Financial inclusion and financial literacy go hand in hand. Financial education about household economy is critical in ensuring households do not get overly indebted and fall into a negative debt behavior. While financial products have become increasingly sophisticated in the last decade, they also are too complex for most people whose knowledge of finances has not kept pace. This financial illiteracy correlates with financial distress. People make choices without thinking through the implications fully, due to lack of knowledge or interest or both.

Several fintech companies have started building technology solutions that allow customers to be better informed and educated about the financial decisions.