financial education and marketing: keeping the two apart?
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Financial Education and Marketing: Keeping the two apart? . Lyndwill Clarke Head: Consumer Education Financial Services Board - South Africa. CONFERENCE ON FINANCIAL EDUCATION Prague, CZECH REPUBLIC 16 -17 May 2013. Definitions. Financial education : - PowerPoint PPT PresentationTRANSCRIPT
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Financial Education and Marketing:
Keeping the two apart? Lyndwill Clarke
Head: Consumer EducationFinancial Services Board - South Africa
CONFERENCE ON FINANCIAL EDUCATIONPrague, CZECH REPUBLIC 16 -17 May 2013
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Definitions
Financial education:
the process by which financial consumers/investors improve their understanding of financial products, concepts and risks and, through information, instruction and/or objective advice, develop the skills and confidence to become more aware of financial risks and opportunities, to make informed choices, to know where to go for help, and to take other effective actions to improve their financial well-being.
OECD
Marketing:
the action or business of promoting and selling products or services, including market research and advertising.
Oxford dictionary
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Why are the lines blurred?
• Financial institutions not serious about CFE
• Cost saving
• Lack of capability
• Opportunity
“There is a ‘halo effect’ surrounding education programs, which you can use to strengthen your brand and attract new business throughout the community.”
Morgan Vandagriff, Co-Founder Banzai financial literacy tool
311 years of consumer financial education in South Africa
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Why do institutions do Financial Education?
• Is it because consumers are asking for help?
• Or is it because financial institutions think people need it and they want to
make a difference?
• Are you going to build trust?
• Glean some positive PR?
• Or is it to bring in new business?
411 years of consumer financial education in South Africa
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How do we keep the two apart?
Insist
Regulation?
Educate the industry
Develop codes of conduct for industry (and service providers?)
511 years of consumer financial education in South Africa
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South African perspective (FSB)
We regulate to protect consumer and to provide an financial environment that is safe for consumers to invest in.
SA widely regarding as having the best regulatory markets in the world, but a recent baseline study has shown that this has not led to consumer confidence to invest as a large number are aware of the products but fail to take it up.
611 years of consumer financial education in South Africa
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Regulation
Solvency Assessment Management
Treating Customer Fairly (TCF)
711 years of consumer financial education in South Africa
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Educate the Industry
Regulatory Examinations
Establish a National Committee of Stakeholders consisting of:
• NGO’s
• Industry associations
• Government departments
• Civil Society and Labour
• Regulators
(Regional example: KZNFLA)
811 years of consumer financial education in South Africa
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Codes of conduct for Industry
Financial Sector Codes for BBBEE
• 0.2% of after tax profits for CFE
(0.4% by 2015)
Financial Sector Codes Access Standards for CFE
• Service providers; amount of branding; target group; type of initiatives
(awareness, etc.); Impact, monitoring and evaluation; funding
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More questions than answers
Should we allow integration?
• How to monitor
• How to protect consumer rights (shopping around)
• Legal implications and resources
Point of sale education?
1011 years of consumer financial education in South Africa
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Points to ponder
1111 years of consumer financial education in South Africa
As long as you have a system that is
based on the rational that if you are
making money you are thereby making
a contribution to society, financial rogue
practices will continue, unfortunately
sometimes in the guise of financial
education and to the determent of the
consumer.
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Mr Lyndwill ClarkeHOD: Consumer Education
Financial Services Board – South AfricaE-mail: [email protected]
Tel: (+27) 12 422 2819Mobile: (+27) 79 881 1805
www.fsb.co.za
1211 years of consumer financial education in South Africa
Thank youContact Details
www.mylifemymoney.co.za