The news: The Court of Appeals for the District of Columbia Circuit upheld the US ban on TikTok, failing a TikTok sale. The ban is set to take effect on January 19.
TikTok’s owner, ByteDance, must sell it to a US company within a month, or it’ll be removed from US app stores.
What this means for banks: TikTok has been a popular place for brands to reach Gen Zers. Without it, they’ll need to find a new way to get in front of younger consumers.
The platform has served as a major source of financial misinformation as well as a place where banks can build their reputations as trusted partners in Gen Zers’ financial journeys.
The economic effects: Many Gen Zers make money from social media. As their side-hustle income may be in jeopardy, they’ll need help adjusting their budgets and saving habits.
Our take: Financial institutions (FIs) already on TikTok should stay there, and those with finfluencer partnerships should maintain them. But FIs should review contracts with finfluencers to ensure both parties understand the implications of a potential ban.
If the ban goes into effect, FIs should monitor where TikTok’s aggrieved users go for financial content. It is important that FIs have a plan to keep building relationships in the new space, too.
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