Unlocking financial literacy: The power of thinking local

02 October 2001

Assad Umar, Programme and Engagement Manager, Digital Finance, Consumers International 

In this blog, Assad Umar, programme manager for Consumers International's Fair Digital Finance Accelerator, explains what it means to 'localise' financial literacy initiatives, and why doing so is essential to empowering digital finance consumers in all corners of the world.  

In today's rapidly evolving digital world, financial literacy has become an indispensable skill for individuals to make informed decisions about how they interact with digital financial services and products. Therefore, fostering financial literacy is crucial to ensuring that consumers are equipped with the knowledge and tools they need to navigate the complexities of modern financial systems.

As the Programme Manager for the Fair Digital Finance Accelerator, I work with consumer associations from all regions of the world to help ensure consumers everywhere have access to fairer, safer, and inclusive digital financial services. What I’ve seen overlooked time and again is the importance of considering local languages and indigenous concepts when designing financial products. A few weeks ago, I had the honour of being the keynote speaker at a workshop on financial literacy organised by GSMA in Abuja, Nigeria.


Together, experts and leaders discussed the barriers we need to overcome to realise financial inclusion worldwide. Financial products and services can often be complex, even for highly literate and well-versed individuals. However, for many, especially those in underserved or rural areas, language barriers and cultural differences can pose significant obstacles to understanding and utilising financial tools effectively. This is where the integration of local languages and concepts becomes paramount. As my good friend Abiola Jimoh, co-founder of XchangeBox, observed in the panel session at the event; financial literacy is about so much more than whether the user can speak English!

Bridging the inclusivity gap 

The financial sector is awash with technical jargon and intricate concepts that don’t always translate well into local languages. Consider a rural farmer in Nigeria who has had limited exposure to formal and financial education. Without access to information in a language they understand, barriers to access will remain high and their power to make informed choices will be limited.

Financial literacy initiatives that incorporate local languages create a sense of familiarity and trust, demystifying complex financial concepts, empowering customers and fostering fair marketplace practices. Financial providers should also see the responsibility to localise their products as an opportunity to make their offerings accessible to a wider audience, and thereby significantly increase their userbase.

 

Culture matters to digital finance

Beyond language, culture plays a pivotal role in the effectiveness of financial literacy initiatives. How we perceive, manage and talk about money varies across different contexts. . What might be a sound financial practice in one culture could be entirely inappropriate in another. By considering local customs, traditions, and perceptions around money, financial literacy programs can tailor their content to resonate with the target audience. The incorporation of local languages and cultural insights into financial education initiatives will pave the way for more inclusive and effective solutions.

Localisation in action

Several financial literacy initiatives have successfully incorporated local languages and concepts into their design, leading to positive outcomes:

  1. M-PESA in Kenya: M-PESA, a mobile money platform, has leveraged local languages to facilitate its adoption among Kenyan users. By providing instructions and notifications in Swahili, M-PESA has been able to empower users with clear and concise information, driving financial inclusion.
  2. Microfinance Initiatives in India: Many microfinance organizations in India use local dialects to communicate financial information. This practice has significantly enhanced engagement and understanding among rural communities, enabling them to manage their finances more effectively.
  3. Community-Based Financial Workshops in Nepal: Non-profit organizations in Nepal organize workshops in local languages that focus on savings, budgeting, and debt management. These workshops resonate with participants, empowering them to take control of their financial futures.

How the Fair Digital Finance Accelerator is thinking local

As part of the Fair Digital Finance Accelerator training program, we are delivering a comprehensive training program, on different aspects of financial consumer protection. The programme is delivered in English, French and Spanish, and takes into account national and regional use cases. We are constantly advocating for businesses and service providers to put these issues at top of their agenda when products are designed.

In a world where digital financial services are becoming increasingly prevalent, efforts to ensure that the benefits of these services are accessible to all, regardless of linguistic or cultural backgrounds, are vital. By embracing the power of language and culture, financial literacy initiatives can empower individuals to make informed decisions, protect themselves from financial risks, and actively participate in the modern economy.


Finally, the importance of considering local languages and concepts in designing financial products cannot be overstated. It's a crucial step towards fostering financial inclusion, empowering consumers, and ensuring that no one is left behind in the journey towards a more financially secure future.