Digital innovation is reshaping how individuals and households access and use financial services – and with it, the prospects for financial health. Technology can help people better manage their day-to-day finances, build resilience to shocks, plan for short- and long-term goals, and improve their financial confidence, among many other benefits. However, the same technology that enables better financial health can also create financial problems, for example by exposing users to digital fraud and scams and contributing to greater over-indebtedness among some borrowers.
In a new brief for the Financial Stability Institute, Jon Frost, Jermy Prenio, Vatsala Shreeti and UNSGSA Policy Advisor David Symington explore both the opportunities and risks of digital innovation for people’s financial health. The brief underscores the critical role financial authorities can play in shaping outcomes, including strengthening regulatory and supervisory frameworks to mitigate the risks of digital services, investing in public infrastructure and services, and enabling responsible innovation that supports financial health outcomes for households and individuals.