financial system strategy 2020 - central bank of … capital/human...financial system strategy 2020...

Financial System Strategy2020

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FSS 2020 International Conference

Human Capital Group Presentation

OVERVIEW

FSS 2020

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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.

NIGERIA: Current Position Assessment


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


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


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


Top 3 African Performers in each Pillar of the GCI


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


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

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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

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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

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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

Human Capital Development

VISION AND MISSION

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

Strategic objectives , initiatives & timing

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


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


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


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!


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


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


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


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

FSS 2020

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FSS 2020

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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

FSS 2020

Thank you for listening

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