The advent of technology and digital services is radically transforming the habits of people and especially of the younger generations. Technology is increasingly part of everyday life (travel, dining, mobility, entertainment, etc.) and has started to have a strong impact on the financial sector, just think of smartphone payments, online shopping and the proliferation of investment apps.
In this context, the acquisition of basic financial and economic awareness is indispensable for the entire country to prosper and innovate. Especially in a historical period characterised by unexpected events with long-term negative effects on society, the economy and people's well-being.
The fintech sector, thanks to its potential to bring consumers closer to the world of finance with simplicity and security, plays a key role in financial literacy. Leading the cultural revolution in the approach to money and savings is a responsibility we must take on as an industry, working together and working as a system.
The population groups most at risk
According to an OECD study, in 2020, around half of EU citizens lacked a thorough understanding of basic financial concepts. This knowledge gap is most significant among the elderly, young people and low-income groups such as women. This situation calls for a series of coordinated actions, starting at the legislative level but also involving all stakeholders and moving towards greater financial education.
The ex ante evaluation document of the State Accounting Department and the Ministry of the Treasury with reference to the NRP speaks clearly: the non-participation rate is 22.7 per cent for women (41 per cent in the South) against 16 per cent for men. The presence of pre-school children makes it more difficult for mothers to enter the labour market: the relative employment indicator for mothers is decreasing by 0.9 percentage points compared to 2019. In fact, in 2021, the percentage of women between 25 and 49 years old with a child under the age of 6 in employment is only 54%. A large gender overall earnings gap persists, which in Italy stands at 43%, compared to an average value for European Union (EU-27) countries of 36.7%. The average pension received by women is also lower than that of men due to a fragmented working career.
We know that women take on most of the family care work: made equal 100, 60.9% goes to women in the North, and 69.7% in the South. Only 21.3% of fathers take parental leave, and there is a general lack of services available to families to meet their early childhood care and education needs.
The general backwardness of the country
Women, however, are not the only ones lagging behind. Italy ranks 63rd in the world in financial literacy, and only 37% of adults possess the skills deemed adequate to invest. And perhaps it is no coincidence that the savings sitting idle in current accounts - which inflation is slowly eroding - amount to over EUR 2 trillion, well over the value of current GDP.
A study carried out by the research company Doxa together with the Edufin Committee indicates the close correlation between level of knowledge and financial fragility. Among those who do not know the basics of savings and investments, the share of those who do not make it to the end of the month stands at 59%.
Digitalisation and financial education go hand in hand
It is a fact that digitalisation and financial education are positively correlated with economic growth and provide easier access to wealth distribution mechanisms. People able to use digital devices benefit from lower prices and a wider choice of products tailored to their needs.
The problem is that digitalisation and the level of financial literacy do not yet seem to go hand in hand. On the contrary, the ease and speed with which bad financial choices can be made does not help to develop critical awareness of the risks involved. The point is not to oppose change but to accompany it at a sustainable and inclusive speed.
For example, thanks to apps that allow real-time monitoring of movements, set spending limits (with alerts for the most 'risky' ones such as shopping and restaurants), remind you of deadlines, allow you to set savings goals (perhaps allowing you to share them with friends and family) or the function to round up digital payments made and set aside the rest in a sort of piggy bank automatically managed by your smartphone.
For aspiring investors, apps that allow them to quickly and easily monitor their investments directly from their smartphones are growing by leaps and bounds. The path taken by these new market entrants is to make intuitive and simple operations that until recently could only be done at the counter of one's bank or by talking to a financial advisor.
Obviously, the lack of 'filters' must be balanced by a greater awareness of what one is doing, hence greater financial education. Fortunately, there are many initiatives in this regard - for example, Capitale Donna, the independent information campaign to promote women's access to investments by Scai Comunicazione and Equity Crowdfunding News, with the support of public and private organisations of which we are also a part.
In conclusion, financial education must therefore seize the digital opportunity and benefit from the use of technological tools in order to make it easier to reach potential recipients, proposing tools that are closer to the needs of broader segments of the population and the new generations.