Financial Education in the Arab World Strategies, Implementation and Impact

Amphitrite Hotel in Skhirat, Rabat, Morocco 20-21 October, 2016

Background and Rationale

Historically, financial inclusion in the Arab region has been low compared to other regions. According to the 2014 Global Findex Database account penetration stands at 29% across the region, well below the 69% observed in East Asia and Pacific. When excluding GCC countries, the outreach of formal financial services in the region stands at 21%, the lowest worldwide. Women are particularly financially excluded with account penetration standing at 24.5%, lagging behind the OECD as well as other non-OECD high-income countries. Similarly to account ownership, the Arab world lags behind other regions in terms of access to credit from formal financial institutions. With only 6% of adults reporting borrowing from a formal financial institution, credit outreach in the region (when excluding GCC countries) is less than half of most other developing regions globally. Furthermore, although small-and-medium enterprises (SMEs) represent 80% of businesses in the region, only one in five has a loan or line of credit. The available financing options for SMEs are almost in working capital forms, as long term funding for SMEs remains insignificant. Moreover, the SME financing gap in the region is the largest across the world. An estimated ~360% increase of credit is required to close the financing gap across MENA, as opposed to 7-8% in East Asia and the Pacific. Available figures suggest that there is great potential to expand financial inclusion in the Arab world. The low levels of financial inclusion in the region are the result of unserved demand as the population resorts to informal financial management tools as an alternative to inexistent or poorly developed formal financial services. Responding to this challenge, policymakers across the region have begun prioritizing financial inclusion through, inter alia, developing national strategies, creating incentives for financial service providers to downscale, developing new financing mechanisms, and improving regulatory and supervisory frameworks underpinning inclusive finance. In this context, financial consumer protection and financial education have become a topic of interest to both policymakers and financial services providers. In recent years, the Arab region has seen a variety of programs launched by financial service providers, public authorities, and non-governmental organizations aimed at enhancing financial education of low-income consumers. Yet, little knowledge has been shared across the region regarding the efficiency or impact of such programs in fostering improved financial behavior, in better protecting clients, or in increasing usage of formal financial services. Similarly, programs are often piloted in isolation of each other, with little cross-country knowledge sharing to highlight best practices and to leverage existing resources.

This conference will bring together practitioners, researchers, and high-level government authorities

to share emerging best practices on developing financially capable communities in the Arab region.

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The event will present recent empirical evidence on financial education, share best practices of

country-level programs, and discuss broader linkages between financial education and economic

inclusiveness and development. Emphasis will be placed on assessing efficiency and impact of

financial education programs and on ways to develop a regional framework for practical action

moving forward.

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AGENDA

Day 1 | 20 October 2016 | 9.00 – 18.00 Master of Ceremony: Mr. Habib Attia, Financial Sector Specialist, Arab Monetary Fund; Mr. Peter McConaghy, Financial Sector Specialist, World Bank

TIME TOPICS

08.00 – 09.00 REGISTRATION AND NETWORKING COFFEE

09.00 - 10.00

OPENING REMARKS & INTRODUCTION

Mr. Mohamed Boussaid, Minister of Economy and Finance Mr. Abdellatif Jouahri, Governor of Bank Al-Maghrib and President of FMEF Mr. Abdulrahman A. Al Hamidy, Director General Chairman of the Board, AMF Mr. Rachid Benmokhtar, Minister of National Education and Professional Training Mrs. Fatima Marouan, Minister of Handicraft and Social and Solidarity-Based Economy

10.00 – 10:20

KEYNOTE SPEECH

Setting the scene: Introductory speech on financial education in the Arab World

Mr. Alfred Hannig, Executive Director, Alliance for Financial Inclusion

10.20 – 10.40 COFFEE BREAK

10.45 – 11.45

PLENARY SESSION I: THE THREE PILLARS OF FINANCIAL INCLUSION

The objective of this session is to provide an analytical framework on the importance of financial inclusion to broader economic development goals in the MENA region. The session will serve as an opportunity for participants to gain a common understanding of the theory and empirical evidence surrounding inclusive finance in the MENA region. The session will also present recent data and trends in financial inclusion in the MENA region. Specific reference will be placed on the linkages to financial inclusion and employment, income generation, poverty reduction, and transversal linkages to productive investment outcomes including health and education. The panel will also introduce the role of financial education, consumer protection, and industry standards as key pillar of promoting inclusive finance in the region.

Speakers: Nadine Chehade, MENA Regional Representative, Consultative Group to Assist the Poor

(CGAP) Asmaa Bennani, Director, Payment System and Instruments Oversight and Financial

Inclusion, Bank Al-Maghrib Daniel Balson, Lead Specialist for Middle East, Eastern Europe, and Central Asia at Accion Moderator: Peter McConaghy, Financial Sector Specialist, World Bank

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11.45 – 12.45

PLENARY SESSION II: BOTTOM UP AND TOP DOWN: HOW TO ADDRESS FINANCIAL EDUCATION IN

AN EFFECTIVE WAY

Governments and public authorities in the MENA region willing to implement financial education policies however face a series of challenges. Against this background, the establishment of coordinated and tailored strategies at national level is among the most promising means to efficiently meet the financial literacy needs of the population and co-opt interested stakeholders while avoiding duplication of resources and efforts.

The panel discussion intends to: Provide an overview of financial education policies, national strategies and main challenges

in the Arab world and globally based on existing evidence Discuss the role of different stakeholders and how to promote cooperation and identify

common objectives Present and discuss available policy tools, and research that can support governments and

public authorities in the region in the design and implementation of these initiatives.

