financial literacy in the cis and at a global level · interest paid on loan risk and return...

FINANCIAL LITERACY IN THE CIS AND AT A GLOBAL LEVEL

Chiara MONTICONEOECD

OECD-Russia Global Symposium “Advancing financial literacy globally: implementation and innovation” 4-5 Oct 2018, Moscow

Results comparable across countries and over time

OECD/INFE financial literacy survey

…as well as on its relationship with

Behaviour

Budgeting, saving, Choosing products, Paying

bills on time, Retirement planning etc

Knowledge

Simple and compound interest,

Inflation, Time value of money, Risk and

return, Risk diversification

Attitudes

Propensity to save vs spend,

Time preference, etc.

Financial inclusion

Financial products awareness, use and

recent choice

Socio-demographics

Age, Gender, Education, Work,

Income

Wellbeing; Fraud; self-assessment of

financial knowledge

Survey instrument to capture financial literacy…

• …a combination of awareness, knowledge, skill, attitude and behaviour necessary to make sound financial decisions and ultimately achieve individual financial well-being

…in a representative sample of adults, and available in a Toolkit

• Questionnaire (core) and optional questions

• Methodological notes; Interviewer briefings

Next coordinated exercise planned for 2019

OECD/INFE survey to measure

financial literacy and financial inclusion

http://www.oecd.org/daf/fin/financial-education/2015finlitmeasurementexercise.htm

Overall financial literacy scoresAverage scores out of a maximum of 21

0

2

4

6

8

10

12

14

16

Sa

ud

i A

rab

ia (

9.6

)

Aze

rba

ija

n (

10.9

)

Ta

jik

ista

n (

11.0

)

Ita

ly (

11.0

)

Ky

rgy

z R

ep

ub

lic

(11.

1)

Arg

enti

na

(11

.4)

Arm

enia

(11

.4)

Ca

mb

od

ia (

11.5

)

Vie

t N

am

(11

.6)

Po

lan

d (

11.6

)

Av

era

ge

CIS

(11

.9)

Ind

ia (

11.9

)

Cro

ati

a (

12.0

)

Bra

zil

(12

.1)

Mex

ico

(12

.1)

Ru

ssia

n F

eder

ati

on

(12

.2)

Ma

lay

sia

(12

.3)

Geo

rgia

(12

.4)

Hu

ng

ary

(12

.4)

Tu

rkey

(12

.5)

Cze

ch R

epu

bli

c (1

2.6

)

Jo

rda

n (

12.6

)

Av

era

ge

G2

0 (

12.7

)

Alb

an

ia (

12.7

)

Th

ail

an

d (

12.8

)

Bri

tish

Vir

gin

Isl

an

ds

(13

.0)

Un

ited

Kin

gd

om

(13

.1)

Ka

zak

hst

an

(13

.1)

La

tvia

(13

.3)

Ind

on

esia

(13

.4)

Est

on

ia (

13.4

)

Be

laru

s (1

3.4

)

Net

her

lan

ds

(13

.4)

Lit

hu

an

ia (

13.5

)

Ger

ma

ny

(13

.8)

Ko

rea

(13

.9)

Po

rtu

ga

l (1

4.0

)

Ch

ina

(14

.1)

Au

stri

a (

14.2

)

Be

lgiu

m (

14.3

)

New

Zea

lan

d (

14.4

)

Ho

ng

Ko

ng

, C

hin

a (

14.4

)

Ca

na

da

(14

.6)

No

rwa

y (

14.6

)

Fin

lan

d (

14.8

)

Fra

nce

(14

.9)

Knowledge Behaviour Attitudes

• Low average scores in all countries • Lower in the CIS than at global (G20) level

Financial knowledge% of adults who can answer correctly at least 5 questions out of 7

