Monticone overview asia - bkk 3
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Transcript of Monticone overview asia - bkk 3
FINANCIAL EDUCATION POLICIES IN ASIA Chiara Monticone OECD OECD/Thailand Seminar on Financial Inclusion and Financial Literacy in Asia 16-17 December 2014 – Bangkok, Thailand
Challenges and
opportunities
State of financial
education policies: national
strategies
Policy suggestions
going forward
Outline
• Africa (2012), Latin America and the Caribbean (2013), Europe (forthcoming)
Part of a series of regional reports
Will be released as an OECD working paper in the course of 2015
• Thanks to all who contributed: comments are welcome
• It is still possible to reply and send more input by 30 January 2015
Based on a dedicated questionnaire among members of the OECD INFE, previous surveys and publications, and desk research
Draft report on
financial education in Asia
CONTEXT AND RATIONALE
Sustained growth
Decreasing poverty
Reformed and strengthened financial institutions
Poverty
Inequality
Informality
Illiteracy
Social and financial exclusion
Gre
at
imp
rov
emen
ts..
. ...o
pen
cha
lleng
es Context
1. Financial exclusion
2. New and potentially complex products
3. Low financial literacy
4. Population ageing
Rationale for financial education
Low inclusion in formal financial
markets and services on average…
0
10
20
30
40
50
60
70
80
90
100
Middle East& NorthAfrica
(developingonly)
Sub-SaharanAfrica
(developingonly)
South Asia LatinAmerica &Caribbean
(developingonly)
Europe &Central Asia(developing
only)
World East Asia &Pacific
(developingonly)
High income:OECD
Account at a formal financial institution (% age 15+)
Debit card (% age 15+)
Source: Demirguc-Kunt and Klapper (2012)
% of adults (15+) with an account at a formal financial institution,
by region
….and especially among some
population segments
0
10
20
30
40
50
60
70
80
90
100
Tu
rkm
enis
tan
Ca
mb
od
ia
Afg
ha
nis
tan
Pa
kis
tan
Aze
rba
ija
n
Ind
on
esia
Vie
t N
am
Jo
rda
n
Ph
ilip
pin
es
Ind
ia
Le
ba
no
n
Ba
ng
lad
esh
Ka
zak
hst
an
Sa
ud
i A
rab
ia
Ch
ina
Ma
lay
sia
Th
ail
an
d
Ho
ng
Ko
ng
(C
hin
a)
Isra
el
Ko
rea
Ja
pa
n
Sin
ga
po
re
Bottom 40% of income All Top 60% of income
Source: Demirguc-Kunt and Klapper (2012)
% of adults (15+) with an account at a formal financial institution,
by income level
New and potentially complex products
• Even when people are included, developing financial markets mean new and potentially complex products (eg. digital financial services) >> raising financial consumer protection and financial education issues
Low financial literacy
0102030405060708090
100
Division Interest paidon loan
Risk andreturn
Definition ofinflation
Time-valueof money
Calculationof interest
plusprincipal
Japan 2011
Korea 2012
Malaysia 2010
Thailand 2013
Sources: Japan: Central Council for Financial Services Information (2012); Korea: correspondence with the Bank of Korea; Malaysia: Atkinson and Messy (2012); Thailand: Bank of Thailand (2013)
% of adults giving a correct answer to each question
• Both in terms of low financial knowledge and of • potentially harmful financial behaviours (eg. growing
shares of people in debt)
Additional challenges related to ageing
coming soon in some countries…
China
India
Indonesia
Japan
Korea
Thailand
0
5
10
15
20
25
30
35
40
2010 2015 2020 2025 2030 2035 2040 2045 2050
%
Source: OECD (2013b), Pensions at a Glance Asia/Pacific 2013, OECD Publishing.
Projected share of people age 65+ as a % of total population
POLICY RESPONSES
APEC Finance Ministers – 2012
• supported the development and implementation of strategies for financial education drawing on the methodologies and tools developed by the World Bank and the OECD/INFE
• adopted a Policy Statement on Financial Literacy and Education encouraging APEC economies to use the OECD/INFE Guidelines for Financial Education in Schools, and to consider the participation in PISA financial literacy assessment
APEC Human Resources Development WG – 2012/2014
• project on Education on Financial and Economic Literacy
• publication of an APEC Guidebook on Financial and Economic Literacy in Basic Education (November 2014)
ASEAN – 2013
• Chairman’s Statement of the 23rd ASEAN Summit in 2013 – reiterated the importance of promoting financial literacy in the region
Regional recognition
A NS is a nationally coordinated approach to financial education which consists of an adapted framework or programme that:
• Recognises the importance of financial education and defines its meaning and scope at the national level in relation to identified national needs and gaps;
• Involves the co-operation 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 NS.
Among over 50 countries worldwide, 15 Asian countries and economies are developing a national strategy:
>> 7 are being implemented
>> 8 are being developed
National strategies
for financial education
National strategies’ development
Financial consumer protection
Financial education
Financial inclusion
Policy priorities and links
Close links between financial inclusion, financial consumer protection, and financial education, for instance:
• Institutional and policy links between FE and FCP in China Indonesia and Korea
• Financial education as an important element of financial inclusion policies in India and Malaysia
• Collaborations between public authorities and private financial institutions to promote financial education and financial inclusion in India, Indonesia, Malaysia, Singapore
Low-income and marginalised people
• China • India • Israel • Malaysia • Pakistan • Saudi
Arabia • Singapore
Students and/or young people
• Indonesia • Israel • Japan • Korea • Lebanon • Malaysia • Singapore
Women
• Indonesia • Malaysia • Lebanon • Pakistan • Saudi
Arabia
Migrants
• China, • India • Indonesia • Philippin
es
MSMEs
• Indonesia • Malaysia • Pakistan
Elderly
• Singapore
Main targets
Financial education topics integrated in the school curriculum
• at different levels (primary/secondary) and in different subjects in China, Hong Kong (China), Indonesia, Japan, Korea, Thailand, Singapore
Efforts to strengthen and expand provision
• Specific financial education curricula at regional/local level in China
• Proposal for integration in the national curriculum in Malaysia
• ongoing revision of learning outcomes in Japan
• Qualitative research to better understand needs and opportunities in Hong Kong
Financial education in schools
POLICY SUGGESTIONS
Policy suggestions
• More cross-country comparable evidence on financial literacy and not only on financial knowledge
Collect more evidence on financial literacy
• Financial institutions’ involvement can have pros and cons
• Recently approved OECD/INFE Guidelines
Ensure coordination and stakeholders’ monitoring
• Integrate FE in compulsory subjects, develop dedicated learning frameworks and professional teachers’ training
Strengthen financial education in schools
• in the relevant countries, which may build on the experience of Europe and North America
Address challenges of ageing population
• little evidence to date of programme impact • Conduct evaluation systematically and share
its results
Support programme evaluation
THANK YOU!
Feedback and additional input welcome
www.financial–education.org
www.oecd.org/finance/financial-education