Training vs. informal financial services for the promotion of financial literacy and inclusion in Uganda

2021 ◽  
Vol 32 (1) ◽  
pp. 107-122
Author(s):  
Colin Agabalinda ◽  
William F. Steel
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Financial Training ◽  
Strong Association ◽  
Financial Education ◽  
Sample Survey ◽  
Formal Training ◽  
Service Users ◽  
Cross Sectional ◽  
Complementary Role

Financial education aims to promote financial inclusion by increasing understanding and use of formal financial services. Despite such training, participation in informal financial practices remains high relative to formal ones in countries like Uganda. A cross-sectional sample survey of economically active urban financial service users is used to test whether financial education through formal training is associated with financial literacy (FL) and FL is associated with increased use of financial services, especially formal ones. The findings indicate that formal financial training is significantly associated with FL, and that higher FL is associated with higher use of both formal and informal financial services. The unexpectedly strong association of the use of informal financial services with financial literacy suggests that informal financial services may have a more complementary role than a simple model of financial formalization would imply. The study suggests that promoting informal financial services may be more efficient in raising financial literacy and inclusion than financial training.

scholarly journals ПІДВИЩЕННЯ РІВНЯ ФІНАНСОВОЇ ГРАМОТНОСТІ ТА ФІНАНСОВОЇ ОСВІТИ — ВИКЛИК СУЧАСНОСТІ

2019 ◽  
Vol 13 ◽  
pp. 429-438
Author(s):  
Т. А. Латковська
Keyword(s):  
Financial Institutions ◽  
Financial Literacy ◽  
Financial Services ◽  
Financial Education ◽  
General Information ◽  
Financial Knowledge ◽  
System Protection

У статті розглядаються питання фінансової грамотності та фінансової освіти, які на сьогоднішній день є актуальними та необхідними. Доводиться, що недостатнє володіння основами фінансових знань і загальною інформацією громадян про свої права та обов'яз­ки викликає недовіру до фінансових установ, небажання використовувати їх як інстру­мент забезпечення збереження заощаджень та підвищення рівня добробуту. Робиться висновок про потребу системного захисту фінансових прав та законних інтересів широ­ких верств населення, створення умов для підвищення фінансової грамотності та фінан­сової освіти, створення механізмів досудового вирішення конфліктів між споживачами фінансових послуг та фінансовими інститутами.   The questions of financial literacy and financial education, being to date actual and necessary, are examined in the article. Proved, that the insufficient possessing bases of financial knowledge and general information of citizens about the rights and duties is caused mistrust to financial institutions, unwillingness to use them as an instrument of providing of maintenance of economies and increase of level of welfare. Drawn conclusion about the necessity of system protection of financial rights and legal interests of wide layers of population, in conditioning for the increase of financial literacy and financial education, in creation of mechanisms of pre-trial decision of conflicts between the consumers of financial services and financial institutes.

scholarly journals Financial Education Renaissance in Japan and the Role of CCFIS : A Policy Commentary

2018 ◽  
Vol 3 (No. 2 Oct 2018) ◽  
pp. 29-40 ◽  
Author(s):  
Shinichi Yoshikuni
Keyword(s):  
Interest Rates ◽  
Financial Literacy ◽  
Financial Services ◽  
Local Governments ◽  
Global Financial Crisis ◽  
Age Groups ◽  
Financial Education ◽  
Financial Fraud ◽  
Knowledge And Skills ◽  
Negative Interest Rates

