Financial Sector Seeks to Aid Vulnerable Groups, But Faces Challenges in Balancing Innovation, Privacy and Building Trust
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The majority of us face financial vulnerability at some point. The financial sector aims to provide more support but risks excluding vulnerable groups.
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Technology like open banking provides opportunities but can also enable scammers and exclusion. Regulators balance innovation and risk.
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Many lack financial literacy. Providers want customers to share problems so they can help, but people may not trust them.
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Big data can predict problems early but also further marginalize vulnerable groups. Information sharing aims to help but raises privacy concerns.
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Financial sector seeks closer collaboration with third sector and wants customers to overcome taboos and share problems, so it can assist before crises hit. But building trust remains a challenge.