Regional Post Caucasus sat down with the team of Consumer Empowerment Center of Central Bank of Armenia to discuss Armenia’s journey towards financial literacy through their pioneering ABC Finance platform established by CBA.
Interview : Margarit Mirzoyan
Photo : Central Bank of Armenia
How would you assess the state of financial literacy in Armenia when you first launched ABC Finance and where are we today?
— The roots of ABC Finance date back to 2010, during a period of dynamic growth in Armenia’s financial system. The 2011 Findex data showed that only 17% of adults had accounts with formal financial institutions, while many relied on informal loans. This highlighted the urgent need for financial education and inclusion. In response, the World Bank conducted a diagnostic review in 2012, calling for stronger consumer protection, clearer financial information, and a coordinated approach to financial education. By 2014, Armenia made a significant step forward with the Financial Capability Barometer, which showed a Financial Capability Index of 44%. Only 18% of respondents were financially literate, and savings rates were very low. Many managed debt by taking on new loans, emphasizing the need for financial literacy programs. By 2019, the index had improved to 46.8%, reflecting progress. Saving and budgeting behaviours saw positive changes, but knowledge and skills in using financial services still needed attention. Today, financial literacy in Armenia continues to grow. New challenges, such as digital finance, require focus, and the needs of different groups, from rural communities to young professionals, drive priorities. With ongoing efforts, Armenia is steadily working towards a more financially informed and empowered population.
ABC Finance was established by the Central Bank of Armenia as a public resource for financial literacy. What led you to the decision to create this platform and how has it evolved since then?
—The decision to create ABC Finance was driven by a thorough evaluation of Armenia’s needs at the time, combined with insights from international practice, which showed the importance of public financial literacy platforms. The 2008 global financial crisis underscored that financial stability depends not only on the regulation and supervision of financial institutions but also on empowering consumers with the knowledge to make informed decisions. To address this dual need—strengthening both institutions and consumers—the Central Bank of Armenia launched ABC Finance.
Since its creation, the platform has undergone significant development. In 2017, the entire website was redesigned to enhance usability and align with evolving financial trends. The content is regularly updated to reflect new priorities, such as digital finance, long-term planning, and consumer protection. To stay relevant, we have embraced digital tools, introducing videos, interactive content, and even educational games, ensuring that the platform remains engaging and accessible to diverse audiences.
Today, consumer empowerment is a key pillar of the Central Bank of Armenia’s strategy. Through ABC Finance, we continue to build a financially informed population, leveraging innovative approaches to support Armenia’s financial stability and resilience.
What specific barriers to financial education you are working to overcome in Armenia?
— In Armenia, our primary goal in financial education is to promote financial well-being by addressing key challenges. Like everyone else, we too face certain social and cultural barriers that can sometimes hinder our progress towards greater financial well-being. To understand the root causes of these obstacles, we regularly conduct behavioral research, which informs our plans and actions. For example, like many countries, we face a “present bias,” where people prioritize immediate needs over long-term planning. This leads to low savings rates and a lack of preparation for old age.
Financial fraud is another growing concern, with only 32% of Armenians feeling confident in protecting themselves from scams and frauds. While seeking advice from others can be valuable, it is important to remember that what worked for someone else might not be the best fit for another person. Given the broad range of financial products offered by Armenian financial institutions, shopping around can be helpful on finding a better fit for one’s individual needs. To empower informed decision-making, we have developed a digital tool www.fininfo.am, where users can easily compare financial products and find the best offers tailored to their specific circumstances.
Additionally, over 300,000 Armenians are over-indebted, struggling to repay their loans. This highlights the urgent need for better financial planning and responsible borrowing education. Steps are now being taken towards this issue as well.
Could you give us an overview of ABC Finance—what key objectives does it serve for Armenian citizens?
— Behind ABC Finance and other financial education programs is a dedicated team with a clear mission: to equip Armenian citizens with the knowledge, skills, and behaviour needed for responsible financial decision-making and improved financial well-being.