Speakers: Raed H. Charafeddine, First Vice-Governor, Bank of Lebanon Ramla Krifa, Central Bank of Tunisia Ali Faroun, Director, Palestine Monetary Authority Moderator: Andrea Grifoni, Policy Analyst, Organization for Economic Co-operation and

Development (OECD)

12.45 - 14.30 LUNCH

14:30-14:45 INTRODUCTION TO THE BREAKOUT SESSIONS

14.45-16.15

14.45-15.25 15.35-16.15

Digital Savings and

Payments to Achieve

Full Financial Inclusion

in the Arab World

Financial Capability of MSE to Leverage Growth and Development

Financial Education for Inclusion of Women and Youth

Financial Inclusion, Education, and Migration

- Solveig Wanczeck, GIZ Germany

- Aiaze Mitha, Chief MFS officer at Tiaxa

- Peter McConaghy, World Bank

- Moderator: TBD

- Habib Attia, AMF - Richard Lavallée,

ILO - Hayder Al-

Baghdadi, GIZ Egypt - Badie El Hirache, Al

Amana - Ibtissam El Anzaoui,

Bank Al-Maghrib - Moderator: Habib

Attia, AMF

- Nomsa Daniels, new faces new voices, women in finance

- Wessel van Kampen, CYFI

- Najib Choukair, Bank of Lebanon

- Andrea Grifoni, Policy Analyst, OECD

- Moderator: Yisr Barnieh, AMF

- Daniel Balson, Accion

- Abderrahim Amraoui, ILO Morocco

- Onike Shorunkeh-Sawyerr, GIZ Germany

- Moderator: Franziska Vilmar, GIZ Morocco

16:15-16:45 COFFEE BREAK

16:45-17:15

SESSION III :

Reporting back from the market place

Moderator: Habib Attia, Financial Sector Specialist, Arab Monetary Fund

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17:15-18:00

WARP UP OF DAY 1

Habib Attia, Financial Sector Specialist, Arab Monetary Fund Ibtissam El Anzaoui, Head of Financial Inclusion unit, BAM Peter McConaghy, Financial Sector Specialist, World Bank

19.30 – 22:00 COCKTAIL/DINNER – CONFERENCE CENTER – AMPHITRITE HOTEL – SKHIRAT

Day 2 | 21 October 2016 | 9.00 – 12.30 | Master of ceremony: Nezha Saadani, FMEF

TIME TOPICS

8.30 – 9.00 NETWORKING RECEPTION COFFEE

9.00 – 9:20

OPENING DAY 2: BRIEF RECAP OF THE 1ST DAY AND PROGRAM REMINDER

Habib Attia, Financial Sector Specialist, Arab Monetary Fund Peter McConaghy, Financial Sector Specialist, World Bank

09:20 – 10:35

PLENARY SESSION IV: EVIDENCE FROM FINANCIAL EDUCATION PROGRAMS IN MOROCCO

This session will highlight the Moroccan experience with reference to the approach and programs adopted as well as sharing some lessons learned. The session intends to present:

1) Prerequisites and keys to success of a national financial literacy strategy 2) Focus on best practices 3) Major financial literacy programs 4) Potential impact on the financial capability driven by financial education on the targeted

population. Speakers:

Youssef Belqasmi, Secretary-General of Ministry of National Education and Professional Training

Mohamed Meslek, Secretary-General of the Ministry of Handicraft and Social and Solidarity-Based Economy

Driss Mansouri, President of Hassan II University- Casablanca Houdaifa AMEZIANE, President of the University of Abdelmalek Saadi - Tetouan Abdsamih Mahmoud, Director of ANLCA

Jamal Eddine El Jamali, Secretary-General of “ Crédit Agricole du Maroc“

Moderator: Asmaa Bennani, Director, Payment System and Instruments Oversight and Financial Inclusion, Bank Al-Maghrib

10:35 - 11.00 COFFEE BREAK

11.00 – 12.00

PLENARY SESSION V: FINANCIAL CONSUMER PROTECTION – WHAT ARE THE ROLES OF

REGULATORS AND INDUSTRY?

The objectives of this session are to present principles of a robust consumer protection framework and highlight country-level examples operationalizing this framework, particularly as it pertains to countries across the Middle East and North Africa Region. Key pillars of a robust consumer protection framework will be discussed, including institutional arrangements and coordination, supervisory approaches, and various supervisory tools and techniques. The role of financial capability as part of a robust consumer protection framework will be discussed. Specific country

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case studies will be highlighted to demonstrate practical application of consumer protection regimes. The session will also present various international platforms to advance consumer protection policy, including the G20 high-level principles on financial consumer protection developed in conjunction with the OECD.

Speakers:

Mary Chaffin, Volunteer and Retired General Counsel, Accion Lhassane Benhalima, Financial Supervision Department, Bank Al-Maghrib Alaa Abbassi, Senior Technical Advisor (Consultant), CGAP Moderator: Habib Attia, Financial Sector Specialist, Arab Monetary Fund

12:00 – 12:30

CLOSING SESSION AND NEXT STEPS

Yisr Barnieh, Chief of Financial Market Division, Arab Monetary Fund Philippe de Meneval, Program Leader, Equitable Growth, Finance, and Institutions, World

Bank Petra Müller-Glodde, Head of Sustainable Economic Development, GIZ Morocco

14.00 – 15:00 LUNCH