A new report by digital advice provider Ignition has outlined how financial services businesses can take advantage of technology to drive social responsibility initiatives.
Ignition Asia-Pacific chief executive Craig Keary said that the financial services industry can play an important role in reducing poverty, improving wellbeing, promoting a sustainable economy and reducing financial inequality as part of the UN’s Sustainable Development Goals.
The utilisation of technology such as digital advice to support these goals had not yet been fully explored according to Mr Keary.
“Better use of technology can more easily and cost-effectively provide those at risk with the information, context, or understanding to develop a basic financial strategy that can improve their financial position and reduce overall poverty levels,” he said.
Data from the UN highlighted by Ignition suggests that between 119 and 124 million people have been pushed into poverty due to the COVID-19 pandemic.
Women retiring in poverty is also a trend that has been identified globally and in Australia, where women retire with 44 per cent less savings than men and 39 per cent of single women retire into poverty.
“Financial advice has a vital role to play in helping people make sound financial decisions,” said Mr Keary.
“Raising financial literacy levels can help individuals create more prosperous futures, and institutions can help by using technology, such as digital advice, AI or open banking, to provide greater access to proactive financial education, calculators and financial health-check tools.
“These tools are essential to help people achieve a more stable and secure financial future.”
Mr Keary explained that the COVID-19 pandemic had accelerated the trend of consumers pressuring shareholders and boards to improve their social responsibility, forcing businesses to demonstrate that they are responding to these issues.
“We have reached a moment in history where we should all be operating at a level where we collaborate to solve big sustainable goals and leverage technology to help us do it,” he said.
