Financial Crime World

Boosting Financial Capability for Financial Inclusion and Crime Prevention in Senegal

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Senegal has identified financial capability as a key policy priority to promote financial inclusion and ensure financial stability. This concept, defined by the World Bank as the capacity to act in one’s best financial interest, is critical in achieving this goal.

What is Financial Capability?

Financial capability encompasses not only knowledge and literacy but also attitudes, skills, and behavior when it comes to understanding, selecting, and using financial services. It is closely linked to access to financial services that meet individual needs, a crucial aspect of promoting financial stability and functioning financial markets.

Importance of Financial Capability

  • Those who make sound financial decisions and effectively interact with financial service providers are more likely to achieve their financial goals, mitigate risk, improve household welfare, and support economic growth.
  • Boosting financial capability is a complementary policy objective aimed at supporting governments’ financial inclusion and consumer protection agendas.

Surveys as Diagnostic Tools

To better understand the financial capabilities of Senegalese citizens and identify areas for improvement, policymakers have turned to surveys as diagnostic tools. These surveys help pinpoint vulnerable segments of the population that require targeted interventions.

Report Structure

  • The report presents key findings and recommendations across three main areas: financial inclusion, financial capability, and financial consumer protection.
    • Chapter 1 provides an overview of the financial inclusion landscape in Senegal.
    • Chapter 2 explores levels of financial capability among Senegalese citizens, focusing on their financial knowledge, attitudes, and behaviors.
    • Chapter 3 delves into the relationship between financial inclusion and financial capability, examining how access to financial services affects individuals’ ability to make informed financial decisions.
    • Chapter 4 investigates whether financial products used by financially included individuals are effectively meeting their needs.

Promoting Financial Capability for Crime Prevention

By promoting financial capability, policymakers in Senegal aim to prevent financial crime and promote a more stable financial system.