Why Communication Matters in Financial Literacy

Our partner, Center for Financial Inclusion (CFI), provide research into communication styles for financial concepts

How we communicate matters.​

This was central to how we went about developing Levela , Prudence Foundation’s new financial education app for young adults.

We needed to build a platform that was inclusive – that could speak to young adults on their terms, using language and references that were relatable to them.

Our audience-centric approach was backed by research developed in partnership with Center for Financial Inclusion (CFI) at Accion, an independent think tank dedicated to advancing inclusive and responsible financial systems globally.​

CFI has just released the study “What Works in Financial Education? Testing What Improves Comprehension in Adult Learning".

This report examines how financial education can be designed and implemented to improve comprehension of financial concepts and focuses on a single under-examined mechanism: communication style.

While communication styles may encompass a broad range of elements, including tone, visual design, and message framing, this research defines “communication styles” as the specific messaging approaches used to convey financial information and examines their impact on audience comprehension.

This study evaluates three distinct communication styles – instructional, metaphoric, and behavioural– using a randomised survey conducted across four countries: the Philippines, Thailand, Vietnam, and Zambia.

Key insights from the report include:

• Intentional use of communication styles. Nuanced and deliberate use of different communication approaches leads to stronger comprehension outcomes.
• No single winning communication style. While no single style proved best in the aggregate, matching style to concept meaningfully improved comprehension by 10 to 17 percentage points in the cases where fit mattered most.
• No one-size-fits-all approach. Rather than searching for a single optimal communication style, providers may achieve stronger outcomes by deliberately building a repertoire of communication styles and aligning them with the types of concepts being taught.