DEVELOPING NATIONAL STRATEGIES FOR
FINANCIAL EDUCATION:
OECD/INFE HIGH LEVEL PRINCIPLES
______________________________________________
OECD/WB/RBI CONFERENCE ON FINANCIAL EDUCATION
THE RUSSIA/WORLD BANK/OECD FINANCIAL LITERACY AND EDUCATION
TRUST FUND, 4-5 MARCH 2013, NEW DELHI
Flore-Anne Messy
Senior Policy Expert
Executive Secretary
of the International Network on Financial Education
OECD Financial Affairs Division
OUTLINE
1
• Global context : Importance of financial education and
OECD/INFE contribution
2
• Rationale, definition and international framework for
National Strategies on Financial Literacy
3
• OECD/INFE high level principles :
International experiences
4
• Guidance for the implementation phase
1. Empowering financial consumers :
a necessity in an evolving societal & financial context
A riskier, broader, complex and innovative
financial landscape
Limits of financial consumer protection and regulation
Low level of financial literacy
A caveat emptor financial retail market :
related negative spill over effects
•Asymmetry of information, knowledge and power
•Lack of trust in financial markets and providers
•Fraud, abuses & misselling of products
•Financial and social exclusion/ inadequate protection
•Costs for governments, consumers and the industry
Low level of financial literacy/capability
(OECD/INFE 2012 survey and national surveys)
Attitude : confidence/trust, awareness and care
Knowledge of financial concepts and understanding of products
• Only 10% of respondents provided correct answers to a series of very simple
financial knowledge questions (source US 2009 survey)
• At the same time, 37% self-assessed their financial knowledge as very high
Skills and long–term planning
•A majority has difficulties in planning ahead and for retirement
•Households’ overindebtedness is increasing in most countries
Groups at risks
• young and elderly people, women, low income groups are more
Financial consumer empowerment trilogy :
Global recognition
OECD/INFE High-Level
Principles on
National Strategies for
Financial Education
Financial
Education
G20 (2011) High-Level
Principles on Financial
Consumer Protection
developed by the OECD
Financial
Inclusion
G20 (2010) Principles
for Innovative
Financial Inclusion
Financial
Consumer
Protection
Financial Education (FE) :
A Capacity building process
“by which financial
consumers/investors improve their
understanding of financial
products and concepts; 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
take other effective actions to
improve their financial well-being”.
Outcome:
improved financial
literacy/capability
OECD 2005
definition
OECD/INFE contribution to Financial Education
Work started in 2002! serviced by 2 OECD Committees
Three areas of work
• 1- Data collection, analytical work & research
• 2- Policy instruments & implementation methodology
• 3- Global and regional policy dialogue & co-operation
7 set of policy instruments and a body of research
International Network on Financial Education
106 countries, 260 public institutions
International Gateway for financial education
www.financial-education.org
OECD/International Network on Financial Education
(INFE) Priority areas of work
Data and
methodologies
• Measurement of
financial literacy
• Adult (14 countries)
• Young population
PISA (18 countries)
• Evaluation of
programmes
Key projects
Selected issues
• Credit
• National strategies
• Saving & investment
• Youth & School
• Pensions &
Insurance
• Financial inclusion
• Behavioral
economics
• Women
• Social marketing and
communication
strategies
Projects developed thanks to the Russian Trust Fund
2. National Strategy for Financial Education (NS)
Definition
No one size fits all model!
NS =A nationally coordinated approach to financial education that
consists of an adapted framework or programme which :
Recognises the importance of financial education and defines its meaning
and scope at national level in function of identified national needs and gaps
Involves the cooperation of different stakeholders as well as the identification
of a national leader or coordinating body/council
Establishes a roadmap to achieve specific and predetermined objectives
within a set period of time; and,
Provides guidance to be applied by individual programmes in order to
efficiently and appropriately contribute to the strategy”
2. National strategies for financial education
Relevance
Articulated and
tailored
approach
Identify and
address policy
or particular
groups needs
Promote
financial
literacy as a life
skill
Identify and
promote efficient
practices
Avoid
duplication of
resources
Identify
relevant
stakeholders
Reinforce cooperation and
trust
3. Selected findings of OECD/INFE survey :
NS status
Around 40
countries have
launched a NS
process
Often integrated in
a wider approach
for financially
empowered
individuals
•  3/4 of respondents
• India, Indonesia, Singapore, Japan,
Malaysia, Australia, New Zealand,
• Hong Kong, Thailand (in the
pipeline)
• Financial inclusion (and cash
money transfer) and/or
• Consumer protection
measures/approaches
11
Preparatory and diagnosis phase
Implementation
directions and
evaluation
Roadmap and
main priorities
Governance
and
Role of stakeholers
National Strategy for Financial Education
Framework
The foundation : preparatory step or diagnosis phase
Mapping of
existing resources
and stakeholders
Avoid
duplication of
resources
Identify
successful
practices
Baseline survey of
the level of financial
literacy
Target groups/
needs and
gaps
Main policy
issues
Consultation
process amongst
key stakeholders
Start
elaborating
coordination
mechanisms
National
awareness and
communication
Raise
awareness
Build trust and
consensus
Attract
relevant
stakeholders
Benefits of the preparatory phase
Increased
trust amongst
stakeholder
Agreement on
joint priorities
based on
evidence!
Initiated
coordination
Next steps of the NS :
• Governance and role of stakeholder
• Roadmap and key priorities
• implementation
1st Building pillar :Governance mechanisms and
role of main stakeholders
Clear leadership
(mandate on
financial education)
• An already existing institution
(often the Central bank/Ministry of finance)
• A coordinating body/council involving
various public stakeholders and
operating arrangements
• A new body with a dedicated mandate
(UK, New Zealand)
• A person (Canada)
Coordination
mechanisms
• Flexible and evolving overtime
• Defining stakeholders’ roles and
responsibilities
15
1st Building pillar (cont.) :
the Role of main stakeholders
Public authorities
• Lead and establish the framework
• Set main priorities
• Design quality standards
Private players
• social
responsibility ≠
conflict of
interest
• Self regulatory
bodies & PPP
International
network &cooperation
Key civil stakeholders
• Media; NGOs; trade
unions, employers,
consumer associations
2nd Building pillar: Tailored roadmap
Common objectives and priorities
• Measurable (need for a regular assessment!) and realistic
• Consistent policy priorities
(e.g. improve saving, reduce debt, increase financial inclusion)
• Target : youth (school), women, elderly, vulnerable
Resources
• Ideally dedicated and sustainable budget at least per project
• Mixed public–private resources
3rd Building pillar – implementation :
Flexible directions
Delivery methods and evaluation
• Define quality standards for providers
• Grant awards or certify programmes’
quality
• Support evaluation of programmes
Changing behaviors requires a balanced
combination of regulation and quality education
THANK YOU!
Flore-anne.messy@oecd.org
www.financial-education.org