Financial Literacy and Financial Inclusion

Key findings

• The financial attitude score for the ECCU is 1.9 out of 4 or 47.6%. ECCU households focus on short-term plans and spending money rather than saving it.
• The financial behavior score in ECCU amounts to 6.0 out to 9 or 66.5%.
• The financial knowledge score in the ECCU amounts to 4.4 out of 7 or 62.2%.
• The overall financial literacy score of the ECCU member countries equaled 12.2 (61.2% of the maximum value). The overall financial literacy score is obtained as the sum of financial knowledge (maximum score 7), financial behaviour (maximum score 9), and financial attitudes (maximum score 4). It can take any value between 0 and 20.
• Overall financial literacy was highest with persons making $3000 and over per month, while the lowest score was with persons who do not have internet access.
• Over 88% of ECCU respondents were aware of at least 5 of the 18 financial products listed. Financial inclusion indicators identify the extent to which citizens use financial products in three categories. The first category of products identified is savings, investment, or retirement products. The second category is insurance products (car and home insurance specifically), and the third is mortgages, credit cards, microloans, etc. The partial overall digital financial literacy score for the ECCU households was 3.3 out of 7 (47.1%)

About the survey

Financial literacy, as defined by the Organisation for Economic Co-operation and Development, is a combination of financial awareness, knowledge, skills, attitudes and behaviors necessary to make sound financial decisions and ultimately achieve individual financial well-being. According to the World Bank, Financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance – delivered in a responsible and sustainable way.

The Financial Literacy and Financial Inclusion Survey forms part of the Digital Financial Services Component of the World Bank funded Caribbean Digital Transformation Project.

The Caribbean Digital Transformation Project (CARDTP) is being executed in the Eastern Caribbean and is focused on building five key foundations of the digital economy - digital infrastructure, platforms, skills, financial services, and entrepreneurship with an objective to “increase access to digital services, technologies and skills by governments, businesses, and individuals”. The ECCB is a technical lead institution in the project.

Data Point Solutions Inc., headed by Chief Executive Officer Edwin St Catherine, was the contracted agency responsible for administering the survey throughout the ECCB member countries. Overall, the survey captured baseline information about:

• Financial behaviour, attitudes, and knowledge of individuals in the ECCU;
• Financial awareness and access to financial services and products; and
• Defining realistic targets that can be monitored to measure progress over time.

What’s next?

Volume 1 of the ECCU Financial Literacy and Financial Inclusion Survey report is published here for the information for citizens, governments, financial institutions and businesses to access. A second volume with further details will be published.

The ECCB and OECS Commission will work with member states to create a financial inclusion strategy to help transform citizen awareness and access to financial products and services. The strategy will also address how progress towards financial literacy and financial inclusion in the region is measured.