By: Nana
Appiah Acquaye
Her Majesty Queen Máxima has
warned that digital innovation presents both opportunities and risks for
financial health, highlighting concerns over fraud, excessive borrowing and
unsuitable investments as financial authorities and industry stakeholders examine
the impact of digital financial services on people's financial lives.
Queen Máxima made the
remarks in virtual opening comments at a recent workshop organised by the Bank
for International Settlements (BIS) and the Office of the United Nations
Secretary-General's Special Advocate for Financial Health (UNSGSA) in Basel,
Switzerland.
“Digital innovation has been
a double-edged sword for financial health,” she said, pointing to the need to
ensure that technological advances in financial services translate into
meaningful improvements in people's financial well-being.
The two-day workshop brought
together representatives from financial authorities, international
organisations, financial services providers, civil society and academia to
examine how digital innovation can improve financial health while addressing
emerging risks.
An opening fireside
discussion featured Jean-Paul Servais, Chair of the Board of the International
Organization of Securities Commissions (IOSCO), and Sophie Sirtaine of the
World Bank Group. The discussion was moderated by David Symington, Senior
Advisor at the Office of the UNSGSA.
The participants explored
financial health amid rapid digital change and the importance of partnerships
in ensuring that innovation delivers positive outcomes for individuals and
households.
The discussions emphasised
that success in digital financial services should extend beyond increasing
access to and use of financial products. Instead, financial health should be
measured by whether people are better able to manage their daily finances, withstand
financial shocks, pursue their goals, and feel confident and in control of
their financial lives.
The workshop was organised
with support from the BIS and its Financial Stability Institute, bringing
together stakeholders to discuss how digital financial innovation can be
aligned with the broader objective of improving people's financial well-being.
