Survey shows Argentina’s challenges in financial literacy

The results of the Financial Capacity Measurement Survey conducted in Argentina, prepared by the Argentinian Central Bank (BCRA) in 2017, were presented in the event titled “Where Are We and Where Are We Headed?”

The research was conducted by the Senior Specialist in Productive and Financial Development at CAF, Diana Mejía, and the head of Financial Literacy and Institutional and Social Responsibility of the BCRA, Mariano Iglesias. It was prepared based on the methodology developed by the Organization for Economic Cooperation and Development (OECD). 

According to the survey, knowledge about financial products is moderate nationwide: only 8 products or services are known by more than 50% of respondents. Furthermore, 39% of adults said they did not hold any financial product, while the most commonly owned products are debit cards (42%), credit cards (37%) and savings funds (29%).

Argentina has a financial literacy score of 11.5, with the nation ranking 37th of the 39 surveyed economies. Argentina also ranks lowest among the six countries of the region also surveyed by CAF (Argentina, Bolivia, Chile, Colombia, Ecuador and Peru), both in financial literacy and in behavior and attitude.

“Based on the results of the survey, we can conclude that there is a positive relationship between financial literacy and behavior, as well as a positive relationship between savings and financial capabilities,” explained Diana Mejía during the presentation. 

According to the research, Argentinians tend to be wary of spending their money, they pay their bills on time, and most of them personally monitor their financial issues. In addition, they have theoretical knowledge about inflation, which is among the highest worldwide. Finally, the major challenges in financial literacy are in the vulnerable population, and are related to socio-economic levels and, mainly, a lower level of education.

The workshop “Where Are We and Where Are We Headed?” was held at the Central Bank with the purpose of encouraging financial literacy and inclusion in the nation. The Deputy Director of the BCRA, Mauro Alessandro, delivered the keynote speech, followed by CAF representative in Argentina, Andrés Rugeles, who explained: “We at CAF have decided to fund the Financial Capability Measurement Survey in Argentina in order to run a diagnosis to determine the knowledge, skills and attitudes of individuals with respect to financial systems.”

After presentations by Mariano Iglesias and Diana Mejía, the Director of the Center for Women’s Economic Development, Helena Estrada, spoke about financial behavior of women. Finally, a second panel entitled “Capacity Building and Inclusion: Where Are We Headed?” was held, with presentations by the Manager of Financial Innovation at the BCRA, Alejo Macaya, and the General Coordinator of the National Microcredit Commission at the Ministry of Health and Social Development, Julián Costábile. 

For CAF, education is critical to financial inclusion, since it enables an effective use of these products and helps people develop the skills to compare and select those that best suit their needs and possibilities. Through the presentation of the Financial Capability Measurement Survey in Argentina, CAF confirms its commitment to improving the designs of financial literacy programs in the region.