Post by Bank for International Settlements – BIS

Digital innovation is enhancing households’ access to financial services. In this way, technology can help individuals to better manage day-to-day finances, build resilience to shocks and have greater confidence in their future. However, it also presents new vulnerabilities: a global surge in digital scams and fraud, increased risks of over-indebtedness for some borrowers, and the use of ill-suited financial and investment products. However, it also presents new vulnerabilities: a global surge in digital scams and fraud, greater over-indebtedness of some borrowers and use of ill-suited investment products. In the latest FSI Brief, Jon Frost, Jermy Prenio, Vatsala Shreeti and David Symington explore both the opportunities and risks of digital innovation for financial health. Important progress is being made to measure financial health outcomes. Aggregate trends in financial health measures are mixed; in some countries, indices are even deteriorating, despite greater uptake of digital technologies. While access to payments and savings products is generally positive, the impact of digital lending on financial health is more ambiguous. The authors highlight the crucial role of financial authorities in strengthening regulatory and supervisory frameworks to mitigate the risks, investing in public infrastructures and services and enabling responsible innovation that supports financial health outcomes for households and individuals. https://bit.ly/4eOgk3O #FinancialStabilityInstitute #unsgsa #financialhealth United Nations Secretary-General's Special Advocate for Financial Health (UNSGSA)