Financial education became a global agenda after the global financial crisis, and is one of the important elements of the SDGs. In Japan, although we have established a comprehensive system of financial education, the level of financial literacy is not high enough in comparison to other advanced economies. Rapid aging of the society and the increase in financial fraud demonstrate stronger need for enhancing the financial literacy of general public. The Central Council for Financial Services Information responded by publishing the Financial Literacy Map which describes the necessary knowledge and skills regarding money and finance, targeting at different age groups. We also conducted the Financial Literacy Survey, the result of which was widely reported by mass media. Based on the aforementioned products of our work, the Council is conducting various seminars, and publishing materials aimed at protecting consumers from financial fraud by enhancing their financial literacy and at providing necessary knowledge and skills to cope with the era of the 100-year life. In this connection, we are faced with the issue of how to enhance the financial literacy of teachers in times of rapid financial innovation, as well as in the unprecedented financial environment, such as the zero/negative interest rates. In particular, FinTech could have the effect of causing reverse literacy gap between teachers and students. In order to deal with such challenges, the Council is collaborating with relevant public and/or private institutions, e.g., the Financial Services Agency, local governments, representatives of financial institutions, to revive the spirit of Meiji era, when prominent figures stressed the importance of money in life. We should aim at “financial education renaissance” in Japan.

scholarly journals Drivers of Savings Account Ownership Status: A Cross-Sectional Analysis from Ghana

2019 ◽  
Vol 10 (1(S)) ◽  
pp. 51-60
Author(s):  
Augustine Kwadwo Yeboah
Keyword(s):  
Financial Services ◽  
Investment Decision ◽  
Financial Education ◽  
Small Scale ◽  
Probit Regression ◽  
Multiple Sources ◽  
Cross Sectional ◽  
National Board ◽  
Major Market ◽  
Ownership Status

In view of the evidence that poor savings can inhibit investment decision by borrowers of surplus funds, and that countries with well-established and efficiently utilised financial services have considerably less poverty, the study examines factors influence saving account ownership in Ghana using econometric approach. We used empirical evidence with data sourced from informal market traders in selected major market centres in Ghana. Using probit regression analysis, the results suggest that financial educations, number of income-generating ventures engaged in by the market trader are major predictors of savings account ownership status. Other predictors include demographic characteristics such as gender, age, marital status and number of dependents. It is, therefore, recommended that banks and financial institutions should intensify financial education strategies to boost savings mobilization. Government’s policy intervention should be directed towards informal sector enterprise development to the crowd in revenue in order to motivate decisions to save. Also, the National Board for Small Scale and informal Businesses in Ghana should intensify education on how to sustain diverse income generation ventures to fetch income from multiple sources in order to encourage behavioural intentions to save.

scholarly journals Poverty Alleviation Fund in Financial Inclusions of Nepal

2019 ◽  
Vol 2 (2) ◽  
pp. 90-98
Author(s):  
Nahakul K.C.
Keyword(s):  
New Product Development ◽  
Financial Literacy ◽  
Financial Services ◽  
Poverty Alleviation ◽  
Secondary Data ◽  
Holistic Approach ◽  
Financial Education ◽  
Financial Inclusion ◽  
Services Research ◽  
Government Organizations

This research was an attempt to take a deeper look at people’s experience of existing financial services and their providers. In addition, it aimed to identify definitive indicators that would help to create a roadmap for the delivery of effective financial services in Nepal. The study emphasized that ensuring financial inclusion is an arduous task and requires a holistic approach encompassing strategies for awareness raising, financial education, technical advice on different dimensions of money management, debt counseling, saving mobilization, provision of affordable credit services, research and development. In order to promote financial inclusion, there is a need to develop and apply specific strategies to expand the outreach of their services using combinations of lending methodologies, market led approaches to new product development, fostering linkages with local communities and promoting the use of technologies. This paper is basically descriptive and analytical in nature and based on a number of policy models and provisions formulated in recent years for promoting financial inclusion in Nepal. Secondary data is used, drawn primarily from, Poverty Alleviation Fund, Department of Co-operatives and different departments. Micro finance institutions should give equal priority for non-financial services such as financial literacy and provision of entrepreneurship skills through government and non-government organizations that ultimately helps to utilize micro-credit into productive sectors.

