Finance: Are the French still less competent in the matter?

A recent survey conducted on behalf of the Organisation for Economic Co-operation and Development (OECD) revealed that France has made a slight progress in financial literacy. However, compared to the Germans, the top performers, the French are to be pitied. Details !

Financial Literacy, France’s Poor Score

In mid-November, the French Financial Markets Authority (AMF) unveiled a significant advance for France in terms of cryptocurrency adoption. The report spoke of an “individual crypto-asset ownership rate that has risen to 9% of the French population “.

Although modest, this adoption rate far exceeds that of El Salvador. The country currently has a rate of 1.72% of its population in possession of Bitcoin (BTC) and cryptocurrencies.

However, this gap is not yet enough for France to win any medals.

Indeed, a recent publication by the Bank of France highlights less than flattering figures for the French in terms of financial literacy. Here is an excerpt from the report :

“With a total score of 12.45/20 (i.e., 62.25%), French adults aged 18 and over have a financial literacy near the OECD average, improving since 2021 (12.17/20 or 60.85%). France ranks 14th out of 39 countries participating in the OECD survey. “

Financial Knowledge Score

While the French achieved a score of 4.58/7 in 2021, this year 2023 has seen a clear improvement to reach 4.61/7. This section specifically concerns understanding the “impact of inflation on purchasing power, the relationship between risk and return “. Nevertheless, the investigators are unanimous about the lack of knowledge of simple or compound interest rates mechanisms among the French.

Attitude Score

It particularly indicates the French relationship to money. According to the survey, they are no longer inclined to spend recklessly or save for the future. The progress is quantified at 2.35/4, which is +0.13 point compared to the 2021 assessment.

Behavior Score

This score, which has seen an increase of 0.12 point since 2021, now at 5.49/9, quantifies French behavior in practical situations.

“The French adopt more financially savvy behaviors: 76% of them monitor their financial situation and 65% claim to always make thoughtful purchases. “, can be read on the Bank of France’s website.

However, it is worth mentioning the low rate of people setting long-term financial goals or preparing for retirement.

A pro-crypto country leads the way

The survey conducted by the CSA institute shows Germany in first place with a score of 79%. It is well known that this country has made real advances in cryptocurrency adoption, especially among institutional investors.

As a reminder, a German banking giant, Deutsche WertpapierService Bank AG, presented a unique project favorable to bitcoin transactions last March. It is about the wpNex platform, where approximately 1,200 commercial banks can embrace the emerging technology.

The time for catch-up has thus sounded for French financial institutions.