Supporting Aging Populations through Digital Financial Inclusion Policies : Lessons from the Republic of Korea

Overview & Synopsis

Financial inclusion refers to expanding access to and use of financial services among traditionally excluded groups including low-income households, microenterprises, the elderly, and women. Digital financial inclusion helps advance financial inclusion by deploying digital financial services (DFS) to reach financially marginalized and underserved populations with a range of formal financial services suited to their needs. This study aims to examine the efforts of Korea in promoting digital financial inclusion, with a particular focus on digital financial literacy and consumer protection in the context of its aging population. The study assesses both the successes and shortcomings of these initiatives as well as the impacts observed along the way. Through analysis of the Korean approach, it provides practical insights that other countries can adopt to better prepare for demographic shifts, ensuring that elderly populations are not left behind in the process of financial digitalization. Furthermore, this study provides an overview of the principles established by international organizations to ensure fair access to and use of DFS, emphasizing the case of Korea in supporting access for financially vulnerable groups. Specifically, it examines current regulations, policies, and supervisory measures and suggests improvements for enhancing access to financial services for digitally vulnerable populations. Additionally, this study assesses regulations in light of balancing the objectives of sustainable operations of financial institutions with meeting the needs of vulnerable consumers in the digital financial environment. The study is organized as follows: chapter 1 gives introduction. Chapter 2 provides a comprehensive overview of global aging and trends in digital finance, highlighting the differences between developed and emerging economies. Chapter 3 explores the cases of Korea in the context of population aging and highlights efforts to enhance digital financial inclusion for the elderly. Chapter 4 provides lessons and policy implications for other countries.