1. COMBINING FINANCIAL EDUCATION AND
CONSUMER PROTECTION IN
ADDRESSING THE NEEDS OF
VULNERABLE GROUPS
THE OECD/INFE GUIDANCE
OECD/Thailand Seminar on Financial Literacy and Inclusion in Asia
16/17 December, Bangkok
Flore-Anne Messy
Deputy Head, Financial Affairs Division, OECD
Executive Secretary
International Network on Financial Education

2. 1
• Global context and rationale
2
• Challenges and identified needs of
vulnerable groups
3
• Existing OECD/INFE instruments
4
• The guidance and implementation tips
Outline

3. Financial empowerment trilogy :
Global recognition
Financial
Education
Financial
Consumer
Protection
Financial
Inclusion
G20 (2010) Principles
for Innovative
Financial Inclusion
G20 (2011) High-Level
Principles on Financial
Consumer Protection
developed by the OECD
OECD/INFE(2012)
High-Level Principles on
National Strategies for
Financial Education

4. Thesituation
Worlwide more than 2bn
individuals are
financially excluded
Fewer than 60% with a
bank account in Asia
(only 30% in South Asia)
Low levels of financial
literacy, confidence
motivation
These levels are related
to levels of income
FCP requirements
remain uneven
Thetrends
Increased access to
financial services
More needs for financial
services & investment
• Demographic evolution
• Social trends
• Uncertain economic situation
• Environmental developments
More transfer of risks
•To individuals/families, micro
& small entrepreneurs
•Due to shrinking solidarity and
welfare/corporate benefits
Global and Asian challenges to financial empowerment
call for an integrated and tailored approach

5. Financial education
(OECD/INFE surveys and Principles)
Youth
Women
Migrants
Low
income/education &
remote areas
Elderly
Microentrepreneurs
Financial consumer
protection (principles)
low income
less experienced
Globally identified vulnerable groups of the population
Recognised
by G20
Leaders in
2013

6. The overall Framework (2012)
OECD/INFE High-level Principles
on National Strategies for Financial Education
General
instruments
•2005
Principles and Good
practices on Financial
Education and Awareness
•2014
OECD/INFE Guidelines for
private and civil
stakeholders in financial
education
Sectoral Good
Practices
• 2008
2 Good Practices for
Financial Education relating
to Private Pensions &
for Enhanced Risk
Awareness and Education
on Insurance issues
•2009
Good Practices on Financial
Education and Awareness
relating to Credit
Methodological
tools
•2011
High-level Principles for the
Evaluation of Financial
Education Programme
• 2013
Toolkit on measuring
Financial Literacy and
inclusion
Target Audiences
•2012
OECD/INFE Guidelines
for Financial Education in
Schools
•2013
OECD/INFE Policy
guidance on addressing
women’s and girls’ needs
for financial education
10 OECD/INFE policy and practical instruments
to be consolidated in 2015

7. 2012
Evidence &
OECD Working
paper on
financial
education to
promote
financial
inclusion
2013/14
Development of
the guidance by
the INFE
subgroup on
FE for FI
Oct.2014
Submission to
the G20/OECD
Task Force on
FCP
2015
Submission to
the GPFI
Implementation
in countries &
feedbacks
The Policy Guidance on Financial Empowerment
for Vulnerable Groups : Process

8. Additional
effort
needed for
vulnerable
groups
They are
less
resilient
They risk a
downward
spiral of
poverty
They may
be more
easily the
victims of
fraud &
abuses
They often
lack
confidence,
motivation,
literacy,
access and
resources
Rationale for the Guidance

9. Financial inclusion
Financial education
Financial consumer protection
G20/OECD Definitions
Financial
empowerment
the provision of financial education, opportunities and
guidance to make financial decisions and use suitable
financial services within a protective and enabling framework
to improve financial wellbeing
Vulnerable groups
High levels of social and/or
financial exclusion
Limited resilience
to negative events.
Individuals, households
and entrepreneurs
Definition & Scope

10. I) Enabling framework for financial
empowerment
II) Identifying the needs, barriers and
preferences of vulnerable groups
III) Offering good practices and
effective/innovative approaches
Objectives and structure

