An analysis of financial literacy in the target market of a state–owned bank / Peterson D.D.

• Main Author: Peterson, Denis Desmond.
• Published: North-West University 2013
• Subjects: Financial literacy; State-owned bank; Financial services; Financial education; Low income and rural areas; Financial inclusion; South African Postbank Limited Act 9 of 2010; Postbank; Sustainability of social mandate; Target market of a state-owned bank; Day-to-day money management; Financial planning; Choosing appropriate products; Financial knowledge and understanding; Finansiële geletterdheid; Staatsbank; Finansiële dienste; Finansiële opvoeding; Suid-Afrikaanse Posbank Beperk Wet 9 van 2010; Posbank; Volhoubaarheid van 'n sosiale mandaat; Mark van 'n staatsbank; Dag-tot-dag finansiële bestuur; Finansiële beplanning; Onderskeid tussen finansiële produkte en dienste; Finansiële kennis en begrip
• Online Access: http://hdl.handle.net/10394/8167

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. === Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2012.