A better understanding of some populations, including vulnerable groups, to improve their digital financial literacy

The Commission aims at assisting the French Central Bank (BdF), the French Financial Markets Authority (AMF), the French Prudential Supervision and Resolution Authority (ACPR), the Institut d'émission des départements d'outre-mer (IEDOM), which is responsible for ensuring territorial continuity in monetary matters by delegation of Banque de France in the Outermost Regions and the Overseas Countries and Territories whose currency is the euro, and the Institut d’émission d’outre-mer (IEOM), which is especially responsible for issuing currency for the French Overseas Countries and Territories in the Pacific, in designing a financial education strategy for the French overseas population by providing a set of measures so that they avoid making wrong financial investments or being scammed.

This national strategy, educational tools and a communication campaign around them will enable the French overseas population to enhance their level of financial literacy and, as a result, make effective and sustainable financial decisions and avoid frauds and scams.

Context

The proliferation of digital financial products, their growing complexity and the increase of online financial frauds and scams bring about new challenges and highlight the need for sustained policy actions in favour of digital and financial literacy. The project will contribute to increasing digital financial literacy levels of the French overseas population (11 territories) as well as their resilience against financial frauds and scams and cybersecurity attacks by collecting evidence among this population, liaising with relevant stakeholders, developing a proposal for a tailored digital financial literacy strategy, and developing implementation tools (including educational material and the outline of a communication campaign targeting the concerned audience).

Support delivered

Funded by the European Commission through DG REFORM’s TSI, this project is realised with the support of the OECD, which has substantial experience in financial literacy.

During 24 months, the OECD analyses the knowledge, attitudes, and behaviours of the French overseas population regarding digital financial services and information sources, including risk of scams, through a qualitative and a quantitative survey in the 11 French Outermost Regions and Overseas Countries and Territories, which will help determine several profiles among these populations.

Then, a national strategy with a defined structure, timing, activities to develop and proposed methodology, will be designed in order to promote an appropriate and safe use of financial products and services by the French overseas population.

Financial education content will be created for the French overseas population, including around eight specific communication tools among videos, infographics, fact-sheets, guides, simulators, decision trees and podcasts, to be released on the web and social media, as well as an outline of a communication campaign targeted at the French overseas population to disseminate both the national strategy and the educational tools.

Expected results

This project will result in fewer frauds and scams and a wiser use of digital financial products and ultimately contribute to an enhanced level of digital financial literacy for the French overseas population. This should result in knowledgeable citizens capable of making informed decisions, which is necessary to ensure their financial wellbeing while favouring economic growth in these territories.

In the longer term, this support is expected to contribute to financial stability and prosperity at both individual and country level.