With bank branches closing, financial services moving online, and digital financial literacy lagging, ordinary citizens risk being left behind. “This is a world where money is increasingly invisible and decisions are mediated by apps and AI,” says PETRA ELLUL MERCER, Founder of CAPABLEMIND. “It’s no longer about managing money but empowering people in a digital economy.”
Malta is undergoing a quiet financial shift that has redefined everyday money management. Citizens now navigate invisible transactions, AI-powered advice, and online fraud risks, while questioning the incentives built into the apps and platforms designed to guide them.
“Digital financial literacy is no longer optional. It’s a civic skill, and there is a collective duty to ensure it,” Ellul Mercer asserts.
A behavioural economist and financial capability consultant, Petra recently led this month’s second edition of the national financial literacy conference with JA Malta, themed Digital Finance Frontiers – Empowerment Through Technology and Education.
“Ours is a call to action. Financial literacy in this digital age must become a national priority by giving educators, banks, and policymakers the tools to deliver measurable impact,” she adds.
According to the OECD’s 2023 Financial Literacy Report, Malta’s youth lag behind the EU average in understanding digital payments, spotting online scams, and comparing products online. For Ellul Mercer, this is not just a technical gap but “a crisis of trust and empowerment.”
“Bank branches are closing and services are moving online. Those lacking confidence risk being left behind. It’s not about access; it’s about understanding,” she explains.
In schools, Ellul Mercer has championed innovative approaches. Math classes simulate budgeting through mobile apps, while PSCD curricula now include discussions of “buy now, pay later” schemes. Digital literacy lessons explore online advertising, data privacy, and algorithmic biases.
“Students may be fluent with technology, but fluency is not discernment,” she notes. FreeHour Malta’s findings show that less than 25% of Gen Z students can confidently compare digital financial products or recognise biased algorithms—a clear curriculum failure.
A parallel challenge is the rollout of the Digital Euro. The European Central Bank’s plan for a central bank-issued digital currency could streamline government transfers, reduce reliance on costly international payments, and boost financial inclusion.
Yet without public education, Ellul Mercer warns, “it risks becoming an elite tool, usable only by the digitally fluent.”
She advocates multilingual, accessible campaigns to bridge the gap between policy and practice. Only with careful behavioural design, she says, can the Digital Euro fulfil its promise of inclusion.
“Design is never neutral,” she stresses. Interfaces, notifications, and defaults nudge behaviour intentionally or otherwise. Many apps highlight balances and recent transactions while hiding long-term financial goals behind menus.
“Apps should lead with insight: savings progress, projected retirement income, and visualised loan costs. Small tweaks, like norm-based messaging, can profoundly alter behaviour without restricting choice. We need design that empowers, not exploits.”
AI presents both opportunities and challenges. Older generations may struggle with apps, while younger users risk over-reliance on automated advice. Ellul Mercer cites emerging AI tools, such as Khan Academy’s GPT-powered tutor, which can explain compound interest to 12-year-olds in conversational language.
“AI can make financial education more personalised, engaging, and accessible,” she says. “But educators must first be equipped to guide students meaningfully. Giving teachers AI without preparation is like giving someone a calculator without teaching them arithmetic.”
The stakes are not only individual but national. Digital financial capability links directly to wellbeing and economic resilience. OECD data shows that people who understand digital finance report lower stress, better planning, and more confidence in their financial future.
In Malta, where household savings remain low despite manageable debt, this insight is crucial. Financial anxiety affects personal well-being, productivity, spending, and vulnerability to scams, with ripple effects across the economy.
Ellul Mercer also sees broader societal opportunities. Countries like New Zealand and Finland explore “wellbeing budgets,” assessing policies on both financial metrics and social outcomes.
“Malta can embed digital financial capability as a pillar of national wellbeing. It’s not just about money in the bank, but clarity, confidence, and control in a digital-first world,” she suggests.
She envisions a collaborative ecosystem where schools, policymakers, banks, and fintech firms converge to ensure citizens are not only digitally competent but critically literate.
“The promise of digital finance can become a new form of exclusion if people lack the skills to engage safely. But if we get it right, we’re not just teaching money—we’re strengthening civic life itself,” she concludes.
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