CONFERENCE ON FINANCIAL EDUCATION
Prague, CZECH REPUBLIC 16 -17 May 2013
Financial Education and Marketing:
Keeping the two apart?
Lyndwill Clarke
Head: Consumer Education
Financial Services Board - South Africa
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
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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?
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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?)
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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.
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Regulation

Solvency Assessment Management

Treating Customer Fairly (TCF)
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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)
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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?
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Points to ponder
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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Thank you
Contact Details
Mr Lyndwill Clarke
HOD: Consumer Education
Financial Services Board – South Africa
E-mail: Lyndwill.Clarke@fsb.co.za
Tel: (+27) 12 422 2819
Mobile: (+27) 79 881 1805
www.fsb.co.za
www.mylifemymoney.co.za
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