Enhancing Financial Capability and Inclusion in Senegal : A Demand-Side Survey
Financial capability, as defined by the World Bank and in this report, is the capacity to act in one’s best financial interest, given socioeconomic and environmental conditions. It encompasses knowledge (literacy), attitudes, skills and behavior of...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/06/26526236/enhancing-financial-capability-inclusion-senegal-demand-side-survey http://hdl.handle.net/10986/24675 |
| Summary: | Financial capability, as defined by the
World Bank and in this report, is the capacity to act in
one’s best financial interest, given socioeconomic and
environmental conditions. It encompasses knowledge
(literacy), attitudes, skills and behavior of consumers with
respect to understanding, selecting, and using financial
services, and the ability to access financial services that
fit their needs (World Bank 2013d). Financial capability has
become a policy priority for policy makers seeking to
promote beneficial financial inclusion and to ensure
financial stability and functioning financial markets. Today
people are required to take increasing responsibility for
managing a variety of risks over the life cycle. People who
make sound financial decisions and who effectively interact
with financial service providers are more likely to achieve
their financial goals, hedge against financial and economic
risks, improve their household’s welfare, and support
economic growth. Boosting financial capability has therefore
emerged as a policy objective that complements governments’
financial inclusion and consumer protection agendas. To this
end, policy makers are increasingly using surveys as
diagnostic tools to identify financial capability areas that
need improvement and vulnerable segments of the population
which could be targeted with specific interventions. The key
findings and recommendations presented in this report cover
three main areas: financial inclusion, financial capability,
and financial consumer protection. The remaining chapters
are structured as follows. Chapter one explores the
financial inclusion landscape in Senegal. Chapter two gives
an overview of Senegalese levels of financial capability, in
particular about their financial knowledge, attitudes, and
behaviors. Chapter three explores the relationship between
financial inclusion and financial capability. The last
chapter investigates if the products which financially
included individuals use are effectively meeting their needs. |
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