FSS 2020
3
Overview
� The Nigerian financial economy has experienced a paradigm shift within the last 2 to 3 years
� The population’s exposure to the dynamics of a changing financial system has led to some education and awareness
� There is much more that is happening very rapidly and intensively
� The qualification, skill, knowledge and attitude of people will be the greatest impediment or catalyst to our economic growth.
� The FSS 2020 Human Capital Development Strategy provides a plan for developing and retaining high caliber talent required to achieve the overall FSS 2020 Vision.
Financial System Strategy2020
Global Competitiveness Report
� World Economic Forum 28th Global Competitiveness Report 2007
� Covered a total of 128 countries
� Global Competitiveness Index focuses on 9 pillars based on 140
questions:
1. Institutions
2. Infrastructure
3. Macro economy
4. Health & primary education
5. Higher education & training
6. Market efficiency
7. Technological readiness
8. Business sophistication
9. Innovation
Financial System Strategy2020
Africa’s Competitiveness Index
102104Gambia11
101102Nigeria10
9497Kenya9
8488Namibia8
8183Botswana7
7676Algeria 6
-73Libya5
7072Morocco4
4858Mauritius3
4546South Africa2
3029Tunisia1
Global
Competitiveness
2006
(Out of 125)
Global
Competitiveness 2007
(Out of 128)COUNTRY
Financial System Strategy2020
Africa’s Competitiveness Index
125128Angola22
120123Ethiopia20
119121Zimbabwe19
117120Malawi18
115117Zambia17
113116Uganda16
112115Lesotho15
109113Madagascar14
108111Cameroon13
105108Tanzania12
104107Benin11
Global
Competitiveness
2006
(Out of 125)
Global
Competitiveness
2007
(Out of 128)
COUNTRY
Financial System Strategy2020
Nigeria’s global competitiveness on higher education
66Extent of staff training8
61Local availability of research & Training services7
95Quality of management and business schools6
105Quality of maths & science education5
72Quality of educational system4
96Tertiary enrolment3
111Secondary enrolment2
116Primary enrolment1
10Overall rating for Africa
Financial System Strategy2020
Nigeria’s global competitiveness on technological readiness
111Personal computers7
99Internet users6
99Mobile telephone subscription5
45FDI & Technology transfer4
69Laws relating to ICT3
80Firm level of technology absorption2
88Technological readiness1
10Overall rating for Africa
FS
S 2
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State of the Nigerian Educational System:
� There are currently only 46 tertiary institutions in Nigeria providing education covering all functional areas
� Out of the 42m Nigerian Children who ought to be in primary school, less than 24 million are in school
� Out of the 33.9m children of secondary school age, only 6.4m are in secondary schools
� The Pass rate for 2005 JAMB examinations is about 20% - indicates poor quality of secondary school graduates
� The Educational system has not been tailored to meet developmental needs of the nation
� The Federal higher institutions have suffered decay due to poor planning and mismanagement of funds
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� Emphasis in Nigerian institutions has been on verbal activity
rather than skill acquisition and problem solving activities
� Recently, the ministry of Education has embarked on a reform
agenda aimed at restructuring and improving the quality of the
educational system. These initiatives include Project CRISIS
amongst others
Financial Education
� There is only one recognised institution specifically established to
develop technical training for the financial services industry on a
continuous basis – The Financial Institution Training Centre
(FITC)
(Source: Ministry of Education)
State of the Nigerian Educational System:
FSS 2020
Players in the management of financial education
Major Players Target Group Role in Human Capital Development
Ministry of Education • Primary, Secondary• Vocational and technical
training students• Teachers
Basic education in primary and secondary schools. Responsible for adult literacy
Nigerian Universities Commission (NUC)
• University students• Lecturers
Curricular development, accreditations, audits of universities
Financial Institutions Training Centre (FITC)
• Bankers Generic financial Education
Chartered Institute of Bankers of Nigeria (CIBN)
• Bankers Training, research, Certification
Institute of Chartered Accountants of Nigeria (ICAN)
Holders of:• Senior Secondary School
Certificate • Ordinary National Diploma • National Certificate of
Education (NCE) • Graduates
Training, research, Certification, Continuing Professional Education
FSS 2020
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Major Players Target Group Role in Human Capital Development
Chartered Institute of Stockbrokers (CIS)
Stockbrokers Training, Research, certification
Banking Institutions Employees of individual In-house training for employees
Money Market Association of Nigeria (MMAN)
Corporate bodies (Banks, Discount houses)
Training, certificationlibrary, a research, reference and information center, banking, finance and allied disciplines
Chartered Institute of Personnel Management (CIPM)
Human Capital Management Practitioners, students
Education, training, research and certification
Chartered Institute of Taxation of Nigeria (CITN)
Tax management and administration practitioners, students
Education, Training, Research and Certification
Nigerian Institute of Management (NIM)
Students, Graduates, Managers
Training and certification
Other financial Education providers
Employees of financial services institutions
Training
Players in the management of financial education
FSS 2020
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Regulators of the financial system
Regulatory Agency Financial Services Sector Regulated
Central Bank of Nigeria (CBN)
Banks, Discount Houses
Securities and Exchange Commission (SEC)
Financial Institutions operating in the Capital Market
National Insurance Commission (NAICOM)
Insurance firms
National Pension Commission (PENCOM)
Pension Fund Administrators
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� Leading practices from four countries including Singapore, Dubai, South Korea and the United Kingdom were identified and used as benchmark studies.
