Financial literacy in Flanders : a new role for KBC in financial education

Abstract

The purpose of this research thesis is to identify challenges in Flanders with regard to financial literacy and how KBC could further support financial education in Flanders. This research uncovered challenges in the financial literacy levels among business owners of micro, small and medium sized enterprises in Flanders and possible solutions for KBC to support financial education for entrepreneurs. A literature review has shown that little is known about the financial literacy levels of business owners of MSMEs in Flanders. A pilot study was organized to assess whether there is room for improvement in the financial literacy levels of these entrepreneurs. The pilot study used the 2020 version of the OECD/INFE survey instrument to measure the financial literacy of MSMEs. The pilot study has identified 3 targets groups where financial literacy can be improved: female entrepreneurs, young entrepreneurs and entrepreneurs with more than 10 years of experience as an entrepreneur. This research has illustrated that financial education for business owners of MSMEs matters, both for KBC as for the customers. The ideas in this research project were designed and evaluated using the strategic forecasting and scenario planning methodology with a group of 6 domain experts within KBC. This research identified many drivers that require a continued focus on improving financial literacy in Flanders. Two concrete strategies to support financial education of MSMEs are introduced in this research. This research also recommends the start of a broader study of financial literacy among entrepreneurs in Flanders to challenge or confirm the findings of the pilot study in this research paper and to understand why some target groups score lower than average. Thanks to this research, policymakers at KBC are now more aware of specific challenges in the field of financial literacy. After this research, there is a relevant why, new target groups have been identified and potential strategies have been developed for KBC to reinvent its role in financial education in Flanders.