Flore-Anne Messy - 2014 Conference on Global and European Trends in Financial Education in Istanbul


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This presentation by Flore-Anne Messy was made during the 2nd roundtable at the High-level Conference on Global and European Trends in Financial Education held on 22-23 May 2014 in Istanbul, which explored the role(s) of the private and not-for-profit sectors in financial education, financial literacy and innovation for young people and financial education for migrant workers and their families. Find out more at http://www.oecd.org/daf/fin/financial-education/2014-conference-global-european-trends-financial-education.htm

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Flore-Anne Messy - 2014 Conference on Global and European Trends in Financial Education in Istanbul

  1. 1. ROLE OF PRIVATE AND NON-FOR PROFIT STAKEHOLDERS IN FINANCIAL EDUCATION OECD/INFE GUIDELINES High-level conference on global and European trends in financial education 22-23 May 2014 - Istanbul, Turkey Flore-Anne Messy, OECD Executive Secretary of the International Network on Financial Education (INFE)
  2. 2. 1 • Importance and challenges of the involvement of private and non-for- profit stakeholders in financial education 2 • The OECD/INFE Guidelines for private and non-for-profit stakeholders in financial education Outline
  3. 3. Financial Education : The role of private and non-for-profit stakeholders Stages of the financial education strategy Design of the national strategy Implemen- tation Develop ment of tools Support Evaluation and research 3
  4. 4. The challenging nature of financial education Financial education is a public good. But investment pays off in the long term Adequate and sustainable : based on evidence and evaluated A long process : results may be apparent only in the long run In consumers’ interest (unbiased): help consumers understand their financial needs and act upon them Of high quality : in order to promote behavioral changes Fair and equitable : for all and especially vulnerable groups
  5. 5. The role(s) of private and non-for-profit stakeholders in financial education is essential but…. Key benefits • Expertise on financial and/or education issues • Expertise in marketing/ communication • Reach and proximity to consumers • Resources & appetite Challenges to be addressed • Conflicts of interests • Focus on short-term initiatives • Some consumers may be left out • Non-coordinated initiatives • Evaluation? 5
  6. 6. Mapping of existing practices and development by the INFE in 2013 Approval of the INFE for public consultation in Oct. 2013 Public consultation from Nov. 2013 till Feb. 2014 Expected approval at the INFE rechnical committee meeting on 21 May Dissemination and possible transmission to G20 3. Addressing these challenges: OECD/INFE Guidelines for private and non-for-profit stakeholders in financial education
  7. 7. Introduction I. Scope and definitions II. Guidelines A) Framework B) Key criteria III. Compliance The Guidelines : Structure
  8. 8. I – Scope and definitions : A wide range of stakeholders • Banks and financial institutions • Microfinance institutions • Agents and intermediaries 1. For-profit institutions providing financial services • Private service providers doing financial education on behalf of other organisations • Consultancy firms 2. For-profit institutions delivering financial education for a business • Employers, industry at large • Telecomunication companies- mobile banking 3. Non-financial for-profit institutions • Industry association of banks • Foundations • Financail ombudsmen 4. Not-for-profit organisations with a link to the financial sector but no direct commercial interest • NGOs, educational centres, • trade unions; consumer associations 5. Not-for-profit organisations with an interest in financial education 8
  9. 9. I - Various modalities of involvement of private and non-for-profit stakeholders : Integrated coordinated approaches • Consulted or full participation (Australia, Brazil, the Netherlands) • Role of industry associations The preparation and development of the NS framework • Responsibility for implementation (Brazil) • Mandatory provision of financial education (Indonesia, South Africa) • Public private partnerships for dedicated projects (Malaysia, Singapore) Involvement in the implementation of the NS framework • Mandatory contribution to financial education (UK) • Voluntary contribution for projects or the all NS (New Zealand) Provision of financial support 9
  10. 10. Association of banks and others develop their own financial education activities with little relation to the national framework Different private entities (including NGOS) develop their own financial education initiatives globally or nationally Active monitoring and development of codes of conduct is recommended I - Various modalities of involvement of private and non-for-profit stakeholders : Non-coordinated approaches
  11. 11. A) Framework 1) Co-ordination between public, private and non-for- profit stakeholders 2) Managing potential conflicts of interest and other shortcomings 1. (financial and in-kind) support for governmental strategies and initiatives 2. Indirect involvement of financial institutions (role of industry association) 3. Monitoring through -voluntary or compulsory- codes of conduct 4. Distinction between commercial and educational activities • no promotion of products combined with financial education • conflict of interest are disclosed and managed • educational resources are distinguished from commercial material II – Guidelines
  12. 12. B) Key Criteria Applying to resources and trainers : 1) Objectivity • Definition : balanced, impartial unbiased and not linked to commercial priorities • Use of logo limited within national circumstances • Staff involved in financial education do not carry marketing activities 2) Quality of resources and trainers 1. Tailored to national circumstances 2. Appropriate to the target audience 3. Fair – addressing all segments of the population 4. Accurate, complete, up to date and of high quality 5. Easily accessible 3) Monitoring and evaluation II – Guidelines
  13. 13. • Awards, accreditation, certification, and licensing systems of programmes and providers establishing the criteria and modalities to deliver financial education • Monitoring and compliance mechanisms to be developed by public authorities III – Compliance
  14. 14. Thank you Flore-anne.messy@oecd.org www.financial-education.org