Leave no one behind — empower customers in a digital world through financial literacy

By Jasmin Ng, Managing Director, Group Consumer Banking Operations, DBS Bank

We are living in unprecedented times — a new world with changes at many fronts, including the way we live as a result of Covid-19.

As our lives adjust to this new normal, I can’t help but feel amazed at how Covid-19 has propelled the change in people’s perspectives and behaviours in being willing to embrace digital. Businesses have also begun to work with new digital platforms, including tech-forward banks such as DBS to leverage technology to adopt digital banking, digital payments, and to pivot to new income streams online in this new virtual and contactless world.

As we progress into availing all these digital financial capabilities in the new virtual ecosystem world, a small group of consumers may be left behind. These would likely include seniors, as well as those who are unbanked, unacquainted or unwilling to adopt new digital tools. Nevertheless, there is still a need to reach out to these customer groups to ensure that they are equipped with right knowledge and tools to keep up with this new world that is constantly evolving.

Financial literacy is defined as the ability to understand and effectively use various financial skills including personal financial management, planning and investing. As part of the financial community, I feel we can play a bigger role to reach out to these groups. We can help improve their financial literacy through the “3Cs” — Content, Connect, Communicate.

Content

Create content on payment apps that can “speak” to customers by leveraging videos rather than product brochures, utilising FAQs to showcase how digital payments work, and providing context with use cases, all in a language they are comfortable with. Through education, we can empower our customers with the knowledge and awareness on how to use digital tools to transact, thereby building greater confidence for them to go digital.

Connect

Connect with them and educate their community groups so that they will feel more secure to tap on resources within their own community network to transact for P2P or C2B payments. Also partner with businesses to provide engaging education and outreach events to raise awareness and share tips on financial management effectiveness to achieve a win-win effect.

Communicate the risks

Create platforms to educate consumers on the risks of digital banking, by keeping them informed on the tactics on scams, or frauds preventions. This will empower them with the knowledge on how to protect themselves and inadvertently build more confidence and controls in using the apps or banking digitally. A good example is DBS’ #BSHARP programme that keeps its consumers constantly updated as part of continuous learning to stay safe and vigilant in conducting online transactions.

There is now a need for greater financial literacy in a digital world. And the financial community can step up and play a more active role to bridge the gap in financial literacy to ensure vulnerable consumers are not left behind.