Financial technologies and children's well-being

Project overview | Reports | Related insights | Advisory group   

Technology has revolutionized every facet of modern life, including how we interact with the financial world. Recognizing the crucial role finance plays in our lives, innovators have adopted various approaches to leverage technology in this domain. For instance, emerging technologies like Web 3.0 are being applied to finance, giving rise to cryptocurrencies, NFTs, and central bank digital currencies. This rapid evolution of financial technologies (FinTech) presents both significant opportunities and potential risks for children and young people. On the one hand, these technologies can help promote children's financial inclusion, facilitate access to essential services like healthcare and when coupled with education technology (EdTech), can empower children to develop prudent money management habits and financial literacy from a young age. However, the FinTech landscape also presents significant safeguard challenges concerning data privacy, exploitation, fraud and digital exclusion.

As children's interaction with FinTech solutions grows, it is imperative to ensure these technologies are designed and deployed in a way that advocates for their rights and defends their interests. Therefore, UNICEF is proactively engaging in a series of research activities and consultations to generate forward-looking insights, guiding principles and actionable standards for stakeholders, industry participants and policymakers. By promoting collaboration and characterizing the latest technological advancements, we seek to establish a robust framework that both protects children and empowers them as users, as they navigate the complexities of the digital financial landscape.