RESERVE Bank of Zimbabwe (RBZ) deputy governor Jesimen Chipika has urged financial institutions to continue reaching out to the communities to teach them about financial literacy.
Speaking at the Global Money Week CEO Round Table yesterday, held under the theme Think Before you Follow, Wise Money Tomorrow, Chipika challenged all financial institutions to reach out and teach communities about financial literacy.
“This is our financial literacy initiative,” she said.
“Again, because it’s global money week, and this year is around financial literacy, let’s continue our community outreach as it is a great initiative.”
Chipika added that financial literacy could be achieved through different programmes, which should help communities be more knowledgeable about their finances.
For years, the RBZ has been working on bringing in the financially excluded into formal banking channels.
The central bank has estimated that US$2,5 billion in cash is currently circulating outside formal channels.
The RBZ deputy governor said banks used collateral that included all moveable assets, which communities needed to know to access funding from them.
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“The governor [John Mushayavanhu] has been appealing to us to say, if you are going out into the community, please tell them about the ‘Collateral Registry’ so that they are now able to use whatever it is they have, so that they (financial institutions) are able to just move it to valuation and be able to give them the small loan that they need,” Chipika said.
“So that’s a mandate I have been appealing to you from the governor of Zimbabwe, to say, wherever we are, let’s talk, let’s teach our people the use of the Collateral Registry. We are starting to do that, and we need to give our children that.”
Speaking at the same event, RBZ banking supervision, surveillance and financial stability director Philip Madamombe said through the advent of digital knowledge, it was now key to use digital technology to teach the youth on financial literacy.
He said teaching the youth needed to be supported by a more financially responsible generation of consumers.
“Given the advent of digital financial services, digital financial literacy has become the key in empowering young people to make informed financial decisions,” Madamombe said.
“In this regard, financial institutions and co-players are aimed to implement innovative initiatives that promote digital financial literacy, focussing on the fact that our young people are taking more steps and increasingly relying on digital platforms.”
He expressed appreciation for the efforts and commitment by stakeholders who continued to promote financial literacy.
“We have no doubt, therefore, that through our serious collaboration with stakeholders, we will continue to empower young minds with data on the future of financial literacy,” Madamombe added.
