The National Bank of Ukraine together with the Deposit Guarantee Fund and the National Securities and Stock Market Commission of Ukraine have developed the Financial Competences Framework for Adults (hereinafter, the Framework).
The Framework is a document that outlines the core competencies of adults aged 18 or over, in particular a set of knowledge, skills, abilities, and attitudes related to personal finance and consumption of financial services that form the basis for making informed financial decisions, as well as for sustaining and improving financial wellbeing.
The document was developed as part of the implementation of the Strategy of Ukrainian Financial Sector Development until 2025, with the aim to achieve the goals of the financial inclusion strategic direction.
This instrument was created to develop and improve financial competencies of Ukrainians, in particular by designing educational programs, training materials, and methodologies, organizing awareness-building events, and launching other initiatives aimed at the improvement of financial literacy and effective use of financial services by different target groups.
"Financial literacy is a competency that provides people with knowledge and practical skills required for personal development and ability to effectively use the financial services. It allows to sustain individual financial resilience in any circumstances. Development of financial literacy is one of the NBU’s key priorities, as financially literate citizens are a prerequisite for the provision of inclusive and secure financial services, which has a positive effect on financial stability – the focus of the regulator’s mandate. The Framework is the first document in Ukraine that clearly defines the knowledge and skills that will facilitate informed financial decision-making," said NBU Governor Andriy Pyshnyy.
The Framework is based on models of financial competencies developed by the European Commission and the OECD (2016), G20/OECD INFE Core Competencies Framework on Financial Literacy for Adults, European Union/OECD (2022), and Financial Competence Framework for Adults in the European Union, which were supplemented and adapted to the Ukrainian context.
Svitlana Rekrut, Managing Director of the Deposit Guarantee Fund, for her part, said that the financial resilience and wellbeing of Ukrainians are an integral part of Ukraine’s independence.
"It is essential that all Ukrainians, while having practical knowledge and skills in financial literacy, could both navigate the financial services market, making effective life plans, and consciously and actively engage in Ukraine’s reconstruction. Ukraine’s development and integration in the global community will depend on each of us. This is our personal responsibility to future generations," said Svitlana Rekrut.
The Framework divides the competencies into four sections, which are further split into topics and subtopics:
Section І. Money and Transactions
Section II. Planning and Managing Finances
Section III. Risk and Reward
Section ІV. Financial Landscape
Overall, the Framework covers over 630 financial competencies of adults: basic and core. For each competence, three dimensions are considered:
- awareness, knowledge, and understanding
- skills and behavior
- confidence, motivation, and attitudes.
"Ukraine’s financial system is keeping up with the times, implementing the best global practices. Technological progress and digitalization of all financial management processes are underway. Therefore, financial literacy is essential for all social groups. The Framework covers key aspects that will help the Ukrainian adult population improve their knowledge in the financial area, and rationally and effectively implement the acquired skills in managing their personal finance," said Head of the National Securities and Stock Market Commission Ruslan Mahomedov.
The Excel-format instrument for quick filtering of financial competencies will make it easier to use the Framework. With the help of special tags, educational program designers, financial literacy trainers, and practitioners will be able to filter out the required competencies, in particular by the following groups:
- digital financial competencies
- sustainable finance competencies
- financial resilience competencies
- essential competencies relevant to daily life, current or future financial wellbeing
- competencies relevant to the majority of the adult population.
The widespread practical use of the Framework is expected to facilitate the implementation of the state policy in the area of financial literacy and financial inclusion, as well as improve the quality of educational initiatives to deepen knowledge and develop skills for effective management of personal finance.