Digitalisation and innovation - opportunities and risks for financial health

Highlights

• Digital innovation is enhancing access to payments, credit, savings and insurance, and can help people to manage their financial obligations and have greater confidence in their financial future.
• But these benefits are emerging alongside new vulnerabilities: a global surge in scams and fraud, greater overindebtedness among some digital borrowers and the use of ill-suited investment products.
• In line with these competing forces, aggregate trends in financial health are mixed; in some countries, available indices are deteriorating despite greater uptake of digital technologies.
• This highlights the crucial role of financial authorities in enhancing regulatory and supervisory frameworks to mitigate emerging risks, providing public infrastructures and services, and enabling responsible innovation that supports financial health outcomes.

The views expressed in this publication are those of the authors and do not necessarily reflect the views of the BIS, its member central banks or the Basel-based standard-setting bodies.