Global and local perspectives and challenges related to digital financial literacy were at the forefront of the International Conference hosted by the Central Bank of Cyprus (CBC), titled ‘Digital Financial Literacy: The Way Forward’, which took place on Friday, March 29, 2024.
The conference examined international trends in the field alongside the current landscape in Cyprus. Particular emphasis was placed on the need to strengthen financial literacy levels in the country—especially with regard to digital competencies—given the ongoing rise in digital transactions and their increasing significance in citizens’ daily lives.
In his address welcoming the conference, the President of the Republic, Nikos Christodoulides, stated that improving the level of financial literacy among our population and workforce will undoubtedly have positive ripple effects on economic growth, individual well-being, and the financial stability of the country. At the same time, the President announced that, in order to promote financial literacy, the Ministry of Education, Sport and Youth has planned the introduction of a financial education intervention programme, to be implemented nationwide across all third-grade lower secondary classes in the upcoming school year.
In his address, the Governor of the Central Bank of Cyprus, Constantinos Herodotou, noted that the findings of the latest nationwide financial literacy survey conducted by the Central Bank in cooperation with the OECD reveal a concerning reality that calls for immediate attention and collective action. He also emphasized that strengthening digital financial literacy is particularly important at a time when the digital revolution and technological innovation are redefining the way we manage our finances and conduct transactions. A clear example of this shift is the growth of digital banking transactions in Cyprus, which have increased significantly, reflecting the global trend towards a digital economy. Specifically, in 2023, the volume of electronic transactions reached 262 million, marking a 19% increase compared to 2022,” he added.
In her presentation titled ‘Financial Literacy – A Global Perspective,’ Dr Magda Bianco, Chair of the OECD/INFE (International Network on Financial Education), noted that Financial education helps individuals build greater financial resilience, manage their debts more effectively, and make sound investment decisions. At the same time, it benefits governments by reducing financial illiteracy, supporting the implementation of economic reforms, and helping to mitigate inequalities.
As part of his remarks during the conference proceedings, Professor Georgios Panos of Aristotle University explained that digital financial literacy constitutes a combination of knowledge, skills, attitudes, and behaviours essential for individuals to understand and safely use digital financial services.
The conference concluded with a roundtable discussion titled ‘Global Insights and Local Trends,’ moderated by Lena Cleanthous, Financial Literacy Coordinator at the CBC. She noted that, as in previous years, the Central Bank of Cyprus will continue to lead efforts to implement the National Strategy, in close collaboration with all relevant stakeholders.
The discussion featured contributions from Elena Miteva (Directorate for Financial and Enterprise Affairs, OECD), Andreas Milidonis, Professor of Finance at the University of Cyprus, Panayiotis Andreou, Associate Professor at the Cyprus University of Technology, andÉdouard Gomet (DG REFORM, European Commission). The panelists commented both on the initiatives being undertaken internationally on this particularly important issue and on Cyprus’s current position, as well as the further steps required going forward.
The conference was held as part of the Global Money Week, the annual global campaign that takes place each March, aiming to inspire people to acquire the financial knowledge needed to make sound financial decisions. The conference was held under the auspices of the Republic of Cyprus.