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Ta

jik

ista

nK

yrg

yz

Re

pu

bli

cC

am

bo

dia

Aze

rba

ija

nV

iet

Na

mA

rmen

iaA

ver

ag

e C

ISS

ou

th A

fric

aIn

dia

Ita

lyM

ala

ysi

aB

riti

sh V

irg

in I

sla

nd

sA

rgen

tin

aM

exic

oT

ha

ila

nd

Ka

zak

hst

an

Alb

an

iaB

ela

rus

Ru

ssia

n F

eder

ati

on

Cro

ati

aJ

ord

an

Un

ited

Kin

gd

om

Bra

zil

Av

era

ge

G2

0In

do

ne

sia

Sa

ud

i A

rab

iaC

zech

Rep

ub

lic

Po

lan

dG

eorg

iaT

urk

eyG

erm

an

yF

ran

ceH

un

ga

ryB

elg

ium

Lit

hu

an

iaP

ort

ug

al

Ca

na

da

Ch

ina

Ko

rea

New

Zea

lan

dN

eth

erla

nd

sA

ust

ria

La

tvia

No

rwa

yF

inla

nd

Est

on

iaH

on

g K

on

g (

Ch

ina

)

• Lower financial knowledge in the CIS than at global level

Financial knowledge% of adults who can answer correctly to questions on these topics

0 10 20 30 40 50 60 70 80 90

Interest paid on loan

Risk and return

Definition of inflation

Diversification

Time value of money

Calculation of interest plus principal

Interest compounding

Average CIS Average G20

• Countries in the CIS struggle on all topics

• But particularly on simple and compound interest, time value

of money • 58% on average said that they

did not know the answer to at least one question

Financial attitudes% of adults with long-term oriented financial attitudes

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Sa

ud

i A

rab

iaA

rmen

iaJ

ord

an

Ho

ng

Ko

ng

…In

dia

Po

lan

dK

aza

kh

sta

nA

zerb

aij

an

Av

era

ge

CIS

Be

laru

sG

eorg

iaM

ala

ysi

aL

atv

iaR

uss

ian

…C

roa

tia

Ky

rgy

z R

ep

ub

lic

Ta

jik

ista

nA

rgen

tin

aM

exic

oIt

aly

Cze

ch R

epu

bli

cT

ha

ila

nd

Av

era

ge

G2

0T

urk

eyS

ou

th A

fric

aC

hin

aB

razi

lF

ran

ceK

ore

aE

sto

nia

Ger

ma

ny

Ja

pa

nB

riti

sh V

irg

in…

Lit

hu

an

iaB

elg

ium

Net

her

lan

ds

Un

ited

Kin

gd

om

Au

stri

aF

inla

nd

Alb

an

iaH

un

ga

ryP

ort

ug

al

Ca

na

da

No

rwa

yN

ew Z

eala

nd

Ind

on

esi

a

• Financial attitudes are more oriented towards the short term in the CIS than at global level

Financial behaviour% of adults who report at least 6 financially savvy behaviours out of 9

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Hu

ng

ary

Arg

enti

na

Ita

ly

Po

lan

d

Geo

rgia

Bra

zil

Tu

rkey

Est

on

ia

Cro

ati

a

Mex

ico

Cze

ch R

epu

bli

c

Aze

rba

ija

n

Ru

ssia

n F

eder

ati

on

Alb

an

ia

Net

her

lan

ds

La

tvia

Arm

enia

Lit

hu

an

ia

Ky

rgy

z R

ep

ub

lic

Av

era

ge

G2

0

Ta

jik

ista

n

Un

ited

Kin

gd

om

Av

era

ge

CIS

Ind

ia

Ma

lay

sia

Ko

rea

No

rwa

y

Ind

on

esi

a

Ko

rea

Jo

rda

n

Ger

ma

ny

New

Zea

lan

d

Th

ail

an

d

Ho

ng

Ko

ng

(C

hin

a)

Sa

ud

i A

rab

ia

Po

rtu

ga

l

Ca

na

da

Au

stri

a

Ch

ina

Be

lgiu

m

Fin

lan

d

Bri

tish

Vir

gin

Isl

an

ds

Ka

zak

hst

an

Be

laru

s

Fra

nce

• Average behaviour score in the CIS similar to G20 level, with…• Wide dispersion of behaviour scores across the CIS• Very high scores in Kazakhstan and Belarus

