The importance of financial education has increased in recent years as a result of financial market developments and demographic, economic and policy changes. Financial markets are becoming more sophisticated, and new products are being continuously offered. Consumers now have greater access to a variety of credit and saving instruments provided by a range of entities from on-line banks and brokerage firms to community-based groups.
Financial education is the process by which financial consumers/investors improve their understanding of financial products and concepts and, through information, instruction and/or objective advice, develop the skills and confidence to become more aware of the financial risks and opportunities to make informed choices, know where to go for help, and take other effective actions to improve their financial well-being. Moreover, we need to teach people about financial basics on saving, budgeting and other factors that can be useful to reshape their mind and become financially capable to their reach in access to formal financial services.
The critical challenge on national financial highway remains “Access to Formal Financial Channel”, huge unbanked population, lack of focused banking promotion activities and mechanism to mobilize national household savings. The initiative has been helping communities at the base of the pyramid to understand the importance of saving habits and financial planning. People from all walks of life such as young students, rural housewives, remittance dependent families, members of cooperatives, and disadvantaged and under privileged groups amongst others need financial education to enhance access to formal financial channel.
National Banking Institute (NBI), as part of our activities and in order to create awareness on access to finance has been delivering programs on “Financial Literacy” nationwide. Our small effort to contribute for the improvement in access to finance and inclusive finance so that more and more population could start accessing financial products. NBI has successfully conducted financial literacy program campaign in the grass root level of different parts of the country namely Kathmandu, Chitwan, Makwanpur, Dhading, Dang, Dolakha, Ramechhap, Sindhupalchowk, Tehrathum, Sunsari, Kaski, Tanahau and Syanjha districts.
Financial literacy will help individual to plan ahead of time for their life cycle needs and deal with unexpected emergencies without resorting to debt. This will impart knowledge to enable financial planning, develop saving habits and improve the understanding of financial products leading to effective use of financial services by an individual. An early introduction to and understanding of words like "earning", "credit", "income" and "investing" will pay enormous dividends down the road. An individual having sound financial know-how will be best-positioned to grasp the dream as the economic tide rises. Program on financial literacy cover major aspects of people daily life such as
- Dealing with Financial Service Providers
- Rights and responsibilities of Customers
National Banking Institute has been delivering following programs in different parts of the country.
- Awareness Program on Financial Literacy
- Training on Financial Literacy
- Train the Trainer on Financial Literacy
Banking and financial institutions, as a provider of financial products and services must have feeling that it's their duty to provide clients and the communities they serve with financial education tools and resources, so that the next generation is equipped to lead fiscally responsible lives. This will also help financial institutions to capture the untapped business opportunities especially in rural areas of the country. Banks and financial institutions can play a key role in helping to improve consumers' financial literacy so they can make informed decisions and begin building and preserving their assets.