1. Financial Education and Marketing:Keeping the two apart? Lyndwill Clarke Head: Consumer Education Financial Services Board - South Africa CONFERENCE ON FINANCIAL EDUCATION Prague, CZECH REPUBLIC 16 -17 May 2013

2. Definitions Financial education: the process by which financial consumers/investors improve their understanding of financial products, concepts and risks and, through information, instruction and/or objective advice, develop the skills and confidence to become more aware of financial risks and opportunities, to make informed choices, to know where to go for help, and to take other effective actions to improve their financial well-being. OECD Marketing: the action or business of promoting and selling products or services, including market research and advertising. Oxford dictionary 11 years of consumer financial education in South Africa

3. Why are the lines blurred? 11 years of consumer financial education in South Africa • Financial institutions not serious about CFE • Cost saving • Lack of capability • Opportunity “There is a ‘halo effect’ surrounding education programs, which you can use to strengthen your brand and attract new business throughout the community.” Morgan Vandagriff, Co-Founder Banzai financial literacy tool

4. Why do institutions do Financial Education? 11 years of consumer financial education in South Africa Is it because consumers are asking for help? Or is it because financial institutions think people need it and they want to make a difference? Are you going to build trust? Glean some positive PR? Or is it to bring in new business?

5. How do we keep the two apart? 11 years of consumer financial education in South Africa • Insist • Regulation? • Educate the industry • Develop codes of conduct for industry (and service providers?)

6. South African perspective (FSB) 11 years of consumer financial education in South Africa • We regulate to protect consumer and to provide an financial environment that is safe for consumers to invest in. • SA widely regarding as having the best regulatory markets in the world, but a recent baseline study has shown that this has not led to consumer confidence to invest as a large number are aware of the products but fail to take it up.

7. Regulation 11 years of consumer financial education in South Africa • Solvency Assessment Management • Treating Customer Fairly (TCF)

8. Educate the Industry 11 years of consumerfinancialeducation in South Africa • Regulatory Examinations • Establish a National Committee of Stakeholders consisting of: • NGO’s • Industry associations • Government departments • Civil Society and Labour • Regulators (Regional example: KZNFLA)

9. Codes of conduct for Industry 11 years of consumer education in South Africa • Financial Sector Codes for BBBEE • 0.2% of after tax profits for CFE (0.4% by 2015) • Financial Sector Codes Access Standards for CFE • Service providers; amount of branding; target group; type of initiatives (awareness, etc.); Impact, monitoring and evaluation; funding

10. More questions than answers 11 years of consumer financial education in South Africa • Should we allow integration? • How to monitor • How to protect consumer rights (shopping around) • Legal implications and resources • Point of sale education?

11. Points to ponder 11 years of consumer financial education in South Africa As long as you have a system that is based on the rational that if you are making money you are thereby making a contribution to society, financial rogue practices will continue, unfortunately sometimes in the guise of financial education and to the determent of the consumer.

12. Thank youContact Details www.mylifemymoney.co.za 11 years of consumer financial education in South Africa Mr Lyndwill Clarke HOD: Consumer Education Financial Services Board – South Africa E-mail: Lyndwill.Clarke@fsb.co.za Tel: (+27) 12 422 2819 Mobile: (+27) 79 881 1805 www.fsb.co.za