TRENDS IN THE IMPLEMENTATION OF NATIONAL STRATEGIES FOR FINANCIAL EDUCATION

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1 TRENDS IN THE IMPLEMENTATION OF NATIONAL STRATEGIES FOR FINANCIAL EDUCATION Financial Education in the Arab World Strategies, Implementation and Impact Skhirat, Rabat, Morocco October, 2016 Andrea Grifoni Policy Analyst Financial Education and Consumer Protection OECD

2 National Strategy for Financial Education What is it? No one-size-fits-all model! A National Strategy is a nationally coordinated approach to financial education that consists of an adapted framework which: Recognises the importance of financial education and defines its meaning and scope at national level in relation to identified national needs and gaps Involves the cooperation of different stakeholders as well as the identification of a national leader or coordinating body/council Establishes a roadmap to achieve specific and predetermined objectives within a set period of time; and, Provides guidance to be applied by individual programmes in order to efficiently and appropriately contribute to the strategy 2

3 Status of NS in economies 3

OECD/INFE work on National Strategies (NS) for

the implementation of NS 2013 Publication on

4 OECD/INFE work on National Strategies (NS) for Financial Education 2012 High-level Principles endorsed by G20 Leaders and supported by APEC Ministers of Finance 2015 Policy Handbook on the implementation of NS 2013 Publication on NS status in G20 economies welcomed by G20 Leaders 4

5 Outline 1. Developing a diagnosis 2. Establishing institutional and governing arrangements 3. Setting and achieving objectives, funding and evaluating the NS 4. Ensuring effective and innovative provision of FE 5

6 Measurement 1 - Developing a diagnosis: measuring 48 economies have conducted at least one baseline financial literacy survey Longitudinal surveys and ethnographic studies Focus groups Adults: OECD/INFE (39) Youth: PISA financial literacy assessment 2012 and 2015 (24 countries); next 2018 Follow individuals/households over time to understand changes in their financial behaviour Understand specific policy areas or target groups (Brazil, the Netherlands, Hong Kong) More regular simpler measurements trackers Increasingly they include behavioural and attitudinal elements Easier to conduct, annual or bi-annual basis (Australia, New Zealand, South Africa) Aim to capture financial wellbeing (United States, United Kingdom) 6

7 1 - Developing a diagnosis : mapping Consultation with stakeholders (32 economies) Calls for evidence Research in cooperation with Universities How Inventory, review and evaluation of existing initiatives (40 economies) Co-opt not-forprofit and private sector stakeholders Gather additional evidence Identify valuable resources and programmes Objectives The revision of the Australian national strategy involved: a National Financial Literacy Forum, a public consultation, and a stocktaking exercise. Estonia and Latvia: the mapping and consultation exercises revealed that some target groups received a lot of attention, while other areas were left uncovered. 7

8 Outline 1. Developing a diagnosis 2. Establishing institutional and governing arrangements 3. Setting and achieving objectives, funding and evaluating the NS 4. Ensuring effective and innovative provision of FE 8

9 2 - Establishing institutional and governing arrangements Explicit mandates Governance structures Few but increasing NS that are more financially sustainable 8 explicitly in founding Greater accountability acts (ASIC and Australia, visibility to the public and FCAC the Canada, government FSAs Easier to engage Estonia with Indonesia stakeholders Boost FE components Japan South in other Africa, pieces of legislation MAS UK) Legal basis for 6 through Codes of primary Conduct or and enforcement secondary legislation 13 have implied it from other responsibilities Ensure Leadership and Flexibility Define role for stakeholders Multi-stakeholders approaches Creation of a new body Separation of directive/executive and implementing roles 9

10 2 - Increasing involvement of the private sector Benefits Financial support Specialist and upto-date knowledge, Reach a wide audience, to exploit teachable moments, Combine financial education with financial inclusion Challenges Potential conflicts of interest, Lack of coordination Lack of evaluation Support for public strategies and initiatives Indirect involvement of financial institutions Development of, and compliance with, codes of conduct Distinction between commercial and educational activities 10

11 Private sector involvement Indirect involvement: through industry associations (Portugal), in-kind support (New Zealand website) and mandatory levies (UK) OECD/INFE Guidelines on Private and Notfor-profit Stakeholders in FE Portugal: Principles for Financial Education Initiatives within the NS and recognition: only programme complying with the principles are recognised with the NS Criteria for neutrality of financial education programmes in Japan Targeted guidelines for specific programmes to guide stakeholders in their interventions (eg in schools) in the Netherlands, Singapore etc. Mandatory participation in South Africa or Indonesia : Financial institutions have to develop financial education and report back on their activities. In India, State Banks have to offer financial education in centres created in branches around the country 11

12 Outline 1. Developing a diagnosis 2. Establishing institutional and governing arrangements 3. Setting and achieving objectives, funding and evaluating the NS 4. Ensuring effective and innovative provision of FE 12

