Research Report - BETTER FINANCE's report, "Enhancing Financial Health and Wealth in the EU," explores strategies to boost retail investor participation in the European Union’s capital markets, which remains limited despite the growing availability of financial tools and services. The report identifies three key pillars—financial education, personalised financial advice, and digital tools—as essential to addressing systemic challenges such as low financial literacy, accessibility barriers, and demographic disparities. By integrating these elements, the report presents a roadmap for fostering greater financial inclusion, resilience, and wealth generation across diverse populations.
Financial education is emphasised as the foundation for informed financial decision-making, equipping individuals with the knowledge and skills to budget, save, and manage credit effectively. However, persistent issues such as knowledge decay and limited outreach to vulnerable populations highlight the need for innovative solutions, including gamified digital tools, to expand access and engagement. Personalised financial advice complements education by translating knowledge into actionable strategies, improving behaviours such as retirement planning and portfolio diversification. To overcome barriers like high costs, limited access, and potential conflicts of interest, the report advocates for regulatory oversight, independent advisory services, and the use of AI-driven platforms.
Digital tools, including gamification and AI-powered applications, further enhance financial literacy and behaviour by offering real-time insights and empowering individuals to manage their financial health. However, the report stresses the importance of addressing the digital divide and embedding safeguards against exploitative practices to ensure equitable benefits.
The report calls for cohesive policy actions at both the EU and national levels. EU-level measures include standardised financial literacy frameworks, fintech innovation incentives, and harmonised advisory standards, while national efforts focus on localised outreach to underserved populations, fiscal incentives for market participation, and support for independent financial tools. By aligning education, advice, and technology, this integrated approach offers a pathway to greater financial resilience, inclusivity, and sustainable wealth creation for households across the EU.
⬇️ Please read the full report below. ⬇️