Worsening income inequality can lead to weaker macroeconomic outcomes and financial instability.17 It is more difficult for people with low incomes to weather economic shocks. If we see an increasing proportion of people at the lower end of the income distribution, recessions and other negative events could result in more financial stress.
Yet, we must ensure that development does not lead to digital exclusion. The key is to make the services easily usable and widely accessible. And in the brave new digital world, we must pay particular attention to financial literacy. One practical example is instant payments.