Addressing a critical need
The increased role and complexity of financial markets and their products in countries at all development stages has reinforced the need to improve the capacity of consumers to effectively access and manage interactions with these services, especially in low and middle income countries where financial inclusion is poor and educational attainments are low. To enable consumers in these countries to understand, access, and make better financial decisions regarding bank accounts, credit, savings, insurance, retirements, and an array of other more complex products, development of programs aimed at improving knowledge, skills, attitude and behavior in this area are required.
Despite the nearly universal nature of the need, however, there is not yet a consensus about how to best define the knowledge and skills required for financial capability, how to measure capability levels among different groups, and how to evaluate the effectiveness of programs designed to enhance from knowledge to behavior change. Against this background, the Trust Fund’s main focus will be the development of a conceptual framework and an operational toolkit on methods for (1) measuring levels of financial capability, and (2) evaluating the impact of financial education programs on raising the skills and financial capacity of target groups and inducing positive changes in behavior.