Financial behaviour% of adults who in engage in these behaviours

0 20 40 60 80 100

Responsible for decisions andhas a budget

Considered purchase

Timely bill payment

Close watch on financialaffairs

Financial control


0 50 100

Borrowing to make endsmeet

Striving to achieve long-termfinancial goals

Active saving

Financial resilience


0 10 20 30 40 50 60

Some attempt to makeinformed decision or sought

some advice

Used independent info oradvice

Making informed financial product choices


Adults in CIS countries • Appear to have good financial

control• But many are borrowing to

make ends meet• And could make more informed

choices

• Women have lower financial knowledge then men in 4 out of 7 CIS countries; but lower behaviour scores only in 1 country and no variation by gender in attitudes

• Variations by age are not very large, once other factors are taken into account. But the elderly have lower financial knowledge in 2 countries; lower behaviour scores in 1 country

• People living in rural areas have lower financial knowledge and behaviour in 3 countries

• Above median income and education beyond high school are strongly correlated with knowledge and behaviour; the association with attitudes is not very strong

Variations across subgroups in the CIS

СПАСИБО!

www.oecd.org/finance/financial-education/

[email protected]

Olaf Simonse

Ministry of Finance, the Netherlands

New vulnerable groupsin a digitizing world

Digitization – opportunities and risks

2

Financial administration in a digital age

• At least 40% of the Dutch population has difficulty managing their financial administration

• Two groups with increased risk:• Young adults (18-35 years)

• People that lack digital skills (underrepresented in the study)

3

keepingrecords

checking“my”-environments

opening mails on a daily basis

paying billson time

talking aboutmoney matters

Many people lack literacy and numeracy skills ...

4

* Adult pupulation (16+): 14.4 million

... and digital skills

• 20% of the Dutch population(16-74) has insufficient digital skills (Eurostat, 2015)

• 1,2 million Dutch (12+) have never used the internet (Central Bureau for Statistics, 2016)

5

Literacy and debts

There is a clear link betweenliteracy/numeracy/digital skills and financial problems

E.g. 50% of the people withproblematic debts have a low level of literacy

We need new ways to addressthe needs of these groups

moneywiseplatform.nl | october6

7

Financially healthy employees website

Website for employers including:

• Signalling tools: how do you recognize financialdistress?

• Checklist per life event

• Tips to have the conversation

• Referral tool to counseling, advice, help

•Information about attachment of earnings

• Behavioral insights and organisation tips

• LinkedIn page and news letter

Strategic goal: making financial healthpart of HR policy

Levels of Financial Literacy at A Regional and Global Level:

Indonesia Experience

SarjitoDeputy Commissioner of Financial Education and Consumer Protection

Indonesia Financial Services Authority

www.sikapiuangmu.ojk.go.id @sikapiuangmu@sikapiuangmu Sikapi Uangmu OJK5Sikapi Kontak OJK5157

2

A G E N D A

National Financial Literacy and InclusionSurvey 2016

Indonesia FSA, World Bank, and OECD Survey

Follow-up of National Survey

Inputs for Next Survey

Why is Financial Literacy Measurement Needed?

4


Measurement tool for

evaluating the effectiveness and

efficiency of financial literacy

programs

EVALUATION

Input for both regulator and

financial institution to determine

effective education program and

innovative financial products

RECOMMEN-DATION

To identify current

condition of financial literacy

To give an input in formulating framework of

financial literacy policies

POLICY

6


Financial Capability Survey (2013)

&Global Financial Inclusion Index

(2017)

National FinancialLiteracy and

Inclusion Survey(2016)

2015 OECD/INFE Toolkit for Measuring Financial Literacy and Financial Inclusion

&Programme for

International Students Assessment (PISA)

9.680Respondents

±1.000 Respondents/

country

±1.000 Respondents/

country(OECD Toolkit)

44Questions

48Questions (Findex)

55Questions

(OECD Toolkit)

7


FINANCIAL LITERACY

• Knowledge• Confidence• Skill• Attitude• Behaviour

FINANCIAL CAPABILITY

• Knowledge• Attitude• Behaviour

FINANCIAL LITERACY

• Awareness• Knowledge• Skills• Attitude• Behaviour

FINANCIAL INCLUSION

Usage of financial productsand/or services

FINANCIAL INCLUSION

Proportion of individuals and firms that use financial services.

