financial education strategies in asia: main challenges · pdf fileawareness on financial...

BANK NEGARA MALAYSIACENTRAL BANK OF MALAYSIA 1

BANK NEGARA MALAYSIAKoid Swee LianDirector, Consumer and Market Conduct Department 21 October 2008

Financial Education Strategies in Asia:

Main Challenges and Goals

Malaysian Experience

OECD-Bank Indonesia

Int’l Conference on Financial Education


Financial Sector Master Plan

Building domestic

capacity

Increase domestic

competition

Increase pace for

integration with the

international market

Phase 1 Phase 2 Phase 3

Effective

consumer

protection & fair

market practices

Preconditions to greater deregulation and

liberalisation

2000 20102003 Implemented the consumer education programme


Challenges Facing Consumers

Information

asymmetry & level

of transparency

Low level of

financial literacy

Ageing population

& increase life

expectancy

Easy access

to credit

Innovative

& complex

financial products

Young generation

& attitude to creditFinancial scams

Growing consumer

debt & reduced

household savings

Changing

delivery

channels Challenges


Approach to Consumer Protection

Open,

competitive &

fair financial

system

Speedy

Redress

Good

Information

Avenues to seek

help and redress

Consumer

education goals

Information must be

Allows for best dealsPromotes

innovationEnhances

efficiency

Approach

accurate

easy to understand

accessible

Empower consumers to make informed & confident decisions

Moderate imbalances bet. consumers & financial service providers

Mitigate financial risks associated with financial transactions

Conducive environment for industry growth and development

Maintain long-term consumer confidence in financial markets


Our Approach – Target Group

Audience

General Public (aged 18 & above)

• Make financial information

available and accessible

• Guidelines on Product

Transparency and Disclosure

• Product disclosure sheet for ease

of comparison

Adults•Rural communities

• Women’s group

• Retirees

• Civil servants

• Disabled community

Targeted segment

School children•Primary *

• Secondary*

Broad based

* Including visually impaired school children


TE

XT

Planning

Spending

Financial Products & services

Credit & debt

General issues

Risk management

Savings & budgeting

Buying tips, comparative shopping

Product features, risks & benefits,

T & C, rights & responsibilities

Borrowing & debt mgt, rights and

responsibilities as borrowers

Basic insurance & insurance planning

Redress avenues, illegal schemes,

role & responsibilities of other

players, insurance intermediaries

Education Focus (2003-2008)

Our Approach – Adults


Our Approach – Adults

Broad Based Targeted Segment

•Provision of information via

seminar/ briefing/ advice/ face-

to-face sessions supplemented

with reading materials

•Greater emphasis on basic

money management and

awareness on financial scams

•Face-to-face sessions/ advice/

discussion

•Sharing real cases

•Use community leaders

Delivery

Meetingneeds

• Generic information on

financial products and money

management/ tools/tips/

comparative tables via printed

materials, website, print media

• Outreach – exhibitions / clinics

• Simple language, direct

message, larger fonts, in

different languages

• Website: simple language,

interactive, different languages

bankinginfo insuranceinfo&

Collaboration

• Partners disseminate materials

& provide feedback – financial

institutions/ consumer

groups/NGOs/Govt. Agencies

•Build network to achieve wider

outreach – relevant ministries/

state govt./NGOs/local

communities


Our Approach – School Children

Nurture students with good money management habit to

become responsible adults

Working with schools

• In collaboration with

Ministry of Education

and financial institutions

(FIs)

• School are adopted by

FIs

• FIs impart knowledge

on banking and basic

financial matters

• Participated by more

than 8,000 government

aided schools

• Implemented as one

of the extra curriculum

activities in schools

• Engage in money and

finance related

activities using

workshops and games

• Formed in more than

2,000 schools

Aim

School Adoption

Programme

Students Financial

Clubs (SFC)

• Pocket Money Booklet-

learning tool on money

management

• Duitsaku website –interactive

portal including on line

Pocket Money Booklet

• Lesson plan – Guide for

teachers for the SFC

• Workshop (students) – impart

knowledge

• Workshop (teachers) – share

knowledge and give ideas

on activities for SFC

• Poster competition – to

promote awareness

Providing tools & resources


Our approach – Disabled community

Current target – Visually impaired community

Translate informational

materials into Braille

Making bankinginfo and

insuranceinfo websites user

friendly to visually impaired users

1

2

Adult

Making duitsaku website user friendly to

visually impaired school children

Special school for visually impaired

children

Convert Pocket Money Booklet into

Braille

School Adoption Programme in the

special schools for visually impaired children

School children

1

2

3

4


Note : Cumulative statistics, as at position1 Statistics are from inception2 Statistics are based on latest five years

Progress

Number of Visits (bankinginfo & insuranceinfo )

122,579

172,583

243,541

300,808

63,290

187,679

19,08935,598 49,086

87,265

111,89864,512

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Mar'07 Jun'07 Sep'07 Dec'07 Mar'08 Jun'08

bankinginfo insuranceinfo1 Distribution of Pocket Money Booklet

968

4,647

3,906

3,168

1,897

2,471

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

2003 2004 2005 2006 2007 2008 (Jan-

Jun)'000

2

Distribution of Booklets (bankinginfo & insuranceinfo)

1,200

4,7524,5004,100

2,4003,600

3,930

4,2804,1964,097

2,530

1,200

-

2,000

4,000

6,000

8,000

10,000

2003 2004 2005 2006 2007 2008 (Jan-

Jun)'000

insuranceinfobankinginfo

1 Duitsaku .com Membership Statistic Summary

733

75,602

60,380

82,34986,135

-

20,000

40,000

60,000

80,000

100,000

2004 2005 2006 2007 2008 (Jun)

1


On line portals


www.akpk.org.my

•Agency set-up by BNM to help

consumers with debt problem

• Also offers financial education

programme and credit counselling

• Services are free of charge

Credit Counselling and Debt Management Agency

Outreach activities• Targets youth, young adult segment and armed forces

• Participants (17 years old) in the compulsory National Service

Programme - various aspect of financial management. A total of

120,000 students involved annually

• Students at institutes of higher learning – developed the Personal

Financial Management Module used by a number of institutions of

higher learning as part of the Basic Entrepreneur Course beginning

2008


General Assessment – Work in Progress

Engaging consumers How to best engage consumers in financial education?

What type of information do consumers need? What is the right mix of style and language to be used? Different books for different age group?

What is the right balance between providing too much and too little information?

Rapid development in financial markets requires information to be updated regularly

How to reach more people quickly & effectively?

How to make people practise & internalise what they have learnt?

How to measure achievement? Need a base level of financial capability?

Meeting needs

Adequate information

Keeping abreast

Huge target

Entrenched attitude &

behaviour

Assessment


CEP - Recommendations

• Credible and resourceful driver

– to initiate and implement programme in building blocks

• Collaboration with Strategic Partners

– involve private and public sectors

– encourage others to promote awareness of financial education: media and other publications

– driver to coordinate and take stock to avoid duplication

• National financial education programme

– identify target group

– develop programme to suit target group

– multiple channels of delivery

– promote national objectives: financial inclusion, promote savings, migration to e-payment

• Effective allocation of resources

– Partnership to broaden outreach: publish information in NGO’s magazines

– develop informational material with industry input

– School adoption programme by financial institutions

– financial institutions pay / print and distribute informational material

– train-the-trainers: build expertise & transfer knowledge within target groups


Thank You

Q & A Session

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