Fintech has attracted more than $1tn (£760bn) in investment over the past decade, yet almost none of it targets everyday money problems. Most funding has gone into payment systems, complex trading platforms and buy-now-pay-later schemes that make borrowing and speculation easier rather than building financial understanding.
The result is a troubling paradox. US financial literacy fell to an all-time low in the survey run by TIAA and Stanford University's Global Financial Literacy Excellence Centre, with adults answering only 47 per cent of key questions correctly, down from 52 per cent in 2020. A UK survey by the London Foundation for Banking and Finance found only 3 per cent of young people could answer all five of its questions correctly.
The author points to Munny, a small Lancaster-based fintech that uses AI to address people's financial worries and won Best Fintech at the Money Awareness and Inclusion Awards. Its founder, Andy Lang, notes that people often seek help late at night, when anxieties about debt keep them awake. Similarly, Scam Victim Alliance, a not-for-profit from New South Wales, Australia, won the anti-scam campaigns category. Its work matters as scams are estimated to cost $442bn a year.
The author argues that fintech's vast capital could be directed toward education and consumer protection. Such investment would address the needs of ordinary people far more effectively than another swipe-and-spend app.
Source: Financial Times Companies · Summarized by HeadlinesBriefing