Unveiling the dark side of finfluencers: how perceptions towards financial influencer associated with overconsumption of financial products to shape financial well-being

Purpose This study aims to examine whether the influence of finfluencers genuinely enhances investors' financial well-being (FWB) and is associated with overconsumption of financial products. It investigates how consumers’ perceptions of finfluencer behaviour such as manipulativeness, inauthenticity and non-accountability may undermine informed decision-making through persuasive yet potentially misleading financial advice on social media. Design/methodology/approach Using stressor-strain-outcome (SSO) model and moderation analysis, the study examines the role of perceived finfluencer traits in overconsumption of financial products and FWB of the consumers. A structured survey was conducted with 457 Indian financial consumers who actively follow finfluencers. Findings The findings indicate the positive and significant association of consumers' perceived manipulativeness, inauthenticity and non-accountability of finfluencers on overconsumption of financial products. Moreover, overconsumption mediates the effect of these factors on the FWB of consumers. Additionally, social media literacy (SML) significantly moderates the relationship of perceived manipulativeness and overconsumption but fails to moderate the relationship of the other two variables of perceived inauthenticity and non-accountability on overconsumption. Practical implications This study provides insights into how perceived behavioural traits of financial influencers impact consumer decision-making in the digital finance space. It contributes to influencer marketing theory and consumer financial decision-making approach and suggests more nuanced SML interventions to address different persuasive influencer traits. Originality/value Study offers valuable perspectives into a relatively underexplored domain of marketing strategy by employing the SSO model and empirical analysis in the dynamics of finfluencer marketing, particularly its influence on consumers' financial product purchase decisions and their well-being.