Financial Education Strategies in Asia: Main Challenges ... · on activities for SFC •Poster...
Transcript of Financial Education Strategies in Asia: Main Challenges ... · on activities for SFC •Poster...
BANK NEGARA MALAYSIACENTRAL BANK OF MALAYSIA 1
BANK NEGARA MALAYSIAKoid Swee LianDirector, Consumer and Market Conduct Department 21 October 2008
Financial Education Strategies in Asia:
Main Challenges and Goals
Malaysian Experience
OECD-Bank Indonesia
Int’l Conference on Financial Education
BANK NEGARA MALAYSIACENTRAL BANK OF MALAYSIA 2
Financial Sector Master Plan
Building domestic
capacity
Increase domestic
competition
Increase pace for
integration with the
international market
Phase 1 Phase 2 Phase 3
Effective
consumer
protection & fair
market practices
Preconditions to greater deregulation and
liberalisation
2000 20102003 Implemented the consumer education programme
BANK NEGARA MALAYSIACENTRAL BANK OF MALAYSIA 3
Challenges Facing Consumers
Information
asymmetry & level
of transparency
Low level of
financial literacy
Ageing population
& increase life
expectancy
Easy access
to credit
Innovative
& complex
financial products
Young generation
& attitude to creditFinancial scams
Growing consumer
debt & reduced
household savings
Changing
delivery
channels Challenges
BANK NEGARA MALAYSIACENTRAL BANK OF MALAYSIA 4
Approach to Consumer Protection
Open,
competitive &
fair financial
system
Speedy
Redress
Good
Information
Avenues to seek
help and redress
Consumer
education goals
Information must be
Allows for best dealsPromotes
innovationEnhances
efficiency
Approach
accurate
easy to understand
accessible
Empower consumers to make informed & confident decisions
Moderate imbalances bet. consumers & financial service providers
Mitigate financial risks associated with financial transactions
Conducive environment for industry growth and development
Maintain long-term consumer confidence in financial markets
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Our Approach – Target Group
Audience
General Public (aged 18 & above)
• Make financial information
available and accessible
• Guidelines on Product
Transparency and Disclosure
• Product disclosure sheet for ease
of comparison
Adults•Rural communities
• Women’s group
• Retirees
• Civil servants
• Disabled community
Targeted segment
School children•Primary *
• Secondary*
Broad based
* Including visually impaired school children
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TE
XT
Planning
Spending
Financial Products & services
Credit & debt
General issues
Risk management
Savings & budgeting
Buying tips, comparative shopping
Product features, risks & benefits,
T & C, rights & responsibilities
Borrowing & debt mgt, rights and
responsibilities as borrowers
Basic insurance & insurance planning
Redress avenues, illegal schemes,
role & responsibilities of other
players, insurance intermediaries
Education Focus (2003-2008)
Our Approach – Adults
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Our Approach – Adults
Broad Based Targeted Segment
•Provision of information via
seminar/ briefing/ advice/ face-
to-face sessions supplemented
with reading materials
•Greater emphasis on basic
money management and
awareness on financial scams
•Face-to-face sessions/ advice/
discussion
•Sharing real cases
•Use community leaders
Delivery
Meetingneeds
• Generic information on
financial products and money
management/ tools/tips/
comparative tables via printed
materials, website, print media
• Outreach – exhibitions / clinics
• Simple language, direct
message, larger fonts, in
different languages
• Website: simple language,
interactive, different languages
bankinginfo insuranceinfo&
Collaboration
• Partners disseminate materials
& provide feedback – financial
institutions/ consumer
groups/NGOs/Govt. Agencies
•Build network to achieve wider
outreach – relevant ministries/
state govt./NGOs/local
communities
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Our Approach – School Children
Nurture students with good money management habit to
become responsible adults
Working with schools
• In collaboration with
Ministry of Education
and financial institutions
(FIs)
• School are adopted by
FIs
• FIs impart knowledge
on banking and basic
financial matters
• Participated by more
than 8,000 government
aided schools
• Implemented as one
of the extra curriculum
activities in schools
• Engage in money and
finance related
activities using
workshops and games
• Formed in more than
2,000 schools
Aim
School Adoption
Programme
