trends in the implementation of national strategies for financial education...

TRENDS IN THE

IMPLEMENTATION OF

NATIONAL STRATEGIES

FOR FINANCIAL EDUCATION

Andrea GrifoniPolicy AnalystFinancial Education and Consumer ProtectionOECD

Financial Education in the Arab World

Strategies, Implementation and Impact

Skhirat, Rabat, Morocco

20-21 October, 2016

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 objectiveswithin a set period of time; and,

Provides guidance to be applied by individual programmes in order to efficiently and appropriately contribute to the strategy”

National Strategy for Financial Education

What is it?

2

3

Status of NS in 2015 59 economies

OECD/INFE work on National Strategies

(NS) for Financial Education

2012High-level Principles

endorsed by G20 Leaders

and supported by APEC Ministers of Finance

2013Publication on NS

status in G20 economies

welcomed by G20 Leaders

2015Policy Handbook on the

implementation of NS

4

5

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

Outline

Mea

sure

men

t 48 economies have conducted at least one baseline financial literacy survey

Adults: OECD/INFE (39) Youth: PISA financial literacy assessment 2012 and 2015 (24 countries); next 2018

Longitudinal surveys and ethnographicstudies

Follow individuals/households over time to understand changes in their financial behaviour

Focus groups Understand specific policy areas or target groups (Brazil, the Netherlands, Hong Kong)

More regular simpler measurements “trackers”

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

1 - Developing a diagnosis: measuring

• 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-for-profit and private sector stakeholders

• Gather additional evidence

• Identify valuable resources and programmes

Objectives

7

1 - Developing a diagnosis : mapping

• 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.

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provision of FE

Outline

• Few but increasing

Explicit mandates

•Ensure Leadership and Flexibility•Define role for stakeholders Multi-stakeholders approaches •Creation of a new body •Separation of directive/executive and implementing roles

Governance structures

9

2 - Establishing institutional and


• NS that are more financially sustainable

• Greater accountability and visibility to the public and the government

• Easier to engage with stakeholders• Boost FE components in other pieces

of legislation • Legal basis for Codes of Conduct and

enforcement

• 8 explicitly in founding acts (ASIC Australia, FCAC Canada, FSAs Estonia Indonesia Japan South Africa, MAS UK)

• 6 through primary or secondary legislation

• 13 have implied it from other responsibilities

Benefits

• Financial support• Specialist and up-

to-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

10

2 - Increasing involvement of the private

sector

• 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

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Private sector involvement

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

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

Targeted guidelines for specific programmes to guide

stakeholders in their interventions (eg in schools)

in the Netherlands, Singapore etc.

Indirect involvement: through industry associations

(Portugal), in-kind support (New Zealand website)

and mandatory levies (UK)

OECD/INFE

Guidelines on

Private and Not-

for-profit

Stakeholders in FE

12







provision of FE

Outline

3 – Setting and achieving objectives

Tailored roadmap and action plans

• 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

Common objectives and priorities

13

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 2014-17 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


Funding the strategy

• Ideally dedicated and sustainable budget per project• Mixed public–private resources

Resources

14

• 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)

Ov

era

ll e

va

lua

tio

n Quantitatively Repeated financial literacy measurement surveys

Financial behaviours trackers (Australia, New Zealand, South Africa)

Qualitatively Consultation with stakeholders (permanent/ad hoc)

Analysis of the evaluation of single programmes of the NS

Use of Core Competencies on financial literacy

They identify targets against which to measure progress

15


Evaluating the strategy

OECD/INFE

Case studies and good practices

16

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.

Biannual reports on progress on the overall NS

New Zealand

The Money Advice Service in the UK is developing a financial

capability evidence hub to collect evidence from evaluated

programmes to share ‘what works’

ASIC in Australia commissioned an independent evaluation of

the implementation of its MoneySmart Teaching program

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provision of FE

Outline

4. Effective delivery

Facilitating access to information/education

• Seek to centralise information = one user friendlywebsite

• Advertise the existence of such resources

• Provide information/education through trusted and known sources

• Assist consumers in comparing and assessingproducts

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 high-touch 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

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Case studies Reaching hard-to-reach groups: embed messages about

positive financial behaviour in TV, soap operas, movies

and radio dramas in various African countries (Kenya,

Nigeria, South Africa, HK, Singapore, etc).

Engage out-of-school children and young people: comics,

educational videogames (Austria, US)

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, …)

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

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provision of FE

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 –2015 + G20 2016

→ 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

5 Key messages

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THANK YOU!

شكرا

[email protected]

www.oecd.org/finance/financial-education

www.financial-education.org

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