Some Aspects about Financial Knowledge of Undergraduate Students

2013 ◽  
Vol 2 (4) ◽  
pp. 40-62
Author(s):  
Elena Moreno-García ◽  
Arturo García-Santillán ◽  
Juan Pablo Munguía-Tiburcio
Keyword(s):  
Learning Styles ◽  
Undergraduate Students ◽  
Financial Literacy ◽  
Financial Services ◽  
Financial Management ◽  
Principal Component ◽  
Financial Education ◽  
Financial Knowledge ◽  
Important Indicator ◽  
Financial Issues

The purpose of study is to measure the level of financial literacy of accounting students at the Universidad Veracruzana; campus Mocambo, considering that financial education is the knowledge that people have on financial issues in order to solve everyday problems regarding financial management. The variables analyzed include age, gender, race, socioeconomic status, learning styles and student’s perceptions on financial services, the way they take care of their money and their knowledge of five key financial issues. Three hypotheses were raised, therefore, in order to test H1 we performed a factorial analysis with an extracted principal component; to H1.a the statistical procedure of linear correlation of Pearson r and t test are applied, and to H2 a Z test is performed. Although the theory suggests that the level of higher education gives the student a better understanding of the financial issues, this research however, proves otherwise. In fact, the range of “excellent money management” is below 50%. The findings suggest that there is no a good level of financial literacy in the population studied. This fact is contrary to expectations, because the student who studies public accountant is expected to have financial knowledge in these subjects, all this, in considering the subjects which integrates the curriculum related to the field of finance. Therefore this finding should be an important indicator for the academic authorities of the Universidad Veracruzana for corrective actions in this respect.

scholarly journals Measuring and profiling financial literacy in South Africa

2018 ◽  
Vol 21 (1) ◽  
Author(s):  
Elizabeth L. Nanziri ◽  
Murray Leibbrandt
Keyword(s):  
South Africa ◽  
Financial Literacy ◽  
Financial Services ◽  
Financial Education ◽  
Multivariate Regression Analysis ◽  
Policy Makers ◽  
Financial Decisions ◽  
South Africans ◽  
Financial Behaviour ◽  
Using Data

Background: Microeconomic theories of financial behaviour tend to assume that consumers possess financial skills necessary to undertake related financial decisions. Aim and setting: We investigated this assumption by exploring the distribution of financial literacy among South Africans. Method: In the absence of a standard measure, a financial literacy index was constructed for the country using data collected on attitudes (towards), access to and use of financial services over the period 2005–2009. In a multivariate regression analysis, we used the index to examine the extent to which differences in financial literacy correlate with demographic and economic characteristics. Results: The index revealed substantial variation in financial literacy by age, education, province and race. Overall, demographic characteristics contributed up to 10% of the financial literacy differences among individuals in South Africa. Conclusion: These results can be used to guide policy makers where to place more emphasis in terms of financial education for South Africans.

scholarly journals Financial literacy and the use of financial services in Serbia

2021 ◽  
pp. 105-114
Author(s):  
Slađana Barjaktarović-Rakočević ◽  
Nela Rakić ◽  
Marina Ignjatović ◽  
Milica Stevanović
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Financial Education ◽  
Middle Income ◽  
Financial Decisions ◽  
Financial Decision Making ◽  
Financial Products ◽  
Decision Making Processes ◽  
Financial Decision ◽  
The Government

Financial services industry has always drawn a lot of attention, from possible investors, those who need financing, the government and general public. Globally, financial opportunities are becoming more attractive, but also more complex. The goal of this study is to analyze the use of financial services in Serbia. We argue that financial education and literacy are preconditions for the use of financial opportunities. Research has shown that people in Serbia are not well informed about how to make sound financial decisions. The reasons why people in Serbia do not use financial products requires to a greater extent and services special attention. In order to test the differences between people in terms of how well informed they are and which services they use and why, we conducted a survey. Our results show that people with salaries higher than 100,000 RSD are well informed but not motivated to invest. Individuals with middle income do not have enough trust and think that they are not well informed about different opportunities. Additionally, we found that men are better informed than women. This paper aims to provide an overview of the use of financial services in Serbia in order to improve financial decision-making processes and understand the different financial opportunities.

scholarly journals Issues and Challenges of Financial Inclusion Among Low-Income Earners In Rural Areas of Malaysia

