Financial literacy and financial intermediation - African and global context


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Financial literacy and financial intermediation - African and global context

  1. 1. Financial Literacy & Financial IntermediationAfrican & Global Context<br />Presentation by<br />Varghese Thambi, Chief Executive Officer, DTB Uganda<br />
  2. 2. Financial Literacy<br />The understanding basic financial concepts of :<br /> -Money and Income<br /> -Budgeting and Cash Flow Management<br /> -Debt Planning<br /> -Retirement Planning<br /> -Insurance Planning<br /> -Savings & Investments<br />-Capital Market & Securities<br />Ability & discipline to use the information and choose right financial products<br />
  3. 3. Why Financial Illiteracy a Global Issue?<br /><ul><li>Personal finance is not a part of curriculum
  4. 4. Parents and teachers are equally illiterate on financial matters
  5. 5. Comparatively low banking habit
  6. 6. Financial Institutions and Government had not focussed on Financial Literacy in the past
  7. 7. Financial products are getting complicated day by day</li></li></ul><li>Best Practices in the Global Context<br /><ul><li>US Treasury set up Office of Financial Education in 2002
  8. 8. Malaysia commenced consumer education in financial literacy through a 10 year Master Plan in 2001
  9. 9. UK Financial Service Authority launched the Financial Literacy campaign in 2002
  10. 10. Australia launched a National Consumer & Financial Literacy Taskforce in 2004
  11. 11. India undertook a project 100% Financial Inclusion as a part of Financial Literacy Drive recently</li></li></ul><li>Best Practices in the African Context<br /><ul><li>South Africa financial sector earmarked a portion of their profit to Financial Literacy projects since 2003
  12. 12. Kenya & Tanzania are developing Financial Literacy through Financial Sector Deepening Trust(FSDT) since 2005
  13. 13. Ghana has launched the first Financial Literacy Week in 2008, to achieve prosperity through financial security
  14. 14. Uganda : 5-year Financial Market Development Plan set up in 2008 </li></li></ul><li>Financial Intermediaries & Financial Literacy<br /><ul><li>Role of Financial Intermediaries in inculcating Financial literacy in rural areas
  15. 15. Mobile Money transfer solutions & Money Transfer Services
  16. 16. Cross selling opportunities between various Financial Intermediaries such as Banks, Money Transfer Services and Mobile Money Transfer agents</li></li></ul><li>Financial Literacy- Way Forward<br /><ul><li>Inculcate habit of savings among children from school
  17. 17. Develop Banking products suitable for kids and youth
  18. 18. Educate College Students on the risk of using Credit Cards
  19. 19. NGOs, Schools and Banks should join hands to educate the financially illiterate segment of the society</li></li></ul><li>Recommended model for Africa<br /><ul><li>Financial intermediaries to impart financial literacy across the country
  20. 20. Mobile Money Transfer agents, Money Transfer Services and Insurance Companies should serve the last mile customer in rural areas
  21. 21. Banks to set up more number of small branches with 1 teller , ATM and home-banking with ‘no-frill’ accounts
  22. 22. Bring every African under regulated financial segment which would eliminate Money Laundering and other unethical financial practices</li></ul>THANK YOU & MAY GOD BLESS YOU<br />