The technological revolution in consumption/investment

Over the last 20 years, we have witnessed a series of changes that have transformed the dynamics of our day-to-day lives. We live in a increasingly global world, where news travels with the wind. We are just a click away from the other side of the world. We receive more and more requests that, quickly, enter our home through a simple mobile phone. It is enough to go back 20 years to realize the speed of society’s evolution.

the new economy

The technological “revolution” has an increasing impact on the way we interact with the world. The economy as we knew it ceased to exist. Companies realize that there are more and more ways to communicate with consumers or reach their target market. Space arose for new opportunities which has been occupied by new companies and, on the other hand, new challenges for companies that had consolidated markets and they had to readapt. Due to all these developments, the competition is getting fiercer. The offer of goods and services is much greater, and this gives us more options to choose from. Also read: Pension Funds: Thinking about the future in the present

Evolution presupposes risks

As in everything, evolution and transformation bring good and bad things. It is true that we have access to much more information and that we have many more options to choose from. It is also true that all this technological innovation brings with it some “dangers” that did not exist. The easy access to goods and services, through a click of a cell phone, makes room for the emergence of fraudulent websites and strategies that aim to take advantage of the consumer’s inexperience. Because evolution has been so rapid, the very authorities have a harder time regulating a whole new world These fears are confirmed by the first survey of the digital financial literacy of the Portuguese population, carried out by the Organization for Economic Cooperation and Development (OECD), in a project with the Bank of Portugal, where it was concluded that 39% of internet users have never sought information on the safe use of digital financial services. In this study’s sample, 76% of respondents use the internet, but only 45% shop online and 50% use homebanking or bank apps. Many prefer personal contact/the branch (29%), which demonstrates the insecurity that a part of the population feels in relation to the way in which technology has been implemented.

Understand before consuming/investing

This study presented by Banco de Portugal allowed us to draw some conclusions about the digital literacy level of the Portuguese population in several areas. The first is that there is still a fear of a large percentage of the population in use digital financial services on a regular basis. We all know that homebanking can make our day-to-day life easier, as it is agile, fast and effective. However, lack of knowledge means that a large part of the population continues to opt for the traditional route, for fear of exposing their heritage to unknown risks in some way. appearing” ahead. If we are unable to separate what is real from what is false, we may incur losses. As an example, in this study on digital financial literacy in Portugal, in the case of cryptocurrencies (one of the hot topics in the world of investments), only 55% of respondents answered that they knew they could lose money if they invested in these “assets”. 43% of respondents correctly answered the question whether the State regulates crypto-assets and 40% answered correctly the question that questioned whether crypto-assets such as bitcoin or ethereum have the same legal tender status as banknotes and coins. If we restrict these questions to the universe of respondents who invest in crypto assets, 79% say they are aware that they can lose money. Even so, 21% of people who answered this questionnaire and invest in cryptocurrencies do not know that they can lose money!Read more: Invest in a conscious way

Knowledge as a lever for success

Our increasingly accelerated reality provides us with a huge set of requests on a daily basis that we must know how to manage. With access to so much information, we take more risks, since both fantastic investment or consumption solutions appear to us and, at the same time, stories of (supposed) people who have had enormous success or a magnificent experience when investing or buying a certain product. The best way to be protected against fraudulent schemes is to have more and more knowledge. The more variables we dominate the better. And this issue cannot be resolved individually, but with a collective plan. It is essential to train the population, demystify concepts and draw attention to the risks that may arise. A digital training is keyjust like the financial education. The sooner this topic is placed on the media agenda, in a serious way, the better capacity we will have, as a country, to take advantage of everything that technology can give us. Banco de Portugal understands the importance of this topic and has presented a plan that aims to touch on four key points: recognizing the importance of digital financial literacy and guaranteeing everyone access to quality digital financial training; ensure that access to and use of digital financial services is based on adequate information and knowledge; promote safe use of digital financial services; and improve the effectiveness of digital financial education initiatives using evidence, assessment and coordination. No doubt this is a important step for us to have a better quality of life. It would be important for other entities to follow the example of Banco de Portugal and put this issue on the media agenda. It would also be essential for schools to start addressing these issues on a regular basis with the young people who will be the adults of the future. Companies should also hold workshops on these topics to “give” their employees tools that will be very useful throughout their lives. Ultimately, the starting point is given by Banco de Portugal. We therefore intend to improve the digital financial literacy index of the Portuguese population, which is currently at 58 (on a scale of 100). We all believe that a population with better digital financial literacy will have more and better tools to be able to live your day-to-daybeing able to take advantage of the opportunities that arise and more attention and perception of the risks it incurs.Read more: Podcast: How is the financial literacy of Portuguese companies? Passionate about sport and economics, he was a professional football player, having played for clubs such as SL Benfica, Estoril, among others. He reconciled his sports career with his academic career, finishing his degree in Economics at the Faculty of Economics of Universidade Nova de Lisboa (NOVA SBE). He remains connected to his two professional passions, performing the role of Financial Advisor and collaborating as a sports analyst at CNN Portugal. He was a resident commentator on JE’s Jogo Económico program and Chairman of the Supervisory Board of the Portuguese Footgolf Federation. (FPFG). He regularly participates in Financial Literacy events. The information contained in the article is not binding and does not invalidate the full reading of documents that support the matter in question.