Provident Expands Cooperation with Interchurch Aid

Developing financial literacy and self-care is of paramount importance in improving the quality of life, especially in social groups where adults, even if they have their own income, lack financial security. The Hungarian Interchurch Aid organization (HIA) and Provident Financial Ltd. have been working together as strategic partners for two years now to give as many families in need as possible the chance to improve their living conditions. The agreement was signed on October 16.

According to the statement released, Provident makes it a priority for all citizens to have access to the financial literacy/education they need to make informed decisions about their future. However, according to the company's survey, three quarters of the Hungarian population live month-to-month and, partly due to a lack of financial literacy or savings, many people do not have the means to deal with unexpected life situations.

"In Hungary, 6% of the adult Hungarian population, around half a million citizens over 18, are excluded from the credit market. We also want to help the most vulnerable groups in Hungarian society to catch up by making them visible again in the financial services market together with the OED, by providing them with knowledge and raising their financial awareness in the hope of a better life," Viktor Boczán, the CEO of Provident Financial Ltd. said.

The Hungarian Interchurch Aid and Provident Financial Ltd. launched financial awareness training in eight municipalities in 2023, which will be expanded to further ten locations from 2024. Members of social groups, most of whom are low-educated and low-income, can thus avoid serious situations such as the debt spiral. As a first step in the cooperation, Provident staff will provide training on key financial basics – including taxation, responsible borrowing, savings and family budgeting – to HIA staff, who will then transfer the knowledge gained through local training programs for the social groups concerned.

In the framework of the strategic partnership between the HIA and Provident, the 'Living Well - Step by Step' initiative will continue, with an application for financial support for people who have made a difference in their lives and are now able to live independently again, in the transitional homes of families in HIA's care.

In recent years, the organization has launched a 'Little garden' program in 11 municipalities in Northern Hungary, focusing on self-care and work socialization, to help participants increase family savings through home-grown fruit and vegetables.