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![Eleving Group launches a financial literacy platform](https://core.eleving.com/img/2022-12-Eleving_WEB_news-smart.eleving.com-960x720px.png?w=50&h=25&q=75&fit=max&blur=5)
Launching the financial literacy platform is a continuation of Eleving Group’s commitment to educating its clients about personal budget planning and making informed financial decisions. The platform is now live on the websites of the Group’s brands in Latvia.
According to the authors of the project, even though people’s understanding of financial issues is gradually improving, a large part of society still lacks basic knowledge about effective money management. This often leads to excessive spending, disproportionate and unreasonable loan commitments, financial stress, and poverty traps. Eleving Group has developed a financial literacy platform where anyone can assess the health of their existing loan commitments, evaluate whether new financial commitments would be a wise decision within their current budget, and find bits of advice on budgeting, debt management, savings, financial hygiene, and much more.
“This platform is part of our long-term strategy, where we have made consumer education on financial literacy one of our key focuses. Any financial service provider wants to work with educated and informed customers who understand the principles of money management and can critically assess the opportunities and risks of financial products. Financial literacy should not rest solely on the shoulders of consumers. It is also the responsibility of everyone involved in the field. By 2025, we are committed to promoting basic financial literacy through this tool to at least 500,000 people in the 14 markets represented by our Group. The launch of the platform in Latvia is only the first step,” says Arturs Cakars, Eleving Group Chief Corporate Affairs Officer.
The financial literacy tool is a test where anyone can assess their current loan commitments or calculate the financial opportunities for themselves and their household. In the “loan health check,” the user will have to answer a few simple questions, and the answers will be used to calculate an individual’s DTI score or debt-to-income ratio. Financial institutions consider this one of the most important factors when deciding whether to grant or refuse a loan. It is also an indicator that helps to assess the budget’s ability to withstand unexpected financial difficulties without losing the payment discipline. The test will also provide an estimate of the actual cost of living, savings, and cost coverage, i.e., how many months a person will be able to maintain their standard of living and cover their costs within their existing budget. Meanwhile, the opportunities assessment will indicate the person’s or household’s DTI score, actual cost of living, savings levels, and the potential amount of monthly commitments that the person or household could take on without significant risks to their budget.
In addition, the platform has been extended with a blog section with numerous valuable tips on budget planning, savings, debt management, reducing the impact of inflation on a personal budget, the cost of borrowing, credit rating, and other topics.
“One of the core values of Fintech Latvia Association members is responsible lending. This is the only way to promote the development of the industry while ensuring that the interests of consumers are respected. Financial literacy is one of the hottest topics in the industry and among regulators in recent years. It is essential to consider educating the public on these issues, so I believe that the financial literacy platform developed by Eleving Group is an excellent initiative that can serve this purpose,” adds Tīna Lūse, Head of the Fintech Latvia Association.
You can try the new platform yourself here: www.smart.eleving.com.