TRENDS IN THE IMPLEMENTATION OF NATIONAL STRATEGIES FOR FINANCIAL EDUCATION

Transcription

1 TRENDS IN THE IMPLEMENTATION OF NATIONAL STRATEGIES FOR FINANCIAL EDUCATION VII CONFERENCE ON FINANCIAL EDUCATION AND INCLUSION IN LATIN AMERICA AND THE CARIBBEAN NOVEMBER 2015 MONTEVIDEO, URUGUAY Andrea Grifoni Policy Analyst Financial Education and Consumer Protection Unit OECD

2 Outline Review of trends in: 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 2

3 Status of NS in economies 3

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 1 - Developing a diagnosis Measurement 48 economies have conducted at least one baseline financial literacy survey Longitudinal surveys and ethnographic studies Focus groups More regular simpler measurements trackers 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) Easier to conduct, annual or bi-annual basis (Australia, New Zealand, South Africa) Increasingly they include behavioural and attitudinal elements Aim to capture financial wellbeing (United States, United Kingdom) 6

7 Financial well-being as an objective of NS United Kingdom: Evidence collected through behaviour tracker identification of 5 states of financial well-being Secure Resilient Making ends meet Constantly struggling Unable to keep up United States: CFPB open ended interviews to understand consumers perspective on how ppl could make the best of their situation given their current financial circumstances. Financial well-being when: Control over day-to-day, month-to-month finances Capacity to absorb shocks On track to meet personal financial goals Freedom to make choices that allow enjoying life 7

8 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. 8

9 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 9

10 2 - Establishing institutional and governing arrangements Explicit mandates Governance structures Few but increasing NS that are more financially BCU Uruguay sustainable 8 explicitly in founding Greater accountability and visibility to acts (ASIC Australia, the public and the government FCAC Canada, FSAs Easier to engage with stakeholders Estonia Indonesia Boost FE components in other pieces Japan South Africa, of legislation MAS UK) Legal basis for Codes of Conduct and 6 through primary or enforcement secondary legislation 13 have implied it from Leadership and Flexibility other responsibilities Multi-stakeholders approaches Creation of a new body Separation of directive/executive and implementing roles Defined role for stakeholders 10

11 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 11

12 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 12

13 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 13

14 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 14

15 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) 15

16 Overall evaluation 3 Setting and achieving objectives Evaluating the strategy Quantitatively Qualitatively Use of Core Competencies on financial literacy Repeated financial literacy measurement surveys Financial behaviours trackers (Australia, New Zealand, South Africa) Consultation with stakeholders (permanent/ad hoc) Analysis of the evaluation of single programmes of the NS They identify targets against which to measure progress 16

17 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 17

18 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 18

19 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

20 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 Diagnosis of life-time financial planning: Weather report in Japan 20

21 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 21

22 5 Key messages 1. Continued and increasing relevance of National Strategies for Financial Education, calls for effective intervention OECD/INFE High-level Principles on National Strategy for Financial Education (G20, 2012) and forthcoming Policy Handbook (G20, 2015) 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 Key success/performance indicators should be set and realistic OECD/INFE core competencies on financial literacy G20 forthcoming 3. Evidence/research-based approach and on going evaluation to monitor impact and ensure accountability OECD/INFE Updated toolkit to measure adults financial literacy and inclusion next survey 2015 PISA Financial Literacy, 2012, 2015, 2018 OECD/INFE Toolkit to evaluate programmes INFE Research Committee 4. Leadership role of public stakeholders with a mandate and means 5. Coordination and multi-stakeholders partnership are vital OECD/INFE Guidelines For Private and for-profit stakeholders in financial education

23 THANK YOU!