Addressing Financial and Digital Literacy Challenges for Inclusive Finance: insights from Microfinance Institutions and FinTech Organisations

Koefer, Franziska; Bokkens, Amber; Preziuso, Massimo; Ehrenhard, Michel

Abstract

This paper investigates strategies of European microfinance institutions (MFIs) and inclusive FinTech organisations to address financial and digital illiteracy among vulnerable customers. It reveals that both MFIs and FinTech organisations focus on personalised financial education, training and coaching but adopt distinct strategies in their approach.

The study highlights the crucial role of support teams in enhancing literacy and recommends a balance between digitalisation and human interaction, alongside advocating for governmental and EU educational initiatives.

This is the third paper resulting from a research project on “Strengthening Financial Inclusion through Digitalisation” (SFIDE), initiated by EIF’s Research & Market Analysis division. The project is funded by the EIB Institute under the EIB-University Sponsorship Programme (EIBURS). It aims to investigate the potential of technological and financial innovation to increase the efficiency of the inclusive finance sector, through the identification and promotion of best practices.

The EIF Working Papers are designed to make available to a wider readership selected topics and studies in relation to EIF´s business. The Working Papers are edited by the EIF and are typically authored or co-authored by EIF staff or are written in cooperation with EIF.

Citation

Koefer, F., Bokkens, A., Preziuso, M., & Ehrenhard, M. Addressing Financial and Digital Literacy Challenges for Inclusive Finance: insights from Microfinance Institutions and FinTech Organisations

• Deposit Date: Jan 26, 2024
• Series Title: Working Paper
• Series Number: 2024/97
• Publisher URL: https://www.eif.org/news_centre/publications/EIF_Working_Paper_2024_97.htm