Financial capability amongst minority ethnic communities
The FSA planned to undertake the first-ever national survey of people’s financial capability. Financial capability concerns people’s day-to-day budget management skills, their understanding and use of financial products, their ability to seek and use advice and information appropriately, and their ability to plan ahead and make provisions for the future. The FSA developed a survey instrument and asked ETHNOS to test the instrument to ensure that it would not unwittingly “downgrade” the financial capability of people from minority ethnic backgrounds. To test the questionnaire, we carried out interviews with experts on financial capability amongst ethnic and faith communities, as well as “think aloud protocols” and post-completion interviews with lay people from various ethnic minority backgrounds. The research highlighted a range of factors which make ethnic minority households either less, more or simply differently financially capable compared to their white counterparts. The study led to recommendations in relation to survey design, fieldwork management, and data analysis and interpretation. The baseline survey has now been completed by 5000 people. It will be repeated periodically to assess changes in people’s financial capability.
Providing culturally sensitive financial information for Muslim consumers
Practising Muslims often have specific needs when it comes to financial services. ETHNOS helped the FSA assess Muslim consumers’ views about proposed disclosure documents designed to inform them of financial services and products that are compliant with Islamic (Sharia) law. Using product testing procedures, ETHNOS advised the FSA on changes on the format, style and content for the proposed disclosure documents to make information more accessible to consumers who want to compare different providers.
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