Students Financial
Clubs (SFC)
• Pocket Money Booklet-
learning tool on money
management
• Duitsaku website –interactive
portal including on line
Pocket Money Booklet
• Lesson plan – Guide for
teachers for the SFC
• Workshop (students) – impart
knowledge
• Workshop (teachers) – share
knowledge and give ideas
on activities for SFC
• Poster competition – to
promote awareness
Providing tools & resources
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Our approach – Disabled community
Current target – Visually impaired community
Translate informational
materials into Braille
Making bankinginfo and
insuranceinfo websites user
friendly to visually impaired users
1
2
Adult
Making duitsaku website user friendly to
visually impaired school children
Special school for visually impaired
children
Convert Pocket Money Booklet into
Braille
School Adoption Programme in the
special schools for visually impaired children
School children
1
2
3
4
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Note : Cumulative statistics, as at position1 Statistics are from inception2 Statistics are based on latest five years
Progress
Number of Visits (bankinginfo & insuranceinfo )
122,579
172,583
243,541
300,808
63,290
187,679
19,08935,598 49,086
87,265
111,89864,512
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Mar'07 Jun'07 Sep'07 Dec'07 Mar'08 Jun'08
bankinginfo insuranceinfo1 Distribution of Pocket Money Booklet
968
4,647
3,906
3,168
1,897
2,471
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
2003 2004 2005 2006 2007 2008 (Jan-
Jun)'000
2
Distribution of Booklets (bankinginfo & insuranceinfo)
1,200
4,7524,5004,100
2,4003,600
3,930
4,2804,1964,097
2,530
1,200
-
2,000
4,000
6,000
8,000
10,000
2003 2004 2005 2006 2007 2008 (Jan-
Jun)'000
insuranceinfobankinginfo
1 Duitsaku .com Membership Statistic Summary
733
75,602
60,380
82,34986,135
-
20,000
40,000
60,000
80,000
100,000
2004 2005 2006 2007 2008 (Jun)
1
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On line portals
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www.akpk.org.my
•Agency set-up by BNM to help
consumers with debt problem
• Also offers financial education
programme and credit counselling
• Services are free of charge
Credit Counselling and Debt Management Agency
Outreach activities• Targets youth, young adult segment and armed forces
• Participants (17 years old) in the compulsory National Service
Programme - various aspect of financial management. A total of
120,000 students involved annually
• Students at institutes of higher learning – developed the Personal
Financial Management Module used by a number of institutions of
higher learning as part of the Basic Entrepreneur Course beginning
2008
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General Assessment – Work in Progress
Engaging consumers How to best engage consumers in financial education?
What type of information do consumers need? What is the right mix of style and language to be used? Different books for different age group?
What is the right balance between providing too much and too little information?
Rapid development in financial markets requires information to be updated regularly
How to reach more people quickly & effectively?
How to make people practise & internalise what they have learnt?
How to measure achievement? Need a base level of financial capability?
Meeting needs
Adequate information
Keeping abreast
Huge target
Entrenched attitude &
behaviour
Assessment
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CEP - Recommendations
• Credible and resourceful driver
– to initiate and implement programme in building blocks
• Collaboration with Strategic Partners
– involve private and public sectors
– encourage others to promote awareness of financial education: media and other publications
– driver to coordinate and take stock to avoid duplication
• National financial education programme
– identify target group
– develop programme to suit target group
– multiple channels of delivery
– promote national objectives: financial inclusion, promote savings, migration to e-payment
• Effective allocation of resources
– Partnership to broaden outreach: publish information in NGO’s magazines
– develop informational material with industry input
– School adoption programme by financial institutions
– financial institutions pay / print and distribute informational material
– train-the-trainers: build expertise & transfer knowledge within target groups
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Thank You
Q & A Session