2021 ◽  
Vol 8 (Special Issue) ◽  
pp. 277-299
Author(s):  
Salihah Sharizan ◽  
Nur Harena Redzuan ◽  
Romzie Rosman
Keyword(s):  
Financial Institutions ◽  
Low Income ◽  
Rural Areas ◽  
Financial Literacy ◽  
Financial Services ◽  
Financial Education ◽  
Financial Inclusion ◽  
Primary Data ◽  
Structured Interviews ◽  
Finance Industry

Financial inclusion (FI) appears to be one of the main global agendas as it is an essential way of reducing poverty and increasing the economic growth of a country. FI is the provision of financial services to all segments of society in a more convenient, quality, and affordable way. In this study, the authors analyzed the issues and challenges faced from the two perspectives of the Financial Institutions (FIs) and the rural B40 group concerning the way of pursuing the exclusive of FI. Primary data was collected by conducting semi-structured interviews with four expert bankers from the Financial Institutions (FIs) in Kuala Rompin, Pahang, and two representatives from the B40 customers in the rural areas of Pekan, Pahang, Malaysia. Based on the findings, barriers faced by the supply sides of the FIs include 1) high risk of cost and security, 2) barriers in communication and lack of financial education, and 3) lack of proof documents. The other challenges are 1) competition with the conventional institutions, 2) default risk due to non-payment, and 3) internet connection problem. On the demand side, the issues and challenges found include 1) lack of confidence, 2) lack of proof documents, 3) misuse of capital, and 4) lack of financial literacy. Henceforth, the findings have significant implications for the Islamic banking and finance industry in exploring the current barriers faced in delivering financial inclusion to the lower segment of the society in Malaysia.

Formal credit usage and gender income gap: the case of farmers in Cambodia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vichet Sam
Keyword(s):  
Gender Equity ◽  
Gender Gap ◽  
Financial Literacy ◽  
Financial Services ◽  
Causal Effect ◽  
Financial Education ◽  
Least Square ◽  
Content Type ◽  
Income Gap ◽  
Female Farmers

PurposeThe purpose of this article is to analyze the factors that drive gender income differences among farmers in Cambodia with a focus on the role of formal credit.Design/methodology/approachTo decompose the gender income gap, this article employs the Blinder–Oaxaca decomposition technique, while a two-stage least square (2SLS) regression is also employed to check the causal effect of formal credit usage on earnings.FindingsResults show a positive effect of formal credit on farmers' earnings and the gender gap in formal credit usage is not found. Despite that, formal credit still contributes to the gender earnings gap with a higher return to credit usage for male farmers. This can be due to the difference in the level of education, financial literacy and other dimensions in favor of men, allowing them to use credit more effectively than women.Research limitations/implicationsThe findings underline the importance of boosting general and financial education among female farmers in Cambodia. Meanwhile, the expansion of access to financial services for women must be accompanied by policies addressing gender gaps in other economic and social dimensions, so that women are able to reap the potential benefit of using those financial services.Originality/valueLack of research focuses on the link between the gender gap in the use of financial services and the gender income gap. The significant gender gap in returns to formal credit usage found in this study demonstrates that the benefits of gender equity in access to and usage of financial services also depend on the effects of other indicators that policymakers must be aware of.

FİNANSAL EĞİTİME BAKIŞ

2015 ◽  
Vol 3 (1) ◽  
Author(s):  
Fatih Temizel
Keyword(s):  
United States ◽  
Best Practices ◽  
International Organizations ◽  
Financial Literacy ◽  
Financial Services ◽  
Financial Education ◽  
The United States ◽  
Developing Nations ◽  
Public Authority ◽  
Turkish Case

This study determines the importance of financial education in contemporary societies. A review of various organizations for increasing financial education whose individual and societal importance has been internationally accepted is also offered. Towards this end initiatives undertaken by international organizations and national authorities are examined. Aspects of these initiatives that can be offered as best practices for developing nations are identified. For the Turkish case financial education examples that can be organized under public authority leadership, with NGO participation are collated. Various experiences about measuring and increasing financial literacy are examined. Among these are the implementations in Australia, Japan, England and the United States. It is put forth, in light of international experience, that increasing access to financial education and efficiency of financial services are possible through, informing, education and consulting.

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