The three European Supervisory Authorities (ESAs) have published a joint thematic report on national financial education initiatives on digitalisation.
In the report, the body places a focus around cybersecurity, scams, and fraud. The report outlines good practices that national competent authorities and other public entities can follow when designing and implementing their financial education entities.
It states that digital channels and digital infrastructure has become a prerequisite for consumers to make use of financial services. This trend has only intensified following the Covid-19 pandemic.
With this in mind, the ESAs highlight the fact that a lack of financial literacy and unfamiliarity with digital technologies can increasingly lead to financial vulnerability and exclusion of consumers. Specifically, without appropriate digital financial skills and the ability to ensure their cybersecurity, consumers are more at risk of becoming victims of scams and fraud.
To solve the problem, the ESAs have outlined 12 good practices that can help national competent authorities and other public entities to increase the reach and effectiveness of their financial education initiatives. Through this, it hopes firms can improve consumers’ digital financial literacy.
One of these good practices is to publish a blacklist of fraudulent providers to help digitally literate consumers properly assess the financial risks arising from financial products and services linked to new technologies.
Another good practice is to reach technology-averse consumers through digital and non-digital channels and teach them how to use digital tools to access financial services safely.
The ESAs also urge firms to work closely with teachers to understand their specific education needs and help them develop and test educational material for students.
Firms should also package financial initiatives appropriately to increase their reach. For example, using games which can help consumers get relevant knowledge and gain practical experience.
The members of the ESAs are the European Banking Authority, European Insurance and Occupational Pensions Authority and European Securities and Markets Authority.
Read the full report on good practices here.
Late last year, the EBA published its roadmap outlining its objectives and timeline for delivering mandates and tasks in sustainable finance and ESG risks.
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