ROLE OF PRIVATE AND NON-FOR PROFIT STAKEHOLDERS IN FINANCIAL

EDUCATION

OECD/INFE GUIDELINES

High-level conference on global and European trends in financial education

22-23 May 2014 - Istanbul, Turkey

Flore-Anne Messy, OECD Executive Secretary of the International Network on Financial Education (INFE)

1

• Importance and challenges of the involvement of private and non-for-profit stakeholders in financial education

2

• The OECD/INFE Guidelines for private and non-for-profit stakeholders in financial education

Outline

Financial Education :

The role of private and non-for-profit stakeholders

Stages of the financial education strategy

Design of the

national strategy

Implemen-tation

Develop ment of

tools Support

Evaluation and

research

3

The challenging nature of financial education

Financial education is a public good. But investment pays off in the long term

Adequate and sustainable :

based on evidence and evaluated

A long process :

results may be apparent only in the long run

In consumers’ interest (unbiased):

help consumers understand their financial needs and act upon them

Of high quality :

in order to promote behavioral changes

Fair and equitable :

for all and especially vulnerable groups

The role(s) of private and non-for-profit stakeholders

in financial education is essential but….

Key benefits

• Expertise on financial and/or education issues

• Expertise in marketing/ communication

• Reach and proximity to consumers

• Resources & appetite

Challenges to be addressed

• Conflicts of interests

• Focus on short-term initiatives

• Some consumers may be left out

• Non-coordinated initiatives

• Evaluation? 5

Mapping of existing

practices and development

by the INFE in 2013

Approval of the INFE for

public consultation in

Oct. 2013

Public consultation from Nov. 2013 till

Feb. 2014

Expected approval at the INFE rechnical

committee meeting

on 21 May

Dissemination and possible transmission

to G20

3. Addressing these challenges: OECD/INFE Guidelines for private and non-for-profit

stakeholders in financial education

Introduction

I. Scope and definitions

II. Guidelines

A) Framework

B) Key criteria

III. Compliance

The Guidelines : Structure

I – Scope and definitions :

A wide range of stakeholders

• Banks and financial institutions

• Microfinance institutions

• Agents and intermediaries

1. For-profit institutions

providing financial services

• Private service providers doing financial education on behalf of other organisations

• Consultancy firms

2. For-profit institutions delivering financial education for a business

• Employers, industry at large

• Telecomunication companies- mobile banking 3. Non-financial

for-profit institutions

• Industry association of banks

• Foundations

• Financail ombudsmen

4. Not-for-profit organisations with a link to the financial sector but no direct commercial interest

• NGOs, educational centres,

• trade unions; consumer associations 5. Not-for-profit organisations

with an interest in financial education

8

I - Various modalities of involvement of

private and non-for-profit stakeholders :

Integrated coordinated approaches

• Consulted or full participation (Australia, Brazil, the Netherlands)

• Role of industry associations

The preparation and development

of the NS framework

• Responsibility for implementation (Brazil)

• Mandatory provision of financial education (Indonesia, South Africa)

• Public private partnerships for dedicated projects (Malaysia, Singapore)

Involvement in the implementation of the NS framework

• Mandatory contribution to financial education (UK)

• Voluntary contribution for projects or the all NS (New Zealand)

Provision of financial support

9

Association of banks and others develop their own

financial education activities with little

relation to the national framework

Different private entities (including NGOS) develop their own financial education

initiatives globally or nationally

Active monitoring and development of

codes of conduct is

recommended

I - Various modalities of involvement of

private and non-for-profit stakeholders :

Non-coordinated approaches

A) Framework 1) Co-ordination between public, private and non-for-

profit stakeholders

2) Managing potential conflicts of interest and other shortcomings

1. (financial and in-kind) support for governmental strategies and initiatives

2. Indirect involvement of financial institutions (role of industry association)

3. Monitoring through -voluntary or compulsory- codes of conduct

4. Distinction between commercial and educational activities

• no promotion of products combined with financial education

• conflict of interest are disclosed and managed

• educational resources are distinguished from commercial material

II – Guidelines

B) Key Criteria Applying to resources and trainers :

1) Objectivity • Definition : balanced, impartial unbiased and not linked to commercial priorities

• Use of logo limited within national circumstances

• Staff involved in financial education do not carry marketing activities

2) Quality of resources and trainers 1. Tailored to national circumstances

2. Appropriate to the target audience

3. Fair – addressing all segments of the population

4. Accurate, complete, up to date and of high quality

5. Easily accessible

3) Monitoring and evaluation

II – Guidelines

• Awards, accreditation, certification, and

licensing systems of programmes and

providers establishing the criteria and

modalities to deliver financial education

• Monitoring and compliance mechanisms to

be developed by public authorities

III – Compliance

Thank you

Flore-anne.messy@oecd.org www.financial-education.org