83% of Brits seek financial advice from unregulated sources

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.

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New research from Zable, surveying 2,000 UK credit card holders, has revealed that the vast majority of UK consumers are now seeking financial guidance from non-regulated sources, with many failing to properly verify the information they receive before acting on it.

We also conducted our own assessment of the reliability of popular AI platforms when it comes to financial advice. Four major AI tools were assessed on the accuracy and relevance of the guidance they provided to UK consumers across a range of personal finance topics. 

The majority of Brits (83%) are turning to unregulated sources of information for financial advice 

More than four in five (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.

Financial Area	% Seeking Unregulated Advice
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 v 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.

One in 10 are turning to AI for financial advice, but their reliability for UK consumers is questionable.

With around one 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.

Over two-thirds won’t check the risks involved before acting on financial advice.

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.

Shockingly, 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.

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. 

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.

“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.”

Arielle Rogers-Jenkins, Senior Product Manager (UK Credit Cards) at Zable