� These countries develop Human Capital strategies on 2 levels:
� Specifically for the Financial Services industry and
� for the Educational System
� Strategies adopted for Financial Services Education include:
� In-sourcing in the short to medium term
� Continuous review of the educational system to ensure relevance to the financial sector
� Establishment of an industry owned training institute to meet specific human capital needs of the industry
� Private sector investment in local institutions to provide financial education
� Mass Financial literacy programs
Benchmarking global trends
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Benchmarking global trends
� Some of the strategies for developing the Educational System include:
� Educational Curricula alignment with requirements of employers
� Positioning technical education as key to economic development
� Private sector participation in education to complement government
effort
� Use of vocational training methods to boost Human Capital
Development
� Mass literacy programs to improve adult literacy
FSS 2020
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Human Capital Development Issues
� A summary of key issues that have affected the quality of Human Capital within the Financial Services industry can be classified under two categories:
– Issues which fall within its circle of influence (issues that FSS 2020 can influence and/or has control over)
– Issues which fall within its circle of concern (issues that FSS 2020 has no control over)
FSS 2020
The gap that needs to be filled
Where we are now
Collapse of the Nigerian
educational system
Weak leadership & negative cultural
values
Mass financial illiteracy levels
Absence of industry wide certification Low leverage on
Technology“Brain Drain”
Inadequately skilled Human capital within the financial services industry
Poor infrastructure and quality of life
FSS:2020 Circle of concernFSS:2020 Circle of influence
FSS 2020
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Vision
“To make our Financial Services Industry
the Repository of the most talented and the
most competent people in the emerging
economies by the
Year 2020”
Key Elements of our Vision:
� Repository- The store house, primary source
� Most Talented – With natural financial acumen
� Most Competent – Excellent skills, behaviour and attitude
FSS 2020
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Mission
“To constantly attract, develop and retain the best of human capital
for our Financial Services Industry”
FSS 2020
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Key Success Factors (KSF)
1. Private Sector participation in the formation and implementation of educational policies and funding of education
2. Provide incentives to attract leading financial institutions andencourage local financial institutions to invest in Human Capital Development
3. Strategic alliances with international donor organisations for the development of human capital for the financial services industry
4. Stimulate mass financial literacy
5. Supportive immigration policies
6. Reduction of Language Barrier
FSS 2020
Skills relevant to the industry
�Core technical skills�Numeracy
�Investment Management�Marketing
�Accounting�Selling
�Financial Management�Information Technology
�Human Capital Management�Interpersonal
�Research & development�Communication
�Underwriting�Analytical
�Actuarial �Credit
�Project Management�Customer service
�CRM�Managerial
�Risk Management�Leadership
FSS 2020
Elements of Proposed model forHuman Capital Development
Create a competency management
Framework for the industry
Establish reputable financial
academies
Close gaps between
competencies of new hires & requirements
Develop mass financial literacy
programmes
DRIVERS: FSS 2020 Corporation, Ministry of Education, Financial System Regulators, Professional Bodies, NUC, National board for technical education
OPERATORS: Financial Institutions, Financial Education Institutions , OtherStakeholders
ENABLERS: Donor Organisations, NGOs
POLICIES: Competency management policy, Aligned curricula, Human Capital Management Guidelines
INCENTIVES: Human Capital Development awards for Financial Institutions
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Strategic Objectives & Initiatives
1. Define and communicate
� competency requirements for key roles in the industry
� Human Capital Management guidelines for the Financial Services Industry.
� A policy to ensure compliance by operators.
2. Develop an automated database system to collate and update data on competency levels in the industry
3. Collaborate with industry operators and relevant professional bodies to analyse data on competency levels for key job roles in the industry
Develop industry-
wide minimum
Competency
Requirements for
Professionals in the
Financial Services
Industry, and build
a system to monitor
adherence.
