The affordability paradox: What the data misses

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The digital transformation of European micro-businesses

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Building trust in the age of artificial intelligence

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Financial inclusion efforts have historically focused on expanding access. But access only is not enough. As consumers and small businesses face ongoing financial volatility, the next frontier is how to find ways to enable better decision-making through timely, personalized guidance. With open finance making consumer-permissioned financial data more visible, and artificial intelligence (AI) making that data more bespoke and useful, financial service providers can deliver personalized support in the moments when consumers and small businesses need it the most. Our hope is that these innovations can put consumers on the path to financial health, ensuring they can participate in in the digital economy with confidence and protection, so they can build stability, resilience, and opportunity.Approximately <a href="https://www.federalreserve.gov/publications/files/2023-report-economic-well-being-us-households-202405.pdf" rel="noopener noreferrer" target="_blank">94% of U.S. adults have a bank account</a>, reflecting significant progress in financial inclusion over the past decade. At the same time, digital adoption has reshaped how people engage with financial systems: <a href="https://www.aba.com/about-us/press-room/press-releases/national-survey-preferred-banking-methods" rel="noopener noreferrer" target="_blank">more than three-quarters</a> of American consumers now primarily manage their accounts through digital channels. Expanded access and connectivity marks progress but also raises a key question: are these tools helping people navigate the financial decisions they face daily?Though consumers are more connected to financial tools, platforms, and services than ever before, this progress has not translated into consistent financial outcomes. Financial resilience remains a systemic challenge. Federal Reserve data shows that <a href="https://www.federalreserve.gov/publications/2025-economic-well-being-of-us-households-in-2024-executive-summary.htm" rel="noopener noreferrer" target="_blank">nearly four in ten</a> U.S. adults would not be able to cover a $400 emergency expense using cash or its equivalent, underscoring the extent to which many households remain financially vulnerable to even modest shocks.Small businesses face similar pressures. <a href="https://www.smallfirmdiaries.org/post/early-findings-from-the-road-what-we-re-seeing-so-far-in-the-sfd-usa-data" rel="noopener noreferrer" target="_blank">Early findings</a> from New York University’s Small Firm Diaries study show that many small businesses already have access to credit—nearly three-fourths of those in the study carry it—yet still struggle to manage financial shocks. In moments of strain, owners often skip their own pay, dip into personal funds, or cut labor, absorbing the volatility themselves. Like households, access alone does not translate into resilience.

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How might technology be harnessed to drive stronger financial health outcomes?The next evolution of financial services must move beyond access to better outcomes for consumers, by using data, AI, and inclusive technology to deliver timely, personalized guidance that helps consumers and small businesses navigate volatility and make better financial decisions.Enabling Better Financial Decisions Through PersonalizationAt the Mastercard Center for Inclusive Growth, we see the next phase of financial health as a shift from access to outcomes. If the challenge is helping people navigate financial decisions under volatility, then financial health solutions must become more personalized.Financial decisions are shaped by short-term factors like cash flow, liquidity, and risk, as well as longer-term goals like saving, investing, business growth, and planning for the future. Working families and entrepreneurs must also navigate challenges from unexpected expenses to income disruptions, often with few, if any, buffers. Yet, most financial tools still rely on static approaches, from account dashboards and budgeting apps to periodic financial education. These tools are helpful but provide limited personalized support when decisions are being made.Personalization is not just about better content or messaging. It means understanding someone’s financial situation to offer the most useful prompt, reminder or option when it is needed. AI can be transformative in that regard, helping translate complex financial signals into support that is specific, relevant and scalable.Open finance makes this possible by allowing consumers and small businesses to securely share their financial data with trusted providers to access more personalized experiences. As people use more financial tools, open finance can provide a connected, consumer-permissioned view across accounts, while AI can turn that information into specific and useful guidance. Together, these capabilities can help deliver more responsive, proactive and personalized solutions, even as data access and infrastructure continue to evolve.

Personalization in ActionWe are exploring how open finance, AI, and personalization can strengthen financial solutions in practice. This includes partnering to innovate and build evidence for how personalized, technology-enabled support can improve financial outcomes for individuals and small businesses.For example, <a href="https://www.mastercardstrive.org/programs/helping-microentrepreneurs-build-financial-security" rel="noopener noreferrer" target="_blank">we partnered with SaverLife</a> to help households and microentrepreneurs build financial security through a combination of tailored guidance, incentives, and AI-powered financial coaching tools. Through these behavioral incentives, micro-grants, and AI-powered coaching, the program increased participation in savings challenges from 57% to 86%. More than 90% of microentrepreneurs who received personalized support and micro-grants maintained steady savings behavior, highlighting the potential of targeted, technology-enabled interventions to reinforce positive, consistent financial habits.We’re also <a href="https://www.mastercard.com/us/en/news-and-trends/stories/2026/mona-small-business-access-to-capital.html" rel="noopener noreferrer" target="_blank">partnering with Mona </a>&nbsp;to explore a model to scale AI-powered coaching to support small business in their decision-making. Leveraging AI to provide context-specific guidance, fintech Mona’s approach helps entrepreneurs navigate cash flow challenges, access capital, and plan for growth. Through this partnership via <a href="https://www.mastercardstrive.org/" rel="noopener noreferrer" target="_blank">Mastercard Strive</a>, Mona aims to deliver financial health coaching to more than 5,000 small businesses and connect over 1,000 to funding opportunities, while generating insight into how AI-enabled solutions can deliver relevant support at scale.&nbsp;Across these partnerships, our goal is to identify how emerging technologies can enable more relevant and personalized decision-making to build financially healthier consumers in real-world settings. As we gain more insights, our aim is to demonstrate how emerging technologies, like open finance and AI, can transform financial services into systems that support households and entrepreneurs in successfully navigating their financial lives in real time, while maintaining trust, security and control over their financial data.Looking AheadThe future of financial health will be shaped by the ability to translate information into action. As individuals and entrepreneurs navigate increasingly complex financial lives, the institutions and solutions that succeed will be those that provide relevant, timely support for people.At its core, this shift is about enabling stronger outcomes and for people to feel more confident in their financial situation and future decisions. Financial solutions that move beyond access to better financial decision-making over time will create the foundation for improved consumer experience, stronger engagement, and trusted, long-term relationships.At the Mastercard Center for Inclusive Growth, we see this as one of the next frontiers of value creation in financial services, with applicability across life stages—from young people making early financial decisions to families and small businesses managing ongoing financial volatility. We will keep testing and learning together with partners—to build the evidence base for what responsible, personalized financial support can look like as we support people on their financial health journey. We are grateful to Hans Frech La Rosa and Emma Martinez Daniel of <a href="https://advanced-hindsight.com/commoncents-lab/" rel="noopener noreferrer" target="_blank">Common Cents Lab</a> for their valuable contributions and thoughtful feedback.

Why the next generation of financial solutions must be built around better decision-making

The Financial Access Initiative at NYU is a research center working at the intersection of financial inclusion, development, and poverty.

Financial Access Initiative at NYU

The Financial Access Initiative at NYU is a research center working at the intersection of financial inclusion, development, and poverty.

The future of financial health is personal