Living standards
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Technological change
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Financial inclusion

Shock absorbers

Innovating to boost financial resilience in Europe

This paper reviews the potential for innovation to address financial resilience problems in France, Germany and the UK, emerging from the Covid-19 crisis. As such, it is a companion report to After Shocks, which provides evidence on the impact of the Covid-19 crisis on households in these countries. This paper sets out a framework of supply and demand to look at innovative approaches to financial resilience. This framework is applied to France, Germany and the UK, and suggestions made as to how innovation could best be supported in future.

We find that digital technologies have significant potential to contribute to improved financial resilience. However, caution should be used, as these approaches are not suitable for all the financial resilience issues present in these countries.
The financial resilience of a huge proportion of households in Europe has been damaged during the Covid-19 crisis, with borrowing increasing and savings used up. Repairing financial resilience will be an important priority in the coming months and years, and new approaches to finance and fintech will be one of the tools to help repair pre-crisis problems, and those created in the past year.