Cyprus uniting against financial illiteracy

As a member of the Scientific Advisory Committee of the Cyprus Financial Literacy and Education Commission (CyFLEC), Adele Atkinson, Professor of Practice at CHASM, was amongst the senior academics and experts at a recent International Conference on Financial Education held on 13 March in Nicosia, Cyprus . The event, which was live streamed, featured a key note speech by the President of the Republic of Cyprus, H.E. Nikos Christodoulides, as well as opening remarks from the Governor of the Central Bank, the Vice Chairman of the Cyprus Securities and Exchange Commission (CySEC) and the Minister of Education. The conference demonstrated that, from the highest level, leaders in Cyprus are making firm commitments to improve the financial literacy and wellbeing of the population, and there is widespread willingness of senior policy makers, practitioners and others in Cyprus to work together on a strategic approach.

Following the President’s address, Adele set the scene for a discussion on international experiences of financial education, and contributed to a panel discussion. Expert comments were provided by Maria Demertzis, Chief Economist for Europe at The Conference Board Europe and a European University Institute affiliate; Alexander Michaelides, Professor of Finance, Imperial College Business School; and Dennis Philip, Professor of Finance, Durham University Business School.

Over the course of two days, Professor Atkinson and other members of the Scientific Advisory Committee also had in-depth meetings with the Governor of the Central Bank and the Vice-Chairman of CySEC, as well as Senior Director of the Economic, Statistics and Financial Stability Division of the Central Bank, George Kyriacou, and the leads of the National Strategy workstreams, and contributed to two further events.

Adele chaired a stakeholder workshop which included expert contributions from Professors Michael Haliassos and Dennis Philip. Referring to recent CHASM research on financial inclusion, undertaken in collaboration with the Financial Inclusion Commission, Adele explained the importance of tackling financial exclusion alongside financial literacy. Stakeholders discussed the importance of combining financial education with advice for various groups, including low-income households, those with problem debt, and people who may be tempted to invest on the basis of social media posts or other non-regulated recommendations.

Additionally, with Leonidas Kyriakides, Professor of Educational Research and Evaluation, University of Cyprus, Adele contributed to a workshop with teachers, chaired by Dennis Philip. The workshop drew on international experience and examples to provide teachers with an opportunity to reflect on how best to provide financial education in schools, particularly given the diverse student population and limited time to cover core principles.

Professor Atkinson further reflected on the event,

“We have heard repeatedly over the last few days about the good and bad influence of social media, especially on young people, the importance of the tech sector to Cyprus, the desire to encourage investment, and the worrying appetite amongst younger generations for ‘get rich quick’ schemes. As the people of Cyprus navigate the incentives and risks in a way that maintains or improves their financial wellbeing, they will benefit from a strategic approach that ensures:

• information, education, and guidance that is reliable, unambiguous, and readily available – i.e. financial literacy and financial advice.
• access to appropriate products and services that allow them to make operate within digital finance world in a way that is consistent with their risk tolerance – i.e. financial inclusion
• protection from unscrupulous actors and poorly designed products and services – i.e. regulation.

Fortunately, Cyprus also recognises the importance of tailoring support to particular groups within the population. Many governments, including in the UK, would benefit from such an integrated approach.”