FINANCIAL INCLUSION

• Affordability• Timely and adequate access

THE ASPECTS :

National Financial Literacy and InclusionSurvey 2016

9

National Financial Literacy and Inclusion Survey 2016

9680 RESPONDENTS

GEOGRAPHICAL COVERAGE AND RESPONDENT’S PROFILING

COVER ALL PROVINCES (34), 64 CITIES

Indonesia Financial Services Authority conducts National Survey on Financial Literacy and Inclusion every 3 years.

The next survey will be in 2019

24 Provinces – with normal population @ 2 Cities

3 Provinces – with largest population @ 3 Cities

Measuring financial literacy and inclusion in 6 financial industries:

Banking, Capital Market, Insurance, Financing Institution, Pension Fund, and

Pawnshop

7 Provinces – established less than 20 years@ 1 City

10


GEOGRAPHICAL COVERAGE AND RESPONDENT’S PROFILING

Margin of Error

5%

Survey Sampling Method

Multi-‐stage stratified random sampling

Number of Questions44 questions on

profiling respondent,financial literacy,

financial inclusion, & supporting questions

• Man• Woman

• 15-17 y.o• 18-25 y.o• 26-35 y.o• 36-50 y.o• > 50 y.o

• Have no formal education/ Not graduated from primary school

• Primary School Graduate• Secondary School

Graduate• High School Graduate• College or University

Graduate• Entrepreneur• Employee and

Professional• Student/college student • Housewife• Pensions• Others

• Rural• Urban

• A Class• B Class• C Class• D Class • E Class

GENDER REGION

EDUCATION

AGE

OccupationEXPENDITURE

Data Collection

Face to Face Interview

11


Attitude

Behaviour

National FinancialLiteracy Survey

(2013)

LITERACY

Knowledge

Skill

Confidence

INCLUSION

Usage

Knowledge

Skill

Confidence

INCLUSION

National FinancialLiteracy and Inclusion

Survey (2016)

Usage

DEFINITION OF FINANCIAL LITERACY

knowledge, skill, and confidence that affect attitude and behavior to improve the financial decision making and management in order to achieve financial well being.

In 2016, we added 2 new aspects (attitude and behaviour) to the definition of financial literacy which implied in the way we measure financial literacy level.

LITERACY

In 2016, we also added an index for financial literacy and financial inclusion sharia

12


FINANCIAL LITERACY AND FINANCIAL INCLUSION INDEX

v Indonesia financial literacy index is increasing above our expectation that is 2% increase per year. The result of the survey shows that Indonesia’s financial literacy index is rising for 7.9%.

v Similar growth also shown for financial inclusion index which increases for 8.1%.v In 2019, we aim to reach 35% for financial literacy index and 75% for financial inclusion

index.

Literate21.8%

Literate29.7%

Inclusion59.7%

Inclusion67.8%

FINANCIAL

LITERACY INDEX

FINANCIAL

INCLUSION

INDEX

*) 𝞪 =5%Source: OJK, 2016

Follow Up of National Survey

14


Development of Financial Literacy Initiatives (1):

OBJECTIVES OF FINANCIAL LITERACY PROGRAM

changing attitude and behavior of individuals for better financial management to make them capable of determining and utilizing financial institutions, products and services that suit the needs and capabilities of

the consumer and society in order to achieve prosperity.

increasing the quality of financial decision making of

individuals

• √ Issuing OJK REGULATION No. 76/2016 on Raising Financial Literacy and Inclusion in the Financial Services Sector for Consumers and/or the Public

Financial'Education

Highly'financial' literate'population'who'thus'can'take'advantage'of'suitable'financial

products'and'services' to'achieve'sustainable'financial'well:being'

Broadening'Access'to Financial ServicesMISION

INITIATIVEPROGRAMS

Financial'Competence Financial'AccessSTRATEGIC.