To achieve this, we implement targeted programs for diverse groups. For example, we integrated financial education into school curricula, in the subjects like Me and the World Around Me, Mathematics, Algebra, and Social Studies. From 2017 to 2021, 9560 teachers from 1399 schools were trained to deliver this content effectively, and new textbooks infused with financial literacy concepts are being developed. Beyond schools, our efforts extend to rural communities. For instance, we introduced the handholding model, where trained individuals support participants for four months, helping them turn financial knowledge into lasting behaviours as research showed that classroom workshops are effective only in the short-run, but the result doesn’t remain high in the long run.
The ABC Finance website is a central hub for financial education. It offers resources on topics like loans, deposits, insurance, digital finance, and fraud prevention. The platform goes beyond static content, providing interactive tools such as calculators for pensions, deposits, loans, and salaries. Users can also play financial games, watch videos, and engage with content that makes learning both practical and enjoyable.
Our outreach does not stop at the website. ABC Finance actively engages citizens on social media platforms like Facebook, Instagram, YouTube, TikTok, and Threads, ensuring our resources are accessible to all and adaptable to their needs. Together, these initiatives make ABC Finance a key driver of financial literacy and well-being in Armenia.
Your platform combines educational materials, tools, and even games—how did you determine this format would best serve the users?
— The format of ABC Finance was determined through a blend of user feedback and international practice. We regularly engage with Armenian consumers, conducting focus group research to understand their needs, preferences, and challenges. This ensures that our offerings are relevant and practical for our audience.
In addition, we leverage global best practices through our active participation in international organizations such as the Organisation for Economic Co-operation and Development International Network on Financial Education, and Alliance for Financial Inclusion. By exchanging ideas and best practices with other countries, we can adapt successful strategies to Armenia’s context. For example, our decision to develop an e-learning platform, where users can take courses, complete tests, and earn certificates, stems from insights gained both locally and internationally. This project is a major initiative planned for this year, and we are optimistic about its potential.
By combining local insights with global knowledge, we have created a platform that engages users in a meaningful way, making financial education accessible, interactive, and effective.
Your slogan is “Finance for everyone”. How did you examine the specific needs of different demographic groups in Armenia to ensure the platform is truly accessible and useful for everyone?
— The Financial Education Program and its Steering Committee play a key role in guiding our efforts. Armenia’s Financial Education Program and its action plan, which is approved by the Government of the Republic of Armenia, has been implemented in two phases: the first from 2014 to 2019 and the second from 2021 to 2025. The program’s committee is made up of more than 30 state and private organizations, ensuring the interests and needs of different societal groups are represented.
Programs are developed collaboratively. For example, the Ministry of Education, Science, Culture, and Sports addresses the needs of schoolchildren and students, while the Ministry of Territorial Administration and NGOs highlight the priorities of residents in rural areas etc.
Additionally, we engage directly with consumers, gathering insights through research and program evaluations. An essential part of this process is the Financial Capability Assessment, conducted every five years. This study provides valuable data and deep insights, helping us continuously refine our approach to meet the evolving needs of Armenia’s population.
What role does ABC Finance play in the Central Bank’s broader strategy for improving financial literacy, and how do you measure its effectiveness?
— ABC Finance, representing the Consumer Empowerment Centre’s Financial Education and Inclusion division, plays a key role in the Central Bank’s strategy for improving financial literacy by directly contributing to its strategic goal of consumer empowerment. Our approach emphasizes supporting consumers in making informed financial decisions.
The centre measures its effectiveness through a two-pronged approach:
Macro-level assessment: Every five years, they conduct a “Financial Capability Assessment” to gauge the overall financial capability of the entire society, providing a broad overview of progress and areas needing attention. Financial capability includes financial knowledge, skill, attitude, and behavior.
Micro-level program evaluation: Individual programs are rigorously assessed, often using different methods as Randomized Controlled Trials (RCTs), Difference in Difference (DID), and other tools. Examples include an RCT evaluating financial education in schools, which revealed positive outcomes, particularly for STEM students and those taught by trained teachers, and another RCT in villages demonstrating the effectiveness of personalized “handholding” assistance in navigating financial matters. These program-specific evaluations inform decisions on program continuation and necessary adjustments.
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