Making Sense of Financial Capability Surveys around the World

Transcription

1 Making Sense f Financial Capability Surveys arund the Wrld A Review f Existing Financial Capability and Literacy Measurement Instruments The Wrld Bank Valeria Pertti/Siegfried Zttel Kenya-OECD-Wrld Bank Cnference Nairbi, January 2013

2 Purpse f the Review Guide plicy makers n existing measurement instruments Useful fr plicy makers wh priritize Fin. Capability, Fin. Inclusin r Fin. Cnsumer Prtectin Describe and cmpare key instruments that are: Innvative Fcused n demand-side (husehld vs. business) Well established Well dcumented 2

3 Surveys Reviewed Jump$tart Cnsumer Fraud US FSA Cnsumer Awareness UK FSA Prtugal Findex Eurbarmeter FinScpe WB FCCP Survey f Cnsumers Financial Diaries Ghana FSS Singapre US Health & Retirement Study CP Kenya Kenya FinAccess Fiji OECD/INFE WB/Russia FLIT New Zealand 3

4 Cntent f the review Key questins addressed by the review: 1. Hw can a survey supprt plicy making? 2. What d these surveys measure and hw? 3. Hw can a survey be prperly implemented? 4. Hw can the data be analyzed? 4

5 1. Hw can a survey supprt plicy making?

6 Capability Baseline assessment f weak areas/targets Identify ptential channels fr inf r FE Understand knwledge/behavir relatinship Understand behavir related persnal r husehld finances Inclusin Determine what prducts peple use Understand reasns fr limited use Understand hw peple use infrmatin Understand attitudes twards fin. issues Cnsumer Prtectin Assess awareness f CP laws, mechanisms Identify ptential victims f fraud Assess attitudes and trust in prviders and regulatrs

7 2. What d these surveys measure and hw?

8 Financial Capability Knwledge f financial cncepts Awareness f financial prducts and services Practical Knw-hw Questins n inflatin cmpund interest budgeting returns n investment insurance mney illusin Risk diversificatin

9 Financial Capability Knwledge f financial cncepts Awareness f financial prducts and services Practical Knw-hw Questins n Awareness f prduct existence Basic prduct features Advantages f using prducts Risks and csts

10 Financial Capability Knwledge f financial cncepts Awareness f financial prducts and services Practical Knw-hw Questins n Hw t make payments Hw t set up a budget Hw t keep financial recrds Hw t pen a bank accunt Hw t seek fr recurse

11 Financial Capability Behavir Attitudes Budgeting Questins n Paying bills n time Saving Making chices Brrwing Overspending Planning fr ld age Dealing with unexpected expenses/incme lss

12 Financial Capability Behavir Attitudes Questins n Reasns fr r fr nt saving, brrwing, investing, budgeting, and chsing specific financial prducts Attitudes tward impulse purchases Attitudes twards the future Prpensity t save Cnfidence in wn retirement plans

13 Financial Inclusin Behavir Attitudes Questins n Types and number f financial prducts used Frequency and mdality f use What prducts are used fr Ways f accessing financial services

14 Financial Inclusin Behavir Attitudes Questins n Perceptins n service accessibility Barriers in accessing services Reasns fr/fr nt using specific financial prducts Reasns fr changing a prduct

15 Cnsumer Prtectin Behavir Attitudes Experience Questins n Actins taken t reslve issues with fin. service prviders Where cmplaints were filed Entities cnsulted in case f disagreement

16 Cnsumer Prtectin Behavir Attitudes Experience Questins n Satisfactin with financial prducts and service prviders Trust in service prviders Cnfidence in reslving disputes Perceptins n financial regulatrs and supervisrs

17 Cnsumer Prtectin Behavir Attitudes Experience Questins n Experience with pyramid schemes Being billed fr a service nt received/prduct nt requested

18 4. Hw can a survey prperly be implemented?

19 Main appraches fr survey implementatin Wh shuld be interviewed? Individual vs. husehld Hw t ensure cmparability ver time? Repeated crss-sectin vs. panel survey Panel surveys are mre time resurce-intensive Use same questins (get sure they are still meaningful!) Emply cnsistent sampling methdlgy Hw t ensure cmparability acrss cuntries? Crdinated jint effrts by all cuntries invlved Replicating what has been dne (requires cautin!) 19

20 Hw can data quality be ensured? Develping a well-tested questinnaire Reviews f existing surveys Experts grups Qualitative testing (fcus grups, cgnitive interviews) Quantitative testing (pilt surveys) Sampling design Identify the ppulatin f interest Decide n level f cnfidence, precisin and sample size Randm sampling frm ppulatin f interest Mdes f interviewing Face t face vs. telephne vs. mail vs. internet Each mde has distinct advantages/disadvantages 20

21 5. Hw can the data be analyzed?

22 Main appraches fr data analysis Hw t develp indicatrs: Frequencies and prprtins f individual questins Cmbining data by creating cmpsite scres (e.g. sum f crrectly answered fin knwledge questins) Weighted scres Factr analysis Hw t identify ptential target grups: Use crss-tabulatins Regressins Segmentatin (by ranking peple accrding t scres) Cluster analysis 22

23 THANK YOU! Cntacts: 23