implementing the National Consumer Financial Education Strategy.
‘As the banking industry strives to increase access to basic financial
products and services, it is important that people are empowered
through financial education and literacy. This will ensure that the
right financial behaviour and attitude is cultivated, and that people
acquire the requisite skills to engage financial institutions and
better understand products and services,’ says Fikile Kuhlase, senior
general manager for Socio-Economic Growth and Development at
The Banking Association South Africa (The Banking Association).
In underlining the need for consumer education in the country,
Kuhlase points to negative data, which shows – among other challenges
– that an estimated 67% of adult South Africans do not save.
About 9.6 million (about 47%) of the 20.2 million credit-active
customers have impaired credit records, according to the National
Credit Regulator’s (NCR) data.
‘Debt is crippling consumers and it leads to a downward spiral
into poverty, resulting in a debt trap, thus encouraging a savingsoriented approach to life is essential. Savings help individuals and
families create a buffer during hard times and to achieve long-term
goals. As the industry strives to bank the unbanked, it is therefore
essential to have the newly banked educated,’ says Kuhlase.
The FinScope Survey shows that in 2013 an additional 3.5 million
people were “banked”, an increase from 67% in 2012 to 75% in 2013.
FinScope says the increase in the banked population was driven by
the roll-out of the South African Social Security Agency system and
organic banking growth.
‘Debt is crippling consumers and it leads to a
downward spiral into poverty, resulting in a
debt trap, thus encouraging a savings-oriented
approach to life is essential.’
Edition 8
Consumer_Education.indd 13
BANKER SA
13
2013/12/20 9:37 AM