Good financial literacy can help in becoming more financially independent and self-sufficient. In this digital transforming era, how can Fintech enable individuals to be better equipped to reach financial resilience? Let’s dive into the topic more!
Can Fintech make Financial literacy more achievable?
According to the Financial Literacy Statistics conducted by Possible Finance, more than 60% of adults do not understand basic financial concepts. People lack more financial literacy in risk management and insurance, based on Milken Institute’s research.
What is financial literacy and how important is it?
The simplest way to define financial literacy is that individuals have the knowledge of key financial concepts and skills to manage their financial resources effectively.
Financial literacy is becoming ever more important as it becomes more difficult for individuals and families to navigate the ever-changing financial world. Consumers have a bewildering array of options, from knowing how to budget and manage debt to saving and investing for the future. It is essential, but why are most people unaware of it?
- Lack of financial literacy education
Few schools have added financial literacy to their curriculum. Still, we are not taught the basics of how to plan and use our own finances. In addition, there are huge inequalities among people when it comes to their financial health.
- Discrepancies in knowledge and confidence
The Financial Service industry has created a lot of jargon and complexity and does not explain it to consumers due to the cynical mind. They think people do not need to know about the financial service in terms of credit cards, interest rates, etc.
Poor financial literacy not only leads to large amounts of debt and poor financial decisions, but it also puts people in the situation of instability and possibility of bankruptcy.
However, Fintech could be an effective solution to fill this gap!
Here are some examples of Fintech companies assisting people to build their financial muscle to achieve financial resilience.
A tool to help you understand money better and achieve the financial goal you want in life quicker, easier and cheaper.
- Rooster Money
An innovative pocket money app and card for parents to teach their kids money management and build good financial habits by providing educational content.
- Intuit Mint
Recognised as a leading personal finance app, enabling people to meet their budgeting needs in an efficient way.
A financial literacy game-based Metaverse where individuals can play to learn personal financial skills and earn crypto assets.
Does Fintech really make Financial literacy more achievable?
The answer is absolutely YES!
Fintech can facilitate the penetration of financial literacy in this rapidly growing era. Also, financial literacy has become critical in recent years, especially for the Gen Z, who dominate the Fintech blue ocean market.