PROGRAMS

• Financial'Goals'and'Planning

• Financial'Management'Ability

• Knowledge,'Skill,'and'Confidence

• Infrastructure

• To'Broaden'and'Ease'Financial'Access

• Availability'of'Financial'Products'and'Services

Financial Wise'(Behavior'and'Attitude)

• √ Revising Indonesian National Strategy for Financial Literacy (revised 2017)

15


Development of Financial Literacy Initiatives (2):• √ Continue to improve in developing financial literacy programs, materials and

infrastructures, such as:

Board Game for Elementary School

Financial Literacy Book For Senior High School

Financial Literacy Book for Elementary School

Financial Literacy Book Series for College Students

Financial Literacy Book For Junior High School

2014 20152014 2016 2017

• E-book version of Financial Literacy Book For Senior High School

• E-learning version of Financial Literacy Book For Elementary and Junior High

2013 20152014 2016

Financial Literacy Series Brochure and Booklets

Practical Books of Financial Literacy Series for Professionals and Retirees

Braille version of Financial Planning Book

2017

Material for Financial Education for Communities

Material for Formal Financial Education (Students and College Students)

16


Development of Financial Literacy Initiatives (3):• √ Continue to improve in developing financial literacy programs, materials and

infrastructures, such as:

Financial Education using Financial Literacy Car (SIMOLEK)

Financial Education Programs through Digital

ü Education for Teachers/Educators in formal education programü Education for Targeted Communities including: women, remote communities, farmers and fishermen, migrant workers, etcü Financial Education using Financial Literacy Car (SIMOLEK)ü Financial Consumer Care (FCC)

Financial Education Programs

sikapiuangmu.ojk.go.id

Mobile Application Sikapiuangmu Instagram Twitter Facebook

17


Development of Financial Inclusion Initiatives:

Acceleration Team for RegionalFinancial Access (TPAKD)Coordination forum between relatedinstitutions and stakeholders toimprove acceleration of regionalfinancial inclusion in order to boostregional economic growth and also toachieve welfare.

LAKU PANDAI / Branchlessbanking is the government’s effortin supporting financial inclusionprogram which provide simple andeasy-to-understand financialproducts, and relevant with society’sneeds that have not been coveredwith financial services so far.The products provided: 1) BasicSaving Account (BSA), 2)Loans/financing for micro businesscustomers, and 3) Other financialproducts such as micro insurance.

Student Savings (SIMPEL)

Saving for student that is nationallyissued by Indonesian banks with easy andsimple process, in order to educatestudent a good saving behaviour andinclude them in financial system from theearly stage.

Non-cash Social assistance program (BPNT)

Non-‐cash social assistance program is provided in thecontext of poverty reduction programs which includesocial protection, social security, socialempowerment, social rehabilitation, and basicservices. The distribution of non-‐cash socialassistance is carried out through the transfer of fundsto recipient’s account. People who do not have asavings account required to open an account at thebeginning.

19


LITERASI

Knowledge

Skill

Confident

IMPROVE THE SAMPLINGMETHODOLOGY

In order to get morerepresentative data of Indonesiawhich consist of suchheterogeneous population.

REDUCE NUMBER OF QUESTIONSSome respondents find thequestionnaire a bit too long,causing the interview becomingless focus and respondents nolonger give full concentration tothe question.

SIMPLIFY THE LANGUAGE OF QUESTIONNAIREUse no sophisticated languagenor complicated financial term tomade it easy for respondents tounderstand, especially those whocame from middle to loweconomy background.

Based on the evaluation of survey implementation in 2016, there are few findings that will be used as an inputs for the next survey:

