Enhancing Financial Literacy through Institutional Initiatives

1. Role of Institutions in Delivering Financial Literacy 22 - 23 March 2010 Bangalore, India Mr. Adinan Maning GM/Chief Executive, Bank Simpanan Nasional, Malaysia President WSBI Asia Pacific

2. Presentation Outline • Introduction • Financial Inclusion and Education • Managing Conflicts of Interest • Responsible Selling Practices • Core Guidelines

3. 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

4. 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

5. WSBI Members’ Experiences in Financial Education

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

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

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

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

10. Managing Conflicts of Interest • 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

11. Responsible Selling Practices • 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.

12. Core Guidelines • 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

13. THANK YOU