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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
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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 DEVELOPMENT OBJECTIVE WHAT DO WE DO? 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)
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 sectorsResponsible 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
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
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