, asking four major AI tools, Gemini, Grok, ChatGPT, and Claude, common personal finance questions before awarding their responses either a pass or fail mark.
The results were weak across the board, with most tools defaulting to US-focused advice, including references to 401(k)s, FDIC insurance, and American savings guidance that does not 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.
Consumers failing to check risks
Despite growing access to financial information online, many consumers are failing to properly verify the guidance they receive before making financial decisions, with 68% not checking the risks involved before acting on financial advice. 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.
Financial losses mount for cardholders
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, with 21% (nearly 7.5 million) reporting 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.
Where to find reliable guidance
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, Senior Product Manager (UK Credit Cards) at 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.”