Lack of financial literacy is a big problem in Asia: report

financial literacy
Image credit: Elizaveta Galitckaia | shutterstock.com

Lack of financial literacy makes 88% of online customers in Asia face urgent shortages of money.

52% of customers of online financing services in Asia face a shortage of money occasionally. For the other 25%, it is a regularly recurring issue. Most importantly, 88% admit that their inaccuracy in personal budget planning because of insufficient financial literacy is the main reason for that. These are the findings of Robocash Group, based on its recent customer survey in the Philippines, Vietnam and India.

As the results of the survey show, neither a good education nor a sustainable source of income protects from possible gaps in a personal budget. In particular, more than half (56%) of the surveyed finished college or university. 81% have a regular job, and 12% are entrepreneurs. Still, almost all respondents mention facing an acute shortage of funds at least occasionally.

One-third (30%) of the surveyed in India deal with regular gaps in a personal budget. It is the highest share among the three countries: Vietnam has 23%, the Philippines – 21%. At the same time, far more respondents in Vietnam mention facing a lack of funds occasionally – 64%. India and the Philippines have lower figures: 48% and 44%, respectively.

The analysts at Robocash Group have added that the level of financial literacy and readiness to improve it among customers significantly correlates with their involvement in finance. Particularly, one-fourth of the respondents in the Philippines and India are directly related to finance: they have either profile education or work in this field. Therefore, it is not surprising that 3 out of 10 customers in these two countries already study financial literacy regularly. In Vietnam, only 1 out of 10 customers does it.

However, it does not mean little enthusiasm for changing the situation. To a different extent, most respondents (92%) are nonetheless interested in improving it. In return, it allows expecting a significant increase in the level of financial literacy in the near future.

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