11. Integrate financial education, FCP and financial inclusion
policies, and specifically identify additional efforts needed for
vulnerable groups
Develop wellbeing indicators and targets and identify the role
of financial empowerment
Involve stakeholders in design, development and
implementation (taking into account OECD/INFE guidelines for
non-governmental stakeholders)
Ensure the framework is sustainable, and evaluate policies and
programmes to ensure efficiency
I) An enabling framework

12. Integrating FE & FCP
• Indonesia : FCP mandate of the
FSA which also involves FE
• India : overall FI objectives – FE
and FCP as part of it
• US (FPCB)
• FCP and FE are combined
• Research is harnessed in both
workstream
• Ongoing surveys to determine
financial wellbeing
Role of stakeholders
• Indonesia – Financial institutions
to provide FE and report
• India : state banks to have FE
centers in big villages
• Partnerships in Malaysia on
projects
• Importance to apply the
OECD/INFE guidelines when
involving private and non-for-
profit stakeholders
• Role of the industry in fair
treatment of consumers (e.g.
Brazil – credit for CCT recipients)
Examples of enabling environment

13. Use evidence to identify target groups in a particular country
By level& stage of financial
inclusion
By other demo, socio, eco
factors : low income, young,
informal workers, the elderly,
women, migrants, ethnic
minorities micro and small
entrepreneurs, rural
inhabitants.
By barriers to financial
access or social inclusion
(no internet connection,
remote location)
Use data and other sources to identify their needs and
preferences
National and
regional/global
quantitative data
qualitative surveys
research
Identify effective delivery mechanisms
Map existing
provision
Monitor provision
Evaluate initiatives
Share findings through
global fora
(e.g. INFE, GPFI)
II) Identified vulnerable groups, their
needs, and the barriers they face

14. Quantitative :
• South Africa – survey using INFE identify
groups at risks
• Japan : development of core competencies
• Internationnally : PISA FL – highlight the
particular needs of young people from
immigrant origins in a range of countries
Qualitative :
• Mexico – mystery shopping- inadequate
information and advice for vulnerable groups
• UK – Findings of the FCA on abuses and
fraud used to developed training and
redesign FCP rules – identify groups at risk in
the case of investment (elderly male)
Sharing & disseminating :
the OECD/INFE global platform of
evaluated programmes
Examples- developing evidence to support
policies and practices

15. • Financial products are suitable and accessible to vulnerable groups
including MSMEs (possibly developing digital technologies to ensure
accessibility- booming mobile penetration)
• KYC requirements are also adapted or mechanisms are in place to
ensure vulnerable groups can meet them
• Data and confidentiality of information is protected
Harness FCP to
ensure that it is
proportionate to the
risks and the
population involved
• Tailored and understandable : especially fees, risks and benefits of
products should be made easy to understand - using local languages,
visual representations
• Easily comparable
Provide information
and advice that is
• in an affordable and accessible way
• regardless of barriers such as language or geography.
Make it possible to
complain
III) Good practices and effective approaches:
Harnessing financial consumer protection

16. • using multi-media campaigns also adapted to vulnerable groups
Develop trust and awareness on available products and
on rights & responsibility of consumers
• Start early and for all
• Repeat throughout life : Key changes in family life and location
• Alongside supply- approaches and market innovations
• Be adapted to the stage of FI of vulnerable
• Be adapted to the level of FL and their preferences
Improve financial knowledge, motivation and skills
• Leverage on existing channels
• Local community, educational pathways, & radio, tv, mobile phones
• Research to explore innovative tools ( tablets) and new approaches : edutainment
• Incentives to participation (prize-draw & free-meal)
• Integration of financial literacy content in existing training
• Deliver financial education to individuals and families/communities
• Rely on trusted partners and disseminators (+ role models)
Ensure effective outreach to promote behavioral changes
III) Good practices and effective approaches:
Developing trust, financial awareness, knowledge & skills
Access, demand and content matters!

17. THANK YOU!
Flore-anne.messy@oecd.org
www.financial-education.org