FINANCIAL EMPOWERMENT IN THE DIGITAL ECONOMY
|Mohamad Fazli Sabri*|
|Corresponding Author: Mohamad Fazli Sabri, Universiti Putra, Malaysia|
|Revised: 21 September 2020;|
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The world’s economy is now digitally driven. Today, it’s estimated that the Digital Economy is worth USD3 trillion. Digitization of economies creates benefits and efficiencies as digital technologies drive innovation and fuel job opportunities and economic growth. The digital economy also permeates all aspects of society, influencing the way people interact and brings about broad sociological changes. Access to the internet is not a privilege nor a luxury, it is a necessity and survival tool. As such, it triggers new challenges in terms of consumer protection approaches. In the context of advanced digital financial services, financial education and financial consumer protection are the bedrock to ensure the advancement of digital financial services. Specifically, for the vulnerable, regulatory policies would be able to protect them from inappropriate financial products and services that may be a determent to their current financial state. Meanwhile, the usage of the technologies in an inclusive way could provide benefits to their financial state. Financially empowered individuals are informed and skilled; they know where to get help with their financial challenges. This sense of empowerment can build confidence that they can effectively use their financial knowledge, skill, and resources to reach their goals. In a nutshell, this paper is going to discuss the trends, opportunities and challenges in the digital economy. The current paper also intended to highlight the importance of financial literacy to empower consumers in their daily finance activities.
Keywords: Digital economy, Financial literacy, Financial consumer protection.