Reshaping regulatory governance: leveraging Fintech to enhance financial inclusion for persons living with a mental health condition

Mental health has gained significant attention, especially post-COVID-19, as many face emotional or psychosocial difficulties. Individuals struggling with mental health issues are more likely to encounter challenges in managing finances. Fortunately, technological development in the financial sector, namely Fintech, has facilitated the transformation of modern finance. Research indicates that the Fintech sector significantly enhances financial inclusion in EU countries through regulatory innovation.This paper uses a case study approach focused on Croatia, where the financial needs of persons living with a mental health condition are often overlooked in national health and policy frameworks. By drawing on the experiences of innovation leaders and leveraging the potential of regulatory sandboxes, it proposes an alternative route for catching up with advanced EU Member States. The paper argues for the development of intersectoral networks among stakeholders – financial authorities, private sector innovators, social and health care providers, and NGOs – through an innovation facilitator model to enhance regulatory governance and promote financial inclusion.The study offers specific policy recommendations for improving financial inclusion for persons living with a mental health condition in Croatia, advocating for supportive regulatory frameworks and participatory actions. Ultimately, it calls for an economic regulatory framework that recognizes vulnerable groups and fosters a more inclusive approach.