Assessing Financial Literacy in Rural Laos
This report shows the results of a baseline survey which was conducted by the project “Microfinance in Rural Areas - Access to Finance for the Poor” (AFP) in the southern provinces of Champasak, Salavan, and Savannaketh in February 2014. The survey contained questions about knowledge and awareness of financial concepts and institutions as well as questions about behavior in financial issues such as credit taking and saving.
The survey clearly shows that financial institutions do not reach out into rural areas as the usage of financial services is generally low. The population is thus financially excluded and has very limited experience in dealing with financial institutions and services.
The survey shows that there is a general understanding of basic financial institutions and financial concepts such as credit and saving. There is, furthermore, a general awareness of the risks associated with credit taking.