2. Session 1.2 - Yousra HAMED PPT OECD-India- RBI.ppt

1. ILO approach and experience in
financial education
Yousra HAMED
Technical expert - Social Finance
International Labour Organisation

2. International Labour Organization
 Specialized Agency of the UN founded in 1919
 Tripartite structure: Government, employers’ and workers’
organizations
 Promotion of decent work
 4 pillars: Promoting fundamental rights at work, creating
decent jobs, improving social protection, strengthening
social dialogue
ILO and financial inclusion
 Innovative finance for social justice
 Promoting inclusive finance on 3 levels: policies, institutions
and clients

3. WHAT DO WE DO? EXPECTED OUTCOMES
DEVELOPMENT
OBJECTIVE
• Development / adaptation of FE
materials addressing needs of diverse
target groups and contexts
•Training of trainers
•Training/counseling or (mass)media
campaigns to equip target groups
with financial knowledge, skills and
tools
•Impact assessments to refine models
•Workers, entrepreneurs,
migrant workers & their
families, farmers, families
with working children,
youth
•make informed decisions
about
•earning, spending, savings,
borrowing, using insurance,
money transfers and other
services
•Workers,
entrepreneurs, migrant
workers & their
families, farmers,
families with working
children , youth... have:
•built their assets
• engaged into and
taken advantage of
income generating
activities; or invested
their wages
•protected themselves
against risks (i.e.
health, accident,
disaster, over-
indebtedness…)
ILO’s Financial education (FE) intervention model
•FSPs offer credit, savings,
insurance, money transfers
and other products that
meet the needs of target
groups
•Technical assistance to Financial
Service Providers (FSPs) for them to
assess needs of clientele/target
groups and develop relevant products
• Capacity building of FSPs to improve
their performances and better
manage products diversification
Possibly combined with other support services (skills, BDS, migration) for a greater impact
Contributing to
Financial inclusion
for social justice
Enhancing financial capabilities of target groups
In parallel strengthening the provision of financial services

4. The ILO and financial education….
The story certainly started with….
then… and…
And then… it got more and more diversified….
With also videos, music, radio programmes , …

5. Examples of training materials
Trainer's Manual (North Africa)
 Part 1: Presentation (context, objectives, strategy) and proposal
of tools to help trainers organize and facilitate training
 Part 2: core curriculum: 7 modules each contains 2 to 4 training
sessions - total of 24 sessions in 37 hours
 Part 3: Toolkit - 13 training sessions targeting workers,
migrants, homeworkers and entrepreneurs
Learner Handbook (Tunisia)
 Adapted to the target audience (women, youth and migrants
and their families)
 Uses personal stories of characters (comics, case studies,
practice)

6. Process for FE programme development
 Identification of needs (regional mapping, BAM meetings, CMS, AMC ...)
 Development of the strategy (adaptation of tools, validation workshop, ToT,
integration with other project activities)
 First adaptation of the material by an international trainer with experience in
Morocco: cultural and target group.
Workshop on the adaptation and validation of training materials for
young people in Morocco (November 2013 in partnership with
the Central Bank of Morocco and CMS)
Example: Morocco in the framework of the project Youth at Work
Training of trainers, testing of material and development of institutional
dissemination strategies: Agadir 17-21 February 2014
Finalization of training materials: End 2014 – Common national Moroccan
FE material
Roll out of trainings and accreditation of trainers
Dissemination phase and potential declination of tools in other formats

8. Challenges and opportunities
 Integrated approach
 Monitoring
 Quality
 Outreach
 Adaptation to the context and target groups
 Limited scope with classroom trainings yet it gives an
opportunity to have a common basis to use other channels.
 Evaluation and impact measurment
 Going beyond training of trainers and building a programme
for experts, policy makers and broader development
professionals
International database
Locally and target
adapted manuals +
Generic manual available
Mass media, soap operas, theatres, flyers, brochures, e-learning…
Accreditation system

9. Tentative programme for the NEW training
programme for policy makers and development
practitioners
Day 1 Key concepts Financial sectors Responsible finance:
consumer protection, financial education and financial
institutions’ regulations - Current trends (global) Financial
services typology and financial education for improved use
Day 2 Macro level and policies - Financial education country
framework - Establishing institutional and governing
arrangements
Day 3 Designing specific strategies to address needs of various
segments - Profiling the consumer market segments - Review
of various delivery examples - Creating an outreach strategy
for different segments
Day 4 Implementation- Designing partnerships - Action planning
Day 5 Market place

10. Some lessons learnt to foster impact of FE
initiatives
– Adapt curriculum and delivery channel to target group needs
– Build on existing local financial education initiatives
– Define common standards for a recognition of different financial
literacy curriculum/levels
– Strengthen impact assessment mechanisms
– Institutionalize financial education curriculum in government
programme
– Identify relevant partners and build strong partnerships
– Further explore innovative approaches for up scaling
– Combine financial education with other services

11. Thank you!
Yousra HAMED
Social Finance Programme
www.ilo.org/socialfinance
hamed@ilo.org

12. Outreach and impact
Outreach
The program covers some 20 countries in Asia, Africa and Europe
 Asia: 10,675 trained
 Africa: 400 trainers and 2000 trained
 Latin America: 150 trainers and 12.000 trained (2018)
 Europe: 30 consultants and trainers and thousands of trained
bank clients
 Impact :
Fasecolda - Colombia - Risk Management and Insurance Education
Intervention: Campaign mass media (radio-300,000) + workshops
(15,000)
Results:
Participation in workshops + exposure to media campaigns helped to
better identify risks, including risk management strategies and use of
insurance
No evidence of changes in attitudes
http://www.impactinsurance.org/projects/lessons/risks-and-insurance-literacy

13. Impact - Microfinance for decent work
AMK – Cambodia
Innovation: Implemented an indirect training approach to
improve financial literacy and staff skills by bringing
important messages to group meetings throughout the loan
cycle.
Result:
Most positive impact on customer repayment behavior: 3.4%
reduction in payment delays
Positive and significant impacts on: • asset accumulation at 10%
increase, • financial behavior with an 8% reduction in the
idea that it is impossible to save, an increase 1% of the
associating savings with safer and better management of the
indebtedness and a change of attitude towards the loan.

14. Vision Fund– Cambodia
Innovation: Classroom training for clients
Results:
Some impact on financial behavior and risk management
10% decrease in the negative perception of insurance • Partial improvement of
the provision towards savings • 9% increase in the amount set aside in the
event of an emergency • 22% increase in the capacity to set money aside for
use in case of emergency
Little data on asset accumulation
Many mitigated and intuitive results regarding multiple borrowing / over-
indebtedness and vulnerability
Impact - Microfinance for decent work