The news: UBS has issued a warning that there is a 93% chance of a US recession this year, per Moneywise. The prediction is based on data such as personal incomes, consumption, industrial production, and employment rates.

How we got here: Moneywise referenced the “dismal” August jobs report that fell far short of economists’ predictions, with only 22,000 jobs added and a rise in unemployment to 4.3%. Unemployed workers now outnumber job openings for the first time since 2021.

And the Federal Reserve decided to cut interest rates by 0.25 points on September 17, citing poor jobs numbers, per CNBC.

Consumers are showing signs of strain too: A recent Bank of America report found that the number of employees seeking advice from their employers on navigating short-term financial situations has doubled compared to two years ago. Persistent inflation and higher costs of living are major drivers.

Why this matters for banks: When consumers feel stressed, they’re more likely to turn to advice that promises to fix their problems quickly. But much advice like this on social media is misleading—or downright dangerous financially. 

Financial institutions (FIs) are well positioned to combat misinformation and share more trustworthy advice via social media on navigating economic challenges. Advice could center around specific products. For example, certificates of deposit offer a safe way to grow money and earn more interest than many savings accounts.

Our take: Partnering with a finfluencer can help FIs reach target audiences and spread more personalized advice during this time. This approach shifts a purely transactional customer relationship into one built on trust, which is invaluable amid economic uncertainty.