The central Bank Chief Professor Benno Ndulu launched a programme aimed at improving people’s acumen of money matters in Dar es Salaam yesterday.The programme known as the National Financial Inclusion Framework (NFIF),2016-2020 comprises strategies to tackle supply side, demand side and structural obstacles in financial inclusion.
Prof Ndulu said the poor making up 28.2 per cent of the households were more vulnerable to exclusion due low unstable incomes, low confidence and self-exclusion.
He was presenting a paper at the Financial Education and Consumer Protection Conference and said developments in the financial market created challenges for users particularly the poor and less educated.
“Financial services providers and regulators have major roles to play in complementing the efforts of improving financial capabilities of individuals by addressing information asymmetry with the users,” he said.
He said providers have a role in ensuring that the product development and delivery goes hand in hand with the public education on features of the services, how to use them and complete cost disclosure.
He said that a lot of education on new complex products has to be embedded in their delivery while the regulator in turn must ensure full disclosure of information for informed choice and fair adjudication of disputes.
He said the financial capacity baseline study have guided preparation of the framework and has informed its components including consumer financial education strategy, coordination and implementation structures as well as monitoring and evaluation framework.
He said the framework will target the youth by strengthening the base of financial literacy by embedding financial education in school curricula and via special progamme to target dropouts.
“More generally, enhancement of functional literacy and mathematical skills has been identical to be particularly helpful for enhancing financial capabilities,” he added.
In her key note address, the Independent Consultant and Expert on Financial Education and Consumer Protection, Ms Sue Rutledge said people have different views and emotions when they see money thus financial education should address all these varied situations and environments.
Source: Daily News, reported from Dar es Salaam, Tanzania
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