Fintech is rapidly reshaping how people manage money, but new evidence shows that many consumers still lack the skills required to use digital financial services safely and effectively. According to international datasets, the share of people using digital payments has continued to rise, reaching more than 60 percent in developing economies and nearly universal adoption in OECD countries. Yet at the same time, large segments of the population score below the minimum threshold for digital financial literacy, particularly younger users.
The findings highlight a growing disconnect between access and capability. While mobile banking, budgeting apps and robo-advisors make financial management easier, they also demand a mix of financial knowledge and online safety skills. Analysts note that only a minority of consumers regularly change passwords or understand the risks of using public Wi-Fi for payments. Deepfake-related fraud in the fintech sector surged in 2023, underscoring the escalation of cyberthreats in finance.
Fintech boosts inclusion but introduces new risks
Fintech platforms continue to expand access to financial services, especially for under-served and low-income groups. Tools such as automated investment apps, credit-score dashboards and real-time spending trackers have made financial management more transparent. Personalised learning apps, including those using gamification or AI, are increasingly used to teach financial concepts and safe digital behaviour.
Mobile wallets and digital accounts have also helped millions globally enter the financial system for the first time. This trend has narrowed gender and income gaps in account ownership, according to global data. Yet these advantages come with new vulnerabilities. Frictionless digital payments can lead to overspending, particularly among users with lower digital financial literacy. Weak cybersecurity habits place consumers at risk of phishing, identity theft and social-engineering scams.
Regulators warn that some digital investment platforms operate with uneven oversight, making it harder for consumers to seek redress when things go wrong. The rise of financial influencers on social media adds further complexity, as content quality varies widely and some advice promotes risky or misleading products.
A call for integrated financial and digital education
Experts increasingly argue that financial resilience requires both traditional financial knowledge and digital-safety skills. Teaching consumers how to manage passwords, recognise scams and critically evaluate online content is now essential. Schools, community groups and regulated financial providers can play a key role by offering just-in-time digital-finance education.
Policy recommendations also include strengthening broadband access to reduce digital exclusion, setting higher standards for fintech data protection, and increasing transparency around fees and risks. Collaboration between governments, regulators and fintech firms will be essential to ensure that innovation does not widen inequalities.
Fintech’s expansion shows no sign of slowing. Digital payments are now ubiquitous, but the ability to use them safely remains uneven. Building digital financial literacy at scale will determine whether societies can harness fintech’s benefits while protecting consumers from emerging risks.
Sources: Supporting informed and safe use of digital payments through digital
financial literacy (EN), Financial Literacy Is Never Going To Improve. Leave It To The Bots, GAO-25-107168 Highlights, Highlights of a Forum: Financial Literacy in a Digital Age, How Fintech is Enhancing Financial Literacy in Canada – Remitbee, The Global Findex Database 2025, Fintech Win-Win: How Digital Financial Literacy Drives Stable Growth.