Seychelles’ financial survey reveals more education is needed

Posted in Seychelles offshore jurisdiction at 6:03 pm by Robert Klien

In accordance with the Seychelles’ first financial literacy survey, the majority of people in Seychelles know about financial products and services and have access to them, but do not know about how to use and evaluate these services.

The findings of the baseline survey were presented by Abel Motsomi of FinMark Trust, an independent organisation based in South Africa, which carried out the survey along with the Central Bank of Seychelles (CBS) and the local Financial Services Authority.

The objective of the study which was recommended as part of the Financial Sector Development Implementation Plan was to measure and provide credible benchmarks on financial literacy and capability.

Beggita Vital, the Payment Systems officer at CBS, said 562 interviews were conducted on Mahe, Praslin and La Digue, the three most populated islands in Seychelles.

The study showed that 94% of the participants have transacted with a bank and most knew about financial products and services available and had access to them. However, they were not necessarily knowledgeable about how to evaluate and use these services.

“Another common complaint that we receive at CBS by customers is that they were not aware that as guarantor of a loan, they are responsible to repay the loan in the event of a default by the borrower and this also came out of the study,” Vital said.

Other findings show that 94% of the people interviewed had transacted with a bank, and 87% wanted to improve their financial situation while 46% did not have a plan of what to do.

On the need for financial information, 38% felt they wanted to know more including how to save, invest and budget. While 83% of the people interviewed knew how much they earned or received, only 14% kept track of how much they lend.

The results of the study will be used to develop a national strategy for financial education in Seychelles.

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