Financial Literacy in Refugees Settlements

Abstract

We present the first empirical evidence on the impact of a financial literacy training (FLT) program on financial knowledge and the adoption of digital financial services (DFS) among refugees living in Uganda. The program was a high-intensity intervention targeting households already receiving food assistance in the form of cash. Using a Difference-in-Difference approach, we show the program significantly boosted financial knowledge. However, its impact on using DFS, like making digital transactions, was limited. Our key takeaway is that, while high-intensity programs work well in some contexts, they may not lead to substantial DFS adoption among refugees within a short timeframe. Further research is needed to optimize financial inclusion strategies for refugees and similar vulnerable populations.

Keywords: Refugee economies, Humanitarian aid, Cash transfers, Financial Literacy Training (FLT), Digital Financial Services (DFS).