Baseline survey on financial literacy |13 April 2016

The Central Bank of Seychelles (CBS) and the Financial Services Authority (FSA) have engaged a consultant, Finmark Trust, to conduct a baseline survey on financial literacy in Seychelles.

This project is a component of the country’s Financial Sector Development Implementation Plan.

It is funded by a grant from the Investment Climate Facility to the government of Seychelles.

Financial literacy is a combination of awareness, knowledge, skill, attitude and behaviour necessary to make sound financial decisions and ultimately achieve individual financial wellbeing.

The survey will be undertaken on a sample of 1,500 households and the fieldwork will be conducted as from April 18, 2016.

The aim of the survey is to obtain an initial measure of the level of financial literacy in the country.

This will help the authorities in identifying the needs of the population in relation to financial literacy, the group with the highest needs and the gaps that need to be addressed.

The information from the survey will contribute towards the formulation of a national strategy on financial education that will provide adapted and resource effective solutions to the financial literacy needs of individuals in Seychelles.

There has been an increased focus on financial literacy internationally, with many countries having taken steps to establish the foundations through the conduct of baseline financial literacy surveys.

A higher proportion of the population has access to financial products (e.g. banking, insurance, securities) and financial markets are becoming more sophisticated.

As such, it has become increasingly important to empower consumers by improving their understanding of financial products and by providing more information that will develop their skills and confidence to make informed decisions, thereby improving their financial wellbeing.

Financial literacy also complements efforts to enhance consumer protection and access to financial services and supports financial stability.

Additionally, the survey will provide the opportunity to monitor progress over time and identify the effectiveness of policy actions.

CBS and FSA stress on the importance of the exercise and the valued contribution of each selected household to the survey.

The authorities encourage the households to co-operate with the fieldworkers in taking part and providing accurate information that will ascertain the success of the exercise.