Financial literacy is essential to inclusion and economic well-being and is included as a sub-goal in some of the United Nation’s Sustainable Development Goals. The global financial landscape is complex, inducing a variety of challenges for individuals, especially in the areas of financial planning and decision-making. Financial illiteracy leads to misinformed investment decisions, financial instability, stress and a low quality of life. A myriad of financial information is available to individuals, such as financial statements from public companies to monthly press releases from the South African (SA) National Treasury that highlight the government’s revenue, expenditure and borrowing. Nevertheless, a lack of understanding hampers individuals from accessing and effectively exploiting available financial information. Alternate methods of conveying financial information are vital. Recent advancements in machine learning (ML) and visualisation techniques could potentially address the financial literacy problem by presenting financial data in a visual and comprehensible manner. This paper presents the design of a financial visualisation platform that uses ML techniques to render financial information from organisations in the SA apparel retail industry. The design science research methodology was used in the design process. Financial Key Performance Indicators were used as inputs in the ML algorithms, and a web-based dashboard, created using Plotly Dash Python libraries, enabled user interaction and parameterisation. The tool can be a proof-of-concept for financial and non-financial users to gain insights into an organisation’s financial performance and support financial decision-making in areas such as investment.

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Bridging the Financial Literacy Gap: Machine Learning-Powered Visualisations for Non-financial Users

  • Kundai Chirimumimba,
  • Ifeoluwapo Fashoro

摘要

Financial literacy is essential to inclusion and economic well-being and is included as a sub-goal in some of the United Nation’s Sustainable Development Goals. The global financial landscape is complex, inducing a variety of challenges for individuals, especially in the areas of financial planning and decision-making. Financial illiteracy leads to misinformed investment decisions, financial instability, stress and a low quality of life. A myriad of financial information is available to individuals, such as financial statements from public companies to monthly press releases from the South African (SA) National Treasury that highlight the government’s revenue, expenditure and borrowing. Nevertheless, a lack of understanding hampers individuals from accessing and effectively exploiting available financial information. Alternate methods of conveying financial information are vital. Recent advancements in machine learning (ML) and visualisation techniques could potentially address the financial literacy problem by presenting financial data in a visual and comprehensible manner. This paper presents the design of a financial visualisation platform that uses ML techniques to render financial information from organisations in the SA apparel retail industry. The design science research methodology was used in the design process. Financial Key Performance Indicators were used as inputs in the ML algorithms, and a web-based dashboard, created using Plotly Dash Python libraries, enabled user interaction and parameterisation. The tool can be a proof-of-concept for financial and non-financial users to gain insights into an organisation’s financial performance and support financial decision-making in areas such as investment.