1. Trends in the implementation of national strategies for financial education
Financial Education in the Arab World
Strategies, Implementation and Impact
Skhirat, Rabat, Morocco October, 2016
Andrea Grifoni
Policy Analyst
Financial Education and Consumer Protection
OECD

2. National Strategy for Financial Education What is it?
No one-size-fits-all model! A National Strategy is a nationally coordinated approach to financial education that consists of an adapted framework which:
Recognises the importance of financial education and defines its meaning and scope at national level in relation to 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”

3. Status of NS in 2015 59 economies
Jordan May 2015
Other have national strategy for financial inclusion with a strong FE component (Tunisia)
Red square indicates the countries that feature as case studies within the G20 OECD Policy Handbook

4. OECD/INFE work on National Strategies (NS) for Financial Education
2012 High-level Principles endorsed by G20 Leaders and supported by APEC Ministers of Finance
2013 Publication on NS status in G20 economies welcomed by G20 Leaders
2015 Policy Handbook on the implementation of NS

5. Outline Developing a diagnosis
Establishing institutional and governing arrangements
Setting and achieving objectives, funding and evaluating the NS
Ensuring effective and innovative provision of FE
Components of the design and implementation of a national strategy for FE

6. 1 - Developing a diagnosis: measuring
Measurement
48 economies have conducted at least one baseline financial literacy survey
Adults: OECD/INFE (39) Youth: PISA financial literacy assessment 2012 and 2015 (24 countries); next 2018
Longitudinal surveys and ethnographic studies
Follow individuals/households over time to understand changes in their financial behaviour
Focus groups
Understand specific policy areas or target groups (Brazil, the Netherlands, Hong Kong)
More regular simpler measurements “trackers”
Easier to conduct, annual or bi-annual basis (Australia, New Zealand, South Africa)
Increasingly they include behavioural and attitudinal elements
Aim to capture financial wellbeing (United States, United Kingdom)
UK: 70 families over 9 months
Saudi Arabia (OECD/INFE)
Jordan OECD/INFE 2015
WB: Lebanon, West Bank and Gaza, Morocco

7. 1 - Developing a diagnosis : mapping
Consultation with stakeholders (32 economies)
Calls for evidence
Research in cooperation with Universities
How
Inventory, review and evaluation of existing initiatives (40 economies)
Co-opt not-for-profit and private sector stakeholders
Gather additional evidence
Identify valuable resources and programmes
Objectives
The revision of the Australian national strategy involved: a National Financial Literacy Forum, a public consultation, and a stocktaking exercise.
Estonia and Latvia: the mapping and consultation exercises revealed that some target groups received a lot of attention, while other areas were left uncovered.

8. Outline Developing a diagnosis
Establishing institutional and governing arrangements
Setting and achieving objectives, funding and evaluating the NS
Ensuring effective and innovative provision of FE

9. 2 - Establishing institutional and governing arrangements
Few but increasing
Explicit mandates
Ensure Leadership and Flexibility
Define role for stakeholders Multi-stakeholders approaches
Creation of a new body
Separation of directive/executive and implementing roles
Governance structures
8 explicitly in founding acts (ASIC Australia, FCAC Canada, FSAs Estonia Indonesia Japan South Africa, MAS UK)
6 through primary or secondary legislation
13 have implied it from other responsibilities
NS that are more financially sustainable
Greater accountability and visibility to the public and the government
Easier to engage with stakeholders
Boost FE components in other pieces of legislation
Legal basis for Codes of Conduct and enforcement
8 explicit
6 through primary or secondary legislation
13 have implied it from other responsiblities
Different models but a clear leadership
And mandate on financial education
One or more already existing institutions (Australia, Czech Republic, Mexico)
A new body (UK, New Zealand, HK)
A coordinating body/council involving various stakeholders (Brazil, India)
Broad platform spearheaded by one institution (Netherlands, Singapore)
A person (Canada)

10. 2 - Increasing involvement of the private sector
Benefits
Financial support
Specialist and up-to-date knowledge,
Reach a wide audience, to exploit teachable moments,
Combine financial education with financial inclusion
Challenges
Potential conflicts of interest,
Lack of coordination
Lack of evaluation
Private sector: contribution of financial resources, specialist and up-to-date knowledge on financial issues, reach a wide audience, to exploit teachable moments, combine financial education with financial inclusion. However, potential shortcomings, including un-coordinated initiatives, duplication of efforts, lack of teaching experience and expertise, potential conflicts of interest, targeting of the most profitable and easy-to-reach clients, preferential focus on short-term views, initiatives and resources.
not-for-profit organisations well-positioned to address hard-to-reach audiences and can have expertise in specific fields (e.g., pedagogical expertise). However, shortcomings: lack coordination
Support for public strategies and initiatives
Indirect involvement of financial institutions
Development of, and compliance with, codes of conduct
Distinction between commercial and educational activities

11. Private sector involvement
OECD/INFE Guidelines on Private and Not-for-profit Stakeholders in FE
Indirect involvement: through industry associations (Portugal), in-kind support (New Zealand website) and mandatory levies (UK)
Portugal: ‘Principles for Financial Education Initiatives’ within the NS and recognition: only programme complying with the principles are recognised with the NS
Criteria for neutrality of financial education programmes in Japan
OECD/INFE Guidelines : Australia, Canada
Targeted guidelines for specific programmes to guide stakeholders in their interventions (eg in schools) in the Netherlands, Singapore etc.
Mandatory participation in South Africa or Indonesia :
Financial institutions have to develop financial education and report back on their activities.
In India, State Banks have to offer financial education in centres created in branches around the country

