FINANCIAL SERVICES BOARD - PowerPoint PPT Presentation

1 / 22
About This Presentation
Title:

FINANCIAL SERVICES BOARD

Description:

promoting an informed nation financial services board financial literacy as a means to financial inclusion: oecd-rbi financial education workshop, bangalore, india 22 ... – PowerPoint PPT presentation

Number of Views:173
Avg rating:3.0/5.0
Slides: 23
Provided by: Sip48
Category:

less

Transcript and Presenter's Notes

Title: FINANCIAL SERVICES BOARD


1
FINANCIAL SERVICES BOARD
Promoting an informed nation
  • FINANCIAL LITERACY AS A MEANS TO FINANCIAL
    INCLUSION OECD-RBI FINANCIAL EDUCATION WORKSHOP,
    BANGALORE, INDIA 22 March 2010
  • Olivia Davids

2
Introduction
  • The FSB is a unique independent institution
    established by The Financial Services Board Act
    No. 97 of 1990, to oversee primarily the
    non-banking financial services industry in South
    Africa in the public interest
  • In 2000 the Act was amended to mandate the FSB
    to
  • Promote programmes and initiatives by financial
    institutions and bodies representing the
    financial services industry to inform and educate
    users and potential users of financial products
    and services.
  • The FSB developed a strategy for Consumer
    Financial Education with a vision to see all
    South Africans manage their personal and family
    financial affairs soundly and irresponsible
    financial services providers not supported but
    reported.
  • .

3
Social situation in South Africa
  • Vast gap still exists between rich poor, urban
    rural, based on historical inequities
  • 4 of the population earns almost 40 of South
    Africas total personal income
  • 75 of South Africans earn less than US
    7,000 per annum
  • University of South Africa (UNISA) Bureau of
    Market Research Report released February 2010

4
Description of the financially excluded
population in SA
  • Form the majority of the population
  • Are largely part of the informal economy
  • Have little or no knowledge of financial
    management
  • Are the primary target for financial education
    initiatives in South Africa by the FSB

5
Credit standing of consumers
National Credit Regulator Sept 2009
6
Consumers in good standing
National Credit Regulator Sept 2009
7
More financial statistics
  • 26 of SA adults are financially excluded and do
    not use formal or informal financial products
  • 10 of the population rely on informal financial
    services such as savings clubs and informal
    moneylenders mostly unregistered
  • 72 of adults say they are not saving
  • 45 of adults have some financial product that
    covers defined risks such as life, burial
    health
  • 28 of adults get money from friends and family
    as a source of income
  • 25 of adults get an income from government
    social grants
  • FinScope South Africa 2009

8
Problems faced by consumers
  • Consumers are not aware that
  • Some funeral insurance policies sold are not
    underwritten
  • Some funeral parlors are not registered with the
    FSB
  • Some insurers take unauthorised upfront
    deductions from consumers
  • Consumers fall prey to pyramid schemes which are
    illegal
  • Service providers keep consumers bank cards with
    their pin numbers and/or their identity documents
    - illegal
  • Consumers could be negatively listed without
    being notified
  • Investment companies that sell shares may not
    always be licensed by the FSB

9
FSB is implementing a targeted financial
education programme
  • Budgeting
  • Saving
  • Insurance
  • Financial rights responsibilities
  • Using formal financial services products

10
Financial education programmes are launched
through
  • Community, workplace other workshops
  • Schools educational events
  • Print media
  • Radio, TV DVD programmes
  • Taxi-ranks shopping malls
  • Booklets brochures

11
Workshops
  • Messages money management, debt, credit,
    short-term insurance and the rights and
    responsibilities of consumers

12
Workshops
  • 200 workshops 5000 participants
  • Workshops were completed in December 2009

13
Media campaigns
  • Weekly programmes for 6 months
  • Others by invitation
  • FSB staff, ombudsmen and other Financial sector
    institutions interviewed.

14
Taxi ranks
  • Commuter education
  • Aimed at commuters at mini bus taxi ranks, train
    stations throughout SA
  • Huge TV screens at ranks, broadcasts onto train
    stations, into taxis and interactive education at
    kiosks
  • Messages money management, debt, credit,
    short-term insurance and the rights and
    responsibilities of consumers

15
Stokvel TV(Informal savings club)
  • Project started in June and completed in November
    2009.
  • 6 inserts on
  • Budgeting
  • Saving
  • Debt management
  • Long term Insurance
  • Short term Insurance
  • Consumer rights and responsibilities
  • A3 page in Daily Sun monthly for 6 months

16
Shopping malls
  • Providing financial information to shoppers in a
    more receptive environment

17
Schools
  • Managing your money
  • Mathematical Literacy resource for Grades 10 11
  • Funded by FSB and SAIA
  • Reviewed by DOE FET Schools
  • Facilitated 34 workshops in 9 provinces
  • Very well received
  • Funds approved for Grade 12 development

18
Money in action
  • Grade R 12
  • EMS, Math Lit., Life Orientation
  • CD- ROM based
  • 4 Stand-alone booklets per phase and band
  • Developed by e-Learning Laboratory
  • 60 workshops in 9 provinces
  • Excellent teaching tool
  • Includes voice-overs

19
Future outlook for FSB
  • Launch National Strategy for Consumer Financial
    Education in South Africa that will
  • Play a stronger role in coordinating financial
    education
  • Strengthen the role of industry in financial
    education

20
Lessons learned in implementing financial
education programmes
  • Multi-pronged approach
  • In SA, face-to-face workshops have proved to be
    effective
  • Monitoring and evaluation systems always in place
    at all phases of implementation
  • 4 / 8 of FSBs Consumer Education Department are
    qualified educators with experience in all levels
    of formal education as well as adult education
  • All material is neutral with no marketing or
    mention of specific brands

21
Some lessons learned in implementing school
programmes
  • The following contributed towards the successful
    implementation of consumer education in schools
  • Obtained the support of the DOE
  • Financial education was integrated into the
    curriculum
  • Used practicing teachers to develop the teaching
    resources
  • Ran workshops for teachers and education
    officials on how to use the resources

22
Thank You
  • Olivia Davids
  • Tel 27 12 428 8123
  • Cell 27 082 8522090
  • E-mail oliviad_at_fsb.co.za
Write a Comment
User Comments (0)
About PowerShow.com