Objective 1
2009
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1. Develop an Industry wide Knowledge
Management Framework
2. Conduct current state assessment of
existing Financial Education
Institutions
3. Explore possibilities for strategic
alliances with Foreign Educational
institutions, donor organizations and
Nigerians in the diaspora to develop
existing Institution
4. Identify, accredit, invest-in and regulate existing Institutions capable of providing financial education & certification
Strategic Objectives & Initiatives
Upgrade existing
Financial Academies &
Institutions and
collaborate with
leading Financial
Education Institutions
to accelerate the
development
capabilities and
innovation in financial
products and services
Objective 2
2010
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5. Introduce Standard Certifications for key job roles in the industry
6. Develop incentives to encourage collaboration between local educational institutions and financial institutions to promote financial education
7. Establish a financial services academy
8. Conduct annual audits to ensure that the financial services academy remains relevant to the development of the industry
Strategic Objectives & Initiatives
Upgrade existing
Financial Academies &
Institutions and
collaborate with leading
Financial Education
Institutions to
accelerate the
development
capabilities and
innovation in financial
products and services
Objective 2
2010
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1. Identify typical skill sets required for complex financial transactions from other leading financial centres
2. Influence the redesign of the curricula in those areas as appropriate
3. Explore possibilities for strategic alliances with foreign institutions and Nigerians in Diaspora
Strategic Objectives & Initiatives
Develop
supporting skills
(Legal, Accounting
etc.) that will lead
to talent clusters
typical of leading
international
financial centres
Objective 3
2008
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1. Engage in continuous
communication with the Diaspora
through the many organisations
that exist
2. Seek to form a Financial services
Diaspora Group, which is ready
to support the development of
financial skills
3. Create opportunities for members
of the Diaspora to engage with
our local financial economy as a
step to returning home!
Strategic Objectives & Initiatives
Develop specific
and deliberate
programs
focused on
tapping the skills
of Nigerians in
Diaspora
Objective 4
2009
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1. Publicise expectations and objectives of FSS 2020
2. Identify relevance of current educational curricula the future needs of the Financial services industry
3. Organise a stakeholders’ conference to devise strategies for influencing educational policy development
4. Influence the redesign of the educational curricula to emphasize specific FSS 2020 skills requirements
5. Collaborate with foreign financial institutions to ensure continuous identification of relevant skills for the financial sector and to align with the educational curricular
Strategic Objectives & Initiatives
Proactively
influence the policy
development and
implementation of
the Nigerian
Educational System
to address
developmental
needs of the
financial system
Objective 5
2010
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1. Identify and define elements of financial literacy education
2. Design the blue print for mass financial literacy education
3. Launch mass financial literacy programme
4. Influence the incorporation of elements of financial literacy education into the curricular at all levels of Education
Strategic Objectives & Initiatives
Stimulate
mass financial
literacy
Objective 6
2010
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1. Study existing SBDC Programs at
Wharton, Columbia etc
2. Encourage Nigerian Universities to
locate SBDCs
3. Explore forming alliances between
the Nigerian SBDCs and those at
foreign universities
Strategic Objectives & Initiatives
Create Small Business
Development Centres
(SBDCs) in
Universities with MBA
Programs to provide
consulting services
and impart business
skills to MSMEs
Objective 7
2008
FSS 2020
Agree what the indicators of
success should be to measure performance
Agree the organisational framework that
will manage and drive the HCD initiative
Agree FSS:2020 value
proposition with respect to Human Capital Development
Set up various HCD initiatives
to meet the needs of the
different sectors of the
Financial services industry
Define the training
curriculum, scope,
activities and infrastructure
to provide training
Agree the measurable
outcomes for each sector
training initiative
Set performance standards, rewards,
penalties and continuous
trainer development
Define trainer profiles, job descriptions
and expectations
Recruit trainers to research,
develop, manage, and execute the
training initiatives and
curriculum
Imp
lem
enti
ng
HC
D S
trat
egy
1 2 3
4 5 6
7 8 9
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Conclusion
� The availability of skilled Human Capital is fundamental to creating and sustaining the momentum of FSS 2020.
� There is an immediate need to enhance the skills of the current workforce and a medium to long term need to develop a continuous pipeline of quality Human Capital for the Nigerian Financial Services Industry.
� This will depend heavily on the reformation of the collapsing Educational and Institutional structures in Nigeria.
� ….and on the collaborative and co-opetitive attitude that the existing players in the Financial Services industry decide to adopt
FSS 2020
Conclusion
� We must start by believing that it can be done
� We must commit to doing it
� We must have the will to do it
� We must be passionate to sustain it
� If we really stop to think about it
� …… it really can be done