INSTITUTIONAL FINANCIAL SUPPORT TO THE BANKING PUBLIC

Abstract

Individuals of varying ages and backgrounds encounter difficulties in managing their finances. This is visible through various races due to the income disparity that exists. The economic crisis that the world suffered through from 2008 further exacerbated an existing problem. South Africans who hold banking accounts (“the banking public”) did not know how to effectively manage their finances. Even if a member of the banking public were to take steps to actively do so, financial institutions do not provide adequate support. The regulatory framework has started making inroads in addressing this. Learning to budget and save; financial literacy, borrowing responsibly while servicing the debt, and seeking advice from professionals such as certified financial planners all fall within the ambit of effective management of finances. Steps taken can help alleviate poverty. Financial institutions should work through the value chain to assist the banking public that contributes to their bottom line.