CBCS, UoC launch initiative to study how people manage money and improve financial wellbeing

GREAT BAY/WILLEMSTAD--The Centrale Bank van Curaçao en St. Maarten (CBCS) and the University of Curaçao dr. Moises da Costa Gomez (UoC) are establishing a special university position focused on helping people become financially stronger while also improving the way the financial sector responds to their needs.

The initiative, formally known as an extraordinary Chair in Financial Wellbeing, will bring together research, education and practical experience to better understand how people manage their money, what makes households and businesses financially resilient, and how banks, regulators and other financial institutions can contribute to a healthier financial system.

In practical terms, the initiative will look at questions many people deal with every day: how well people understand money, how they make financial decisions, how prepared they are for unexpected expenses or financial setbacks, and what can be done to help them become more financially secure.

At the same time, researchers will examine the role of banks and other financial institutions, along with financial supervision, regulation and the overall stability of the financial system.

Outgoing CBCS President Richard Doornbosch said the financial health of a country is closely connected to the way individuals and organizations handle money and the way the financial sector responds to their behavior.

“The financial stability of a country is strongly influenced by the individual behavior of citizens and organizations, how they handle their money, and by the way in which the financial sector responds to that behavior. A healthy interaction contributes to the financial wellbeing of both individuals and society as a whole.”

The university position is currently being established. For its first two years, it will be held by an experienced international professor who specializes in these areas.

During that period, as many as three postdoctoral researchers from Curaçao and St. Maarten will be given the opportunity to work and further develop under the professor’s guidance. The intention is to build local academic expertise so that, over time, the position can be continued by talent from within the region.

Research conducted through the initiative will not be intended to remain within the university. Findings and data will, where possible, be made publicly available through the UoC Research Center and could be used to help governments, financial institutions and other organizations improve policies and services.

The initiative will also connect research with real-life experience through education, training and the National Coalition for Financial Wellbeing.

That coalition will bring together government and private-sector organizations, financial institutions, community organizations and educational institutions. They will examine whether the findings from researchers can realistically be applied in society and, in turn, identify real-world financial problems that researchers could study further.

The work will initially focus on Curaçao and St. Maarten, but the initiative could eventually expand to Aruba, Bonaire, St. Eustatius and Saba.

The longer-term goal is to develop the initiative into a regional center for knowledge and research on financial wellbeing that can serve the Caribbean part of the Kingdom.

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