By Shali Nanghala
Drawing from the Namibia Financial Sector Transformation Strategy, financial access, literacy and protection is one of the strategic pillars.
As such, more Financial Institutions ( Banks, Insurance providers, Investment Firms, Micro-lenders etc.) need to embrace investing in financial literacy focused initiatives, i.e sponsored campaigns, to help retail investors become more knowledgeable on financial matters and help them make sound financial decisions.
I acknowledge the need for product based and tactical marketing. However, it shouldn’t always be pushing of products. Beyond products, clients also need education on understanding investment risks and opportunities, how to better plan and use their savings and how to optimize their insurance.
Truly walking the journey with your clients isn’t only in honoring the insurance claims or delivering on investment returns, the value add should include prioritizing clients’ financial education.
The days where Financial institutions preyed on clients’ lack of knowledge to make sales are fast sailing. As such, one should appreciate the ever evolving relationship between media influence and investment behavior and leverage on rise of social media, to reach a greater base to educate..
Institutions who get this right would be positioning and gearing themselves to for the future, as they appeal more to consumer sentiments.
The Gen X and early Millennial still subscribed to products (policies/investments) with little to no knowledge and without understanding what they’re actually buying.
However, observing trends, when Millennials and Gen Z don’t understand policies, they hesitate to buy. This hesitation does not only disadvantage Financial Institutions but also leaves families exposed to sudden financial shocks.
It is therefore imperative for Financial Institutions to invest in Financial Literacy initiatives, to empower individuals in achieving financial well-being, making informed decisions, and navigate the complex financial landscape.
*Shali Nanghala is a financial literacy advocate