Thank You

2 0 1 8


Annex

2 0 1 8


22


FINANCIAL LITERACY LEVEL BY REGION FINANCIAL LITERACY LEVEL

BY GENDER

69,6%

66,2%

33,2%

25,5%

FINANCIAL INCLUSION LEVEL BY GENDERFINANCIAL INCLUSION LEVEL

BY REGION

33.2%23.9%

0%

20%

40%

60%

80%

100%

Urban Area Rural Area

71.2%63.2%

0%

20%

40%

60%

80%

100%

Rural Area Urban Area

23


FINANCIAL LITERACY LEVEL BY OCCUPATION

FINANCIAL INCLUSION LEVEL BY OCCUPATION

15.3%

22.8%

23.4%

27.7%

35.3%

39.9%

0% 20% 40% 60% 80% 100%

Housewife

Others

Student/College Student

Entrepreneur

Retiree

Employee and Professional

22.8%

61.4%

64.2%

66.6%

73.9%

74.0%

0% 20% 40% 60% 80% 100%

Unemployed and Others

Housewife


Entrepreneur

Employee and Professional

Retiree

FINANCIAL LITERACY LEVEL BY EDUCATION LEVEL

3.6%

9.0%

11.3%

38.2%

67.4%

0% 20% 40% 60% 80% 100%

No formal education

Complete some secondary school (Junior high)

Complete primary school

Complete secondary school (High School)

University-‐Level Education

FINANCIAL INCLUSION LEVEL BY EDUCATION LEVEL

39.6%

57.4%

60.0%

72.8%

88.0%

0% 20% 40% 60% 80% 100%

No formal education

Complete some secondary school (Junior high)


Complete secondary school (High School)

University-‐Level Education

24


RESULT #1 : FINANCIAL KNOWLEDGE (1)

15.7%

22.4%

49.8%

58.2%

60.3%

99.8%

Capital Market

Pension Fund

Financing Institutions

Pawnshop

Insurance

Banking

FORMAL FINANCIAL SERVICES PROVIDER MOST KNOWN FORMAL FINANCIAL PRODUCTS IN EACH INDUSTRY

15.0%

20.9%

39.0%

56.6%

60.2%

99.3%

Capital Market

Pension Fund

Financing Institutions

Pawnshop

Insurance

Banking

25


RESULT #1 : FINANCIAL KNOWLEDGE (2)

25

FINANCIAL PRODUCTS CHARACTERISTICS

DELIVERY CHANNELS

3.3%

12.0%

12.1%

16.5%

17.2%

23.5%

92.1%

96.2%

Bancassurance

Phone Banking

Online Transaction

Agent

Mobile Banking

EDC

ATM

Office

36.1% -‐ Risks86.0% -‐ Benefits

36.1% -‐ Obligations40.5% -‐ Rights

66.0% -‐ Fines37.6% -‐ Costs

40.6% -‐ Accessibility82.7% -‐ Features

26


RESULT #2 & #3: FINANCIAL SKILL & CONFIDENCE

90.5%

42.2% 37.1%27.0% 17.4% 9.0%

Banking Pawnshop Insurance Financing Institutions

Pension Fund

Capital Market

Respondents are most confident with banking institution.

respondents state they have confidence to manage their finance.

but only

17%

CONFIDENCESKILL

The result shows that the respondents underestimate their skills to calculate interest

rate and understanding about inflation concept.

• 36.8% respondents state that they have the ability to calculate the interest rate, installments, investment return, transaction costs, fines, and/or inflation rate.

• 93.6% respondents can correctly answer simple arithmetic questions.

• Only 30.7% respondents express that they can calculate interest rate, BUT 62.1% respondentsactually give right answer regarding interest rate computing.

• 11.1% respondents state that they are able to estimate inflation rate and 13.4% respondents provide the correct answer about inflation concept.

27


RESULT #4 & #5: FINANCIAL ATTITUDE & BEHAVIOUR

BEHAVIOURATTITUDE96.7%

of respondents reveal that they have a financial goal.

The top three of the financial goals are:

69.0% Fulfill daily needs and continue their

daily life

12.6%Pay for

education purposes

6.3%Retirement

planning

To achieve their financial goal, people tend to choose short term attempt which is in line with

their financial goal.

74.6%Savings

41.8%Create

financial budgeting

38.0%Working/Find a job

28


RESULT #4 & #5: FINANCIAL ATTITUDE & BEHAVIOUR

BEHAVIOURATTITUDE

54.9%45.1%

Yes No

72.5% 27.5%

General Detailed

More than half the respondents convey that they have monthly financial budgeting

(54.9%). Yet, only 27.5% of them have detailed monthly budgeting.

