SEC intensifies efforts to boost financial literacy

MANILA, Philippines — The Securities and Exchange Commission (SEC) is intensifying efforts to address gaps in understanding of financial management among Filipinos.

SEC chairperson Emilio Aquino said a financially literate public is key to unlocking more opportunities for growth in the capital market and in turn, the overall economy.

Citing a 2021 Financial Inclusion Survey of the Bangko Sentral ng Pilipinas (BSP), the SEC said that only two percent of Filipinos correctly answered six basic financial literacy questions.

The commission said the result of the BSP survey is consistent with the finding of the World Bank that only a quarter of adult Filipinos are well informed on basic financial concepts.

It added that a June 2024 research paper published by the BSP showed that middle-aged and senior individuals have lower financial literacy levels compared to younger adults.

In the study, the BSP emphasized that greater financial literacy leads to improved financial decisions, thereby increasing the chances of participation in activities that build assets and accumulate wealth, such as investments.

“This underscores the urgent need to address gaps in the knowledge and understanding of financial management, including financial products and investment strategies, to prevent more people from falling into investment scams,” Aquino said.

Last year, the SEC said the Philippine Stock Exchange reported a 21.2-percent increase in retail investor participation, signifying growing interest of Filipinos in investing, particularly through online trading platforms and other financial technology innovations.

However, it said that the country also continued to see several fraudulent investment schemes perpetuated through social media and other digital platforms.

In 2023, the SEC issued 129 advisories and warnings against entities and individuals operating without the required licenses from the commission.

“As an investor champion, the SEC is leading the campaign for financial literacy by equipping the public with knowledge on how to secure their future through sound financial management and smart and sustainable investments,” Aquino said.

As part of its continuing efforts to empower Filipinos to make smart financial decisions, the SEC has launched a weeklong investor fair at its headquarters in Makati City.

The week-long celebration will feature a discussion on smart financial practices such as handling one’s allowance, earning one’s own income, building up savings, pouring money into investments and creating a retirement fund.