Financial Wellness Becomes New Challenge in Digitalisation Era, Observer Says

Economic observer from the University of Indonesia (UI) Heru Sutadi assessed that the biggest challenge for the financial sector today is no longer expanding service digitalisation, but rather building financial wellness or public financial well-being so that digital transformation truly has an impact on economic growth. Heru said the use of digital finance, especially among young people, tends to increase with the ability to adopt digital wallets, QRIS, and digital investments to fulfil lifestyle needs. However, ease of access needs to be encouraged with usage that improves well-being. “The challenge now is no longer encouraging adoption, but ensuring that the use of these services is carried out wisely, safely, and productively so that it truly improves financial wellness,” Heru told ANTARA on Saturday. Heru assessed that the younger generation’s awareness of the importance of investment and financial planning is starting to increase due to wider access to information. According to him, the increasing use of digital financial services does not yet fully reflect the rise in public financial literacy. High digital transactions mostly indicate a change in transaction methods rather than the ability to manage finances healthily. He explained that financial literacy indicators are not only measured by the ability to use digital applications, but also the ability to prepare a budget, save regularly, invest according to risk profiles, and understand the benefits and risks of each financial product. “Many are still trapped in consumerist lifestyles, excessive use of paylater, or investing without understanding the risks. Therefore, financial literacy remains a homework that must continue to be strengthened,” he said. Heru said the more young people who have the ability to manage finances healthily, the greater their contribution to national economic growth. Savings and investments will increase capital formation, digital transactions drive economic efficiency, while healthy access to financing can give birth to more new entrepreneurs. He said banks need to transform by building an ecosystem that not only focuses on providing digital applications, but also encourages customers to manage their finances better. This effort can be carried out through the provision of financial planning features, savings targets, gradual investment, and integrated financial management reminders within digital services. In addition, collaboration with universities, communities, and various digital platforms is considered more effective for improving the financial literacy of the younger generation compared to relying solely on promotions or temporary incentives.