Most of the respondents use financial products to save their funds (57.8%), for daily financial

transaction (55.0%) and to provide safety (45.3%).

57.8%Fund Savings

55.0% Daily Financial Transactions

45.3% Provide

sense of security

29


RESULT ON FINANCIAL INCLUSION:

USAGE OF FORMAL FINANCIAL PRODUCTS IN EACH INDUSTRY

1.3%

4.7%

10.5%

11.8%

12.1%

63.6%

CapitalMarket

PensionFund

Pawnshop

FinancingInstitutions

Insurance

Banking

Savings and transfer are the top most used products and services. This data is in line with

the people’s objective of using financial products that is for saving and daily transaction.

0.4%0.9%4.1%4.2%4.3%4.9%

71.8%80.5%

Bancassurance

EDC

Agent

Online …

Mobile Banking

Phone Banking

ATM

Office

USAGE OF DELIVERY CHANNELS

Most of the respondents prefer to go to financial provider offices to make financial

transactions. Meanwhile, only limited percentage of respondents choose digital

financial delivery channel (e.g. phone banking, mobile banking).

30


RESULT ON SHARIA INDEX:

9.61%

1.92%

0.71%

0.24%

0.01%

0.00%

6.63%

2.51%

1.63%

0.19%

0.02%

0.00%

0.00% 5.00% 10.00% 15.00% 20.00%

Banking

Insurance

Pawnshop

Financing

Capital Market

Pension Fund

Financial Literacy Financial Inclusion

NATIONAL SHARIA FINANCIAL LITERACY INDEX

NATIONAL SHARIA FINANCIAL INCLUSION INDEX

*) 𝞪 =5%Source: OJK, 2016

11,6%11,6%

8,11%

OECD Survey

32

OECD Survey

LITERASI

Knowledge

Skill

Confident

DATA RESULT OF OECD QUESTIONNAIREusing 2015 OECD/INFE Toolkit for Measuring Financial Literacy and Inclusion

1.000 out of 9.680 National Survey Respondents also answered Questions from OECD Questionnaire

591/ 59.10%

409/40.90%

REGION

Urban Rural

539/ 53.90%461/

46.10%

GENDER

Male Female

62/6.20%

191/19.10%

269/26.90%

259/25.90%

157/15.70%

57/5.70%

5/0,5%

AGE GROUP

18-‐19 20-‐29 30-‐39 40-‐4950-‐59 60-‐69 70-‐79

134/13.40%

156/15.60%

416/41.60%

225/22.50%

69/6.90%

EXPENDITURE

A B C D E

6 (0,60%)

105 (10,50%)

139 (13,90%)453 (45,30%)

70 (7,00%)

227 (22,70%)

0 100 200 300 400 500

No formal education


Some secondary school (complete some secondary school)

Complete secondary school (high school)

Technical/vocational education beyond secondary school level

University-‐level education

EDUCATION LEVEL

265(26,50%)

463(46,30%)66(6,60%)

159 (15,90%)

30 (3,00%)

17 (1,70%)

0 100 200 300 400 500

Self-‐employed

In paid employment (work for someone else) / Professional


Housewives

Retired

Not working and other

OCCUPATION

33

OECD Survey Result – Indonesia … (1)

LITERASI

Knowledge

Skill

Confident

Financial Knowledge

DATA RESULT OF OECD QUESTIONNAIREusing 2015 OECD/INFE Toolkit for Measuring Finansial Literacy and Inclusion

Financial Attitude

Financial Behaviour

34

OECD Survey Result – Indonesia … (2)

LITERASI

Knowledge

Skill

Confident

DATA RESULT OF OECD QUESTIONNAIREusing 2015 OECD/INFE Toolkit for Measuring Finansial Literacy and Inclusion

Overall Scoreon Financial Knowledge, Attitude, and Behaviour

In this report , the result of the survey shows that Indonesia is above average, G20 countries (12,7) with total score of financial knowledge, attitude, and behavior = 13,4

financial literacy in the cis and at a global level · interest paid on loan risk and return...

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