13 3 Setting and achieving objectives Tailored roadmap and action plans Common objectives and priorities Define consistent policy priorities in line with initial diagnosis Identify key target groups based on mapping, assessment and government priorities Set measurable and realistic goals: important for a regular assessment In the Investor Education Centre in HK used a model borrowed from public health interventions and marketing (together with more traditional methods such as measurement surveys, desk research, and focus groups) to identify target audiences. Measurable policy objectives: the Australia s revised NS includes key indicators aligned to the strategy's priorities to facilitate monitoring and reporting, such as Number of teachers participating in ASIC's MoneySmart Teaching professional learning program; Number of people accessing ASIC's MoneySmart website and print materials 13

14 3 Setting and achieving objectives Funding the strategy Resources Ideally dedicated and sustainable budget per project Mixed public private resources Statutory levy on the financial services sector (Ireland, South Africa, United Kingdom) Mandate financial institutions to develop FE programmes and report on results and impact (Indonesia) Secure commitment from the private sector and encourage funding on projects that can serve the objectives of the NS (Canada) 14

15 Overall evaluation 3 Setting and achieving objectives Evaluating the strategy Quantitatively Repeated financial literacy measurement surveys Financial behaviours trackers (Australia, New Zealand, South Africa) Qualitatively Use of Core Competencies on financial literacy Consultation with stakeholders (permanent/ad hoc) Analysis of the evaluation of single programmes of the NS They identify targets against which to measure progress OECD/INFE 15

16 Case studies and good practices Biannual reports on progress on the overall NS New Zealand ASIC in Australia commissioned an independent evaluation of the implementation of its MoneySmart Teaching program Randomized control trial of FE in school in Brazil involving 891 schools in six states. Based on the results of the pilot the government plans to extend FE in primary schools. The Money Advice Service in the UK is developing a financial capability evidence hub to collect evidence from evaluated programmes to share what works 16

17 Outline 1. Developing a diagnosis 2. Establishing institutional and governing arrangements 3. Setting and achieving objectives, funding and evaluating the NS 4. Ensuring effective and innovative provision of FE 17

18 4. Effective delivery Facilitating access to information/education Seek to centralise information = one user friendly website Advertise the existence of such resources Provide information/education through trusted and known sources Assist consumers in comparing and assessing products Taking account of timing and location Harness environments conducive to cognitive learning = schools, workplace Do not waste potential teachable moments Include financial education in existing social and community activities Modulate intensity = between soft and hightouch interventions Supporting motivation and decision-making Build financial competencies foundation early in life Develop financial knowledge but also attitude and skills Introduce incentives Use peer pressure and community effects Develop interactive methods = games, competition Provide a tool box for action Reduce time between teaching and action Seek consumers feedbacks

19 Reaching hard-to-reach groups: embed messages about Case studies positive financial behaviour in TV, soap operas, movies and radio dramas in various African countries (Kenya, Nigeria, South Africa, HK, Singapore, etc). Introduction of FE in high schools: pilot, use of high-quality resources (materials rigorously tested, and teachers trained through workshops, DVDs and a guidebook); engaging and relevant material (interactive material with practical exercises, relevant to young people s lives); focus on both the acquisition of knowledge and on shaping attitudes; involving students families (Brazil, Malaysia, Peru, ) Engage out-of-school children and young people: comics, educational videogames (Austria, US) Enhance financial literacy together with other relevant skills: programmes combining financial education with training on health and life skills for young women in Africa as a way to improve their overall empowerment 19

20 Key messages 1. Developing a diagnosis 2. Establishing institutional and governing arrangements 3. Setting and achieving objectives, funding and evaluating the NS 4. Ensuring effective and innovative provision of FE 20

21 5 Key messages 1. Continued and increasing relevance of National Strategies for Financial Education: OECD/INFE members will focus on implementation Policy Handbook (G20, 2015); OECD/INFE working group on implementation 2. Financial education : A win-win solution.not a silver bullet : Policies should go hand-in-hand with consumer/investor protection and inclusion G20/OECD High-level Principles on Financial Consumer Protection, 2011 G20 Principles for Innovative Financial Inclusion, 2010 G20 High-Level Principles for Digital Financial Inclusion, 2016 Key success/performance indicators should be set and realistic OECD/INFE core competencies on financial literacy G20 3. Evidence/research-based approach and ongoing evaluation to monitor impact and ensure accountability OECD/INFE Updated toolkit to measure adults financial literacy and inclusion G PISA Financial Literacy, 2012, 2015, 2018 OECD/INFE Toolkit to evaluate programmes 4. Leadership role of public stakeholders with a mandate and means 5. Coordination and multi-stakeholders partnerships are vital OECD/INFE Guidelines For Private and for-profit stakeholders in financial education

22 THANK YOU! شكرا

TRENDS IN THE IMPLEMENTATION OF NATIONAL STRATEGIES FOR FINANCIAL EDUCATION

TRENDS IN THE IMPLEMENTATION OF NATIONAL STRATEGIES FOR FINANCIAL EDUCATION VII CONFERENCE ON FINANCIAL EDUCATION AND INCLUSION IN LATIN AMERICA AND THE CARIBBEAN 12-13 NOVEMBER 2015 MONTEVIDEO, URUGUAY