The global voice of savings and retail banking March 2010 Bangalore, India Mr. Adinan Maning GM/Chief Executive, Bank Simpanan Nasional, Malaysia President WSBI Asia Pacific 1

The global voice of savings and retail banking Presentation Outline Introduction Financial Inclusion and Education Managing Conflicts of Interest Responsible Selling Practices Core Guidelines 2

The global voice of savings and retail banking World Savings Bank Institute 110 banks & national associations from 92 countries WSBI Asia Pacific – 23 members in 16 countries Members’ large outreach – accessibility of financial services to all Focus – access to finance and banking & providing financial education to the low income and underserved customer groups 3

The global voice of savings and retail banking WSBI - Financial Inclusion & Education Increase access to financial services, especially the poor Provide basic information about money Establish trust between financial institutions and customers Run financial education initiatives and programs Collaborate with stakeholders i.e. government, private and public companies A Policy Priority 4

The global voice of savings and retail banking WSBI Members’ Experiences in Financial Education 5

The global voice of savings and retail banking Bank Simpanan Nasional, Malaysia - Educating the Community 48 Micro Finance Centers Advisory centers for micro entrepreneurs 380 Branches Access to various financial products & services 6 Mobile Banks Basic banking knowledge & facilities for rural areas Various school programs Inculcate savings habits from young 6

The global voice of savings and retail banking Government Savings Bank, Thailand – Bank for the People Dissemination of basic financial knowledge - “GSB’s Learning Centers” o launched in communities to : o encourage people develop a sense of learning. o develop a better life for the community o foster good relationships between the bank & community o provide learning materials i.e. books, e-learning media etc. Financial Education for children – School-based banking scheme o “School banks” established since 1998 to promote savings habits among children o Model bank operated by students – children play roles of different bank staff; GSB acts as advisor and auditor 7

The global voice of savings and retail banking Postal Savings Bank, Philippines Financial Education for children – Educating Youths on Savings o provide training to teachers on how to work with children on savings. o distribute manuals & handouts on social and financial education (in co-operation with Aflatoun). o provision of teaching guides on Financial Literacy to all public elementary schools across the country. 8

The global voice of savings and retail banking National Savings Banks, Sri Lanka Inculcate savings habit among children – School-based Banking o Interactive project where children design their school bank and play roles of bank staff. o NSB plays an advisory role for teachers & students. Raise awareness of savings among children o NSB conducts tailored seminars for children to encourage savings. National Savings Institute, India Promotes MOF’s tailored savings products for small savers o Focus on people in rural areas. o Disseminate information on concept and role of small savings via TV, radio, newspapers and other channels. 9

The global voice of savings and retail banking Balancing dual objectives Profitability and Sustainability vs. Social Responsibility Paradigm shift Short Term Investment vs. Investment for Future Have in place procedures and guidelines Involvement and Support of Central Bank and Government Managing Conflicts of Interest 10

The global voice of savings and retail banking Disclose essential information on financial products and services to enable comparison. Increase product transparency and disclosure whilst encouraging product innovation and maintaining flexibility. Ensure that the financial products and services sold are appropriate to needs and resources of the consumer. Responsible Selling Practices 11

The global voice of savings and retail banking Accountability and Responsibility in the provision of information and advice Procedures available in addressing potential conflicts between business goals and educating customers Fair, transparent and unbiased involvement WSBI encourages OECD to consider developing guidelines or recommendations for financial education on savings Core Guidelines 12

The global voice of savings and retail banking THANK YOU 13