ILO approach and experience in financial education Yousra HAMED Technical expert - Social Finance International Labour Organisation

International Labour Organization  Specialized Agency of the UN founded in 1919 Tripartite structure: Government, employers’ and workers’ organizations Promotion of decent work  4 pillars: Promoting fundamental rights at work, creating decent jobs, improving social protection, strengthening social dialogue ILO and financial inclusion Innovative finance for social justice Promoting inclusive finance on 3 levels: policies, institutions and clients

ILO’s Financial education (FE) intervention model WHAT DO WE DO? DEVELOPMENT OBJECTIVE EXPECTED OUTCOMES Enhancing financial capabilities of target groups Contributing to Financial inclusion for social justice Workers, entrepreneurs, migrant workers & their families, farmers, families with working children, youth make informed decisions about earning, spending, savings, borrowing, using insurance, money transfers and other services Development / adaptation of FE materials addressing needs of diverse target groups and contexts Training of trainers Training/counseling or (mass)media campaigns to equip target groups with financial knowledge, skills and tools Impact assessments to refine models Workers, entrepreneurs, migrant workers & their families, farmers, families with working children , youth... have: built their assets engaged into and taken advantage of income generating activities; or invested their wages protected themselves against risks (i.e. health, accident, disaster, over-indebtedness…) In parallel strengthening the provision of financial services Technical assistance to Financial Service Providers (FSPs) for them to assess needs of clientele/target groups and develop relevant products Capacity building of FSPs to improve their performances and better manage products diversification FSPs offer credit, savings, insurance, money transfers and other products that meet the needs of target groups Possibly combined with other support services (skills, BDS, migration) for a greater impact

The ILO and financial education…. The story certainly started with…. then… and… And then… it got more and more diversified…. With also videos, music, radio programmes , …

Examples of training materials Trainer's Manual (North Africa) Part 1: Presentation (context, objectives, strategy) and proposal of tools to help trainers organize and facilitate training Part 2: core curriculum: 7 modules each contains 2 to 4 training sessions - total of 24 sessions in 37 hours Part 3: Toolkit - 13 training sessions targeting workers, migrants, homeworkers and entrepreneurs Learner Handbook (Tunisia) Adapted to the target audience (women, youth and migrants and their families) Uses personal stories of characters (comics, case studies, practice) 5

Process for FE programme development Example: Morocco in the framework of the project Youth at Work Identification of needs (regional mapping, BAM meetings, CMS, AMC ...) Development of the strategy (adaptation of tools, validation workshop, ToT, integration with other project activities) First adaptation of the material by an international trainer with experience in Morocco: cultural and target group. Workshop on the adaptation and validation of training materials for young people in Morocco (November 2013 in partnership with the Central Bank of Morocco and CMS) Training of trainers, testing of material and development of institutional dissemination strategies: Agadir 17-21 February 2014 Finalization of training materials: End 2014 – Common national Moroccan FE material Roll out of trainings and accreditation of trainers Dissemination phase and potential declination of tools in other formats

Challenges and opportunities Integrated approach Monitoring Quality Outreach Adaptation to the context and target groups Limited scope with classroom trainings yet it gives an opportunity to have a common basis to use other channels. Evaluation and impact measurment Going beyond training of trainers and building a programme for experts, policy makers and broader development professionals Accreditation system International database Locally and target adapted manuals + Generic manual available Mass media, soap operas, theatres, flyers, brochures, e-learning…

Tentative programme for the NEW training programme for policy makers and development practitioners Day 1 Key concepts Financial sectors Responsible finance: consumer protection, financial education and financial institutions’ regulations - Current trends (global) Financial services typology and financial education for improved use Day 2 Macro level and policies - Financial education country framework - Establishing institutional and governing arrangements Day 3 Designing specific strategies to address needs of various segments - Profiling the consumer market segments - Review of various delivery examples - Creating an outreach strategy for different segments Day 4 Implementation- Designing partnerships - Action planning Day 5 Market place

Some lessons learnt to foster impact of FE initiatives Adapt curriculum and delivery channel to target group needs Build on existing local financial education initiatives Define common standards for a recognition of different financial literacy curriculum/levels Strengthen impact assessment mechanisms Institutionalize financial education curriculum in government programme Identify relevant partners and build strong partnerships Further explore innovative approaches for up scaling Combine financial education with other services

Thank you! Yousra HAMED Social Finance Programme www.ilo.org/socialfinance hamed@ilo.org 11

Impact : Outreach and impact Outreach The program covers some 20 countries in Asia, Africa and Europe   Asia: 10,675 trained   Africa: 400 trainers and 2000 trained Latin America: 150 trainers and 12.000 trained (2018)   Europe: 30 consultants and trainers and thousands of trained bank clients Impact : Fasecolda - Colombia - Risk Management and Insurance Education Intervention: Campaign mass media (radio-300,000) + workshops (15,000) Results: Participation in workshops + exposure to media campaigns helped to better identify risks, including risk management strategies and use of insurance No evidence of changes in attitudes http://www.impactinsurance.org/projects/lessons/risks-and-insurance-literacy 12

Impact - Microfinance for decent work AMK – Cambodia Innovation: Implemented an indirect training approach to improve financial literacy and staff skills by bringing important messages to group meetings throughout the loan cycle. Result: Most positive impact on customer repayment behavior: 3.4% reduction in payment delays Positive and significant impacts on: • asset accumulation at 10% increase, • financial behavior with an 8% reduction in the idea that it is impossible to save, an increase 1% of the associating savings with safer and better management of the indebtedness and a change of attitude towards the loan.

Impact - Microfinance for decent work Vision Fund– Cambodia Innovation: Classroom training for clients Results: Some impact on financial behavior and risk management 10% decrease in the negative perception of insurance • Partial improvement of the provision towards savings • 9% increase in the amount set aside in the event of an emergency • 22% increase in the capacity to set money aside for use in case of emergency Little data on asset accumulation Many mitigated and intuitive results regarding multiple borrowing / over- indebtedness and vulnerability