Analysis of Financial Literacy Levels Using the OWA Operator: the Case of Boyacá, Colombia
Abstract
The primary objective of this research is to analyze the level of financial knowledge of residents in the Department of Boyacá. For this purpose, we carried out descriptive and hybrid analyses using the ordered weighted average (OWA) aggregation operator from three perspectives: the habit of saving, the use of financial services, and the improvement of financial education. The research considers three fundamental concepts of basic financial literacy: compound interest, inflation, and risk diversification. In the same way, we considered the methodology of the Superintendencia Financiera de Colombia [Financial Superintendence of Colombia] to use concepts in this environment that allow for contextualization in the face of questions on the national financial market. For this purpose, the study sample is determined probabilistically by provinces, corresponding to 1914 units; and the five questions that allow providing a reliable approximation of basic financial knowledge are presented. The findings show that people from the Department of Boyacá have difficulty understanding the ability to diversify and differentiate risk, which affects the level of awareness and responsibility when making financial decisions. In conclusion, we highlight that the weakness in financial knowledge restricts the development of financial habits that allow granting greater empowerment to people. Thus, it becomes pertinent to implement action plans that result in public-private alliances in accordance with the National Strategy for the Economic and Financial Education in Colombia.
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