The COVID-19 pandemic has accelerated digital financial inclusion with increased digital financial services. Several studies found evidence that the availability of digital financial services is associated with higher GDP and lower income inequality. The task is to find the right balance between enabling financial innovation and addressing risks such as insufficient consumer protection, low levels of financial and digital literacy, unequal access to digital infrastructure, money laundering and cyber risks.
The COVID-19 pandemic has further accelerated digital financial inclusion with increased digital financial services. Several studies found evidence that the availability of digital financial services is associated with higher GDP growth and lower income inequality. To sustain the momentum, regulators must keep up with the rapid changes in the fintech landscape. The task is to find the right balance between enabling financial innovation and addressing risks such as insufficient consumer protection, low levels of financial and digital literacy, unequal access to digital infrastructure, money laundering and cyber risks. The report is part of the APEC project FMP 01 2021 – Capacity Building on Digital Financial Inclusion. The objective of the project is to build the capacity of participating APEC member economies to achieve greater financial inclusion by presenting them with information on digital financial inclusion strategies that work, potential risks that may curtail consumer and overall economic welfare, and policy measures to minimize impacts of such risks.