12. Outline Developing a diagnosis
Establishing institutional and governing arrangements
Setting and achieving objectives, funding and evaluating the NS
Ensuring effective and innovative provision of FE

13. 3 – Setting and achieving objectives Tailored roadmap and action plans
Define consistent policy priorities in line with initial diagnosis
Identify key target groups based on mapping, assessment and government priorities
Set measurable and realistic goals: important for a regular assessment
Common objectives and priorities
In the Investor Education Centre in HK used a model borrowed from public health interventions and marketing (together with more traditional methods such as measurement surveys, desk research, and focus groups) to identify target audiences.
The NS framework should define an overall and cross-sectoral vision and set general, realistic and measureable objectives and policy priorities for the NS in accordance with the findings of the preparatory phase and the circumstances of the country.
HK : Priority to these segments is assigned according to group size, needs, accessibility, penetration, resources and equity. Examples of suggested target groups are: population vulnerable to financial stress (credit card borrowers, pre-marriage couples, first-time flat owners), parents with dependents (new-to-be parents, parents with school aged children, single parents, new to Hong Kong parents)...
Measurable policy objectives: the Australia’s revised NS includes key indicators aligned to the strategy's priorities to facilitate monitoring and reporting, such as Number of teachers participating in ASIC's MoneySmart Teaching professional learning program; Number of people accessing ASIC's MoneySmart website and print materials

14. 3 – Setting and achieving objectives Funding the strategy
Ideally dedicated and sustainable budget per project
Mixed public–private resources
Resources
Statutory levy on the financial services sector (Ireland, South Africa, United Kingdom)
Mandate financial institutions to develop FE programmes and report on results and impact (Indonesia)
Secure commitment from the private sector and encourage funding on projects that can serve the objectives of the NS (Canada)
The NS framework should define an overall and cross-sectoral vision and set general, realistic and measureable objectives and policy priorities for the NS in accordance with the findings of the preparatory phase and the circumstances of the country.

15. 3 – Setting and achieving objectives Evaluating the strategy
Overall evaluation
Quantitatively
Repeated financial literacy measurement surveys
Financial behaviours trackers (Australia, New Zealand, South Africa)
Qualitatively
Consultation with stakeholders (permanent/ad hoc)
Analysis of the evaluation of single programmes of the NS
Use of Core Competencies on financial literacy
They identify targets against which to measure progress
UK: 70 families over 9 months
OECD/INFE

16. Case studies and good practices
Biannual reports on progress on the overall NS New Zealand
ASIC in Australia commissioned an independent evaluation of the implementation of its MoneySmart Teaching program
Randomized control trial of FE in school in Brazil involving 891 schools in six states. Based on the results of the pilot the government plans to extend FE in primary schools.
The Money Advice Service in the UK is developing a financial capability evidence hub to collect evidence from evaluated programmes to share ‘what works’

17. Outline Developing a diagnosis
Establishing institutional and governing arrangements
Setting and achieving objectives, funding and evaluating the NS
Ensuring effective and innovative provision of FE

18. 4. Effective delivery
Facilitating access to information/education
Seek to centralise information = one user friendly website
Advertise the existence of such resources
Provide information/education through trusted and known sources
Assist consumers in comparing and assessing products
Taking account of timing and location
Harness environments conducive to cognitive learning = schools, workplace
Do not waste potential teachable moments
Include financial education in existing social and community activities
Modulate intensity = between soft and high-touch interventions
Supporting motivation and decision-making
Build financial competencies foundation early in life
Develop financial knowledge but also attitude and skills
Introduce incentives
Use peer pressure and community effects
Develop interactive methods = games, competition
Provide a tool box for action
Reduce time between teaching and action
Seek consumers’ feedbacks

19. Case studies
Reaching hard-to-reach groups: embed messages about positive financial behaviour in TV, soap operas, movies and radio dramas in various African countries (Kenya, Nigeria, South Africa, HK, Singapore, etc).
Introduction of FE in high schools: pilot, use of high-quality resources (materials rigorously tested, and teachers trained through workshops, DVDs and a guidebook); engaging and relevant material (interactive material with practical exercises, relevant to young people’s lives); focus on both the acquisition of knowledge and on shaping attitudes; involving students’ families (Brazil, Malaysia, Peru, …)
Engage out-of-school children and young people: comics, educational videogames (Austria, US)
Enhance financial literacy together with other relevant skills: programmes combining financial education with training on health and life skills for young women in Africa as a way to improve their overall empowerment

20. Key messages Developing a diagnosis
Establishing institutional and governing arrangements
Setting and achieving objectives, funding and evaluating the NS
Ensuring effective and innovative provision of FE

21. 5 Key messages
Continued and increasing relevance of National Strategies for Financial Education: OECD/INFE members will focus on implementation → Policy Handbook (G20, 2015); OECD/INFE working group on implementation
Financial education : A win-win solution….not a silver bullet :
Policies should go hand-in-hand with consumer/investor protection and inclusion → G20/OECD High-level Principles on Financial Consumer Protection, 2011
→ G20 Principles for Innovative Financial Inclusion, 2010
→ G20 High-Level Principles for Digital Financial Inclusion, 2016
Key success/performance indicators should be set and realistic → OECD/INFE core competencies on financial literacy – G20
Evidence/research-based approach and ongoing evaluation to monitor impact and ensure accountability → OECD/INFE Updated toolkit to measure adults’ financial literacy and inclusion – G → PISA Financial Literacy, 2012, 2015, → OECD/INFE Toolkit to evaluate programmes
Leadership role of public stakeholders with a mandate and means
Coordination and multi-stakeholders partnerships are vital OECD/INFE Guidelines For Private and for-profit stakeholders in financial education

22. شكرا THANK YOU! andrea.grifoni@oecd.org