Generative AI for Individuals’ Financial Well-being and Debt Rehabilitation

Nina Toivonen (), Marika Salo-Lahti (), Mikko Ranta () and Helena Haapio ()
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Nina Toivonen: University of Helsinki
Marika Salo-Lahti: University of Vaasa, School of Accounting and Finance, Business Law
Mikko Ranta: University of Vaasa, School of Accounting and Finance, Accounting
Helena Haapio: University of Vaasa, School of Accounting and Finance, Business Law

A chapter in Generative AI, Contracts, Law and Design, 2025, pp 127-147 from Springer

Abstract: Abstract TechnologyTechnology plays a significant role in today’s over-indebtedness. However, its potential to help people overcome debt problems and maintain good financial healthFinancial health remains largely untapped. The need for alternative, personalized solutions to over-indebtedness is becoming increasingly pressing worldwide, especially since many people struggling with debt do not have access to judicial debt rehabilitationDebt rehabilitation programs. This chapter explores how generative AIGenerative AI (GenAI) could support individuals in financial distress. Using the behavioral COM-B modelCOM-B model as a framework for designing effective interventions, we discuss how AI could help improve individuals’ capabilities, opportunities, and motivation to achieve financial well-beingFinancial well-being, and what solutions already exist for these purposes. Inspired by fitness applications that offer personalized advice, we used OpenAI’s GPT Builder to create “Finance FriendFinance friend,” a simple prototype of a financial adviser, and explored its potential as a personalized financialPersonalized financial coaching coach. While the tool shows great promise for the future of financial coaching, we also emphasize the need for trustworthy technologyTechnology and regulatory frameworks that promote responsible design, implementation, and use of AI in the context of debt rehabilitationDebt rehabilitation.

Keywords: Access to justice; Artificial intelligence; COM-B model; Debt rehabilitation; Financial health; Fintech (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:perchp:978-981-95-2058-9_8

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DOI: 10.1007/978-981-95-2058-9_8

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