An analysis of financial literacy in the target market of a state–owned bank
Peterson, Denis Desmond.
MetadataShow full item record
The South African Postbank Limited has been tasked by Government with a social mandate to provide basic financial services to people receiving low income and people living in rural areas. Personal financial literacy is an essential element which affects financial inclusion in the target market of a state–owned bank. To achieve the bank?s social mandate and its objective, it would be vital to determine whether people in low income and rural demographics are financially literate. Financial literacy is defined as the ability to manage your money on a day–to–day basis, do future financial planning, choose sound financial products and have appropriate financial knowledge and understanding. Various factors influence the level of financial literacy of a person and in order to improve the financial literacy of a person, cognisance should be taken of that person?s age, gender, living conditions, income–level and socio–economic elements. It will be beneficial for a state–owned bank, in order to reach its social mandate, to implement financial educational programmes to increase financial literacy. The latter will increase the amount of potential customers and thus promote financial inclusion in the long run. The sample in low income and rural areas has been found to be the most wanting in financial literacy and therefore it is crucial to address this shortcoming in the target market of the state–owned bank in order to reach the social mandate of financial inclusion.
Showing items related by title, author, creator and subject.
Kriel, Willem Jacobus Adriaan (North-West University, 2010)Personal financial management is an integrated part of modern man's everyday life. It does not only involve spending his monthly income. It comprises his outlook on life, the way he handles all his financial affairs as ...
Kleinschmidt, Fredrieka Martha Johanna (North-West University (South Africa) , Potchefstroom Campus, 2016)The South African community, like communities worldwide, is characterized by longevity. This results in a steadily increasing number of people still retiring in accordance with the current retirement policy at the ages 60 ...