Financial inclusion as a critical cog for development (Part 2)
Saturday, June 29, 2024 | 120 Views |
Sharing knowledge: Mambure
It is generally acceptable by authorities and scholars that financial literacy, financial innovation, consumer protection and the architecture of the financial system are the among the key levers that drive financial inclusion. These four drivers are briefly discussed in this instalment.
It is important that we understand the meaning of the term financial literacy. The Organisation for Economic Co-operation and Development (OECD) defines financial literacy as “a combination of awareness, knowledge, skill, attitude and behaviour necessary to make sound financial decisions and ultimately achieve individual financial wellbeing”. It is clear that financial literacy goes beyond understanding the financial terms but rather deals with attitudes and how to behave in a financially responsible manner as well.
That sounds like good news. But the report also warns that this may simply be because our digital economy is still young, not because we are safe. As more people shop, bank and pay online, criminals will follow.We Batswana do not need a report to tell us that danger is real. Many of us have heard of or fallen victim to KYC scams. A caller impersonates your bank or mobile money provider. They say they need to “verify” your account. They ask...