This in turn enhances the potential for the industry to provide financing to households and enterprises thus contributing to the economic growth process. Another instance where efficiency and potential of the industry can be enhanced is migration from paper-based payments to electronic payments. This would provide significant benefits to all parties as it provides a more efficient and reliable payment instrument and it attracts lower costs, increased convenience and a higher level of security. In promoting financial literacy, several issues need to be addressed. One of the most critical issues is the apathy towards information. Irrational behavior, the inability to comprehend complex information, the perception that information is unreliable, or more often than not the reluctance to invest the time to study the information, are all reasons that increase such apathy. In addressing financial literacy, the information provided to consumers needs to be simple, brief, contextualised to the needs of the consumer and delivered at the right time. An example is providing special, inclusive programmes for financially excluded groups that are at different levels of development and that face different challenges in managing their financial affairs. The emerging best practices in enhancing financial literacy clearly suggest that an integrated and coordinated delivery of financial literacy initiatives is needed to address the issues highlighted above. This requires a comprehensive approach involving central banks, government ministries, NGOs and corporations to work collaboratively to promote financial literacy. Attention needs to be given to greater strategic focus on the outcomes to be achieved by the financial literacy programs.
The main responsibilities of the Central Bank includes the formulation and implementation of monetary policy, ensuring the soundness and stability of the banking system, and finally ensuring the integrity and reliability of the payments systems. In all these areas, the actions of the Central Bank have direct implications on the business community and the public at large. The ultimate aim of the policies are to make the economy strong, and to ensure the health of the financial system that is vital to supporting the economic growth and development process. Knowledge of what the Central Bank does and the reasons for its actions are essential for the efficient functioning of the financial markets and the effectiveness of the policy initiatives. In all these areas, the behavior of businesses and consumers at large are important in determining the final outcome. Having the knowledge and understanding of the issues would better equip consumers to manage their financial matters and to make well informed decisions regarding their own finances. In addition, it would also contribute to the soundness of the banking system and the efficiency of the payments system. In this current environment, the issue of financial literacy from these perspectives has become more urgent, particularly in the emerging market economies of Asia, where household consumption is becoming an important driver of growth. The expanding cumulative domestic market in Asia is becoming massive, a factor that has been important in facilitating intra-Asian trade and thus driving the economic integration of the Asian region.