New research indicates that a large majority of UK consumers are relying on informal and unregulated channels for financial guidance, raising concerns about the potential risks to their money decisions amid rising living costs.
The study from Zable, which surveyed 2,000 UK credit card holders, found that 83% of respondents had sought financial advice from non-regulated sources. These include AI tools, social media platforms, family and friends, online forums, podcasts, and YouTube videos.
Usage is particularly high among younger generations. Some 93% of 25–34-year-olds and 92% of 35–44-year-olds reported seeking such guidance. These age groups are often dealing with major financial milestones such as buying property, building savings, managing debt, and planning for families.
Where Brits seek unregulated advice
Even in complex areas such as investing, mortgages, and financial planning, significant numbers are relying on informal sources rather than regulated professional support. The survey found the following breakdown by topic
- Salary and wages: 54%
- Savings: 49%
- Insurance (for example, life, health, and 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%
How AI tools performed
Around 1 in 10 credit card holders already use AI tools for financial advice on topics including budgeting, investing, and insurance. Zable tested four major AI platforms, Gemini, Grok, ChatGPT, and Claude, by posing common personal finance questions relevant to UK consumers.
The results showed consistent shortcomings, with most tools defaulting to US-focused advice. This included references to 401(k)s, Federal Deposit Insurance Corporation insurance, and American savings guidance that does not apply in the UK. Claude performed best with six passes, though some responses contained out-of-date UK information. Grok failed all nine questions tested. ChatGPT achieved two passes, and Gemini three.
Many fail to check risks before acting
Over two-thirds (68%) of Brits do not check the risks involved before acting on financial advice. Only 24% would verify a financial professional’s credentials, and just 22% would investigate potential sponsorships, commissions, or conflicts of interest. This lack of scrutiny is particularly concerning with the rise of online finfluencers on platforms such as TikTok, where complex topics are often simplified.
Poor advice already causing losses
Poor advice is already leading to financial losses. Nearly a third (29%) of credit card holders reported losing money due to bad advice relating to credit cards, with 21%, nearly 7.5 million people, losing £100 or more in the past 12 months. Some 28% reported losses linked to investing advice.
Mortgage-related advice carried higher stakes, with the most common reported loss range being £500–£1,000. Overall, these issues suggest that poor guidance can quickly escalate into significant costs for consumers.
An existing advice gap
Managing finances has become more challenging with rising living costs and a wide array of advice sources available. The Financial Conduct Authority (FCA) has previously highlighted an advice gap in the UK, noting that only around 9% of adults receive regulated financial advice.
Arielle Rogers-Jenkins, Senior Product Manager (UK Credit Cards) at Zable, said: “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.”
Rogers-Jenkins continued: “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 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.”
Experts recommend cross-checking information with trusted sources such as the FCA, MoneyHelper